Boeing Shares – Time to buy?

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Boeing 737 Max is the best selling model


Two of Boeing 737 MAX have crashed minutes after taking off within a period of six months.

The first crash is Lion Air in Indonesia shortly after take-off, killing 189 people on board. The second crash happens on 10th March 2019, killing 157 people on board. Similarly, the aircraft also crashes shortly after take-off.



737 is the best selling model for Boeing, it received 760 orders and delivered 580 planes in 2018. Out of the 580 planes, 256 are 737 MAX 8 edition and almost all of the 737 new orders are for MAX 8 model.

The new 737 have an automatic mechanism that readjusts the plane if the system believes the aircraft is flying at an angle steep enough to put it at risk of stalling. While investigations into both tragedies have yet to definitively confirm the reasons behind each crash, the anti-stall system is believed to have played a role in both cases.



Boeing might be facing a lawsuit ahead and the delivery will be delay till these issues are resolved.

Boeing is currently trading at US 373, it might go lower to around US 330 before going swinging up.

DISCLAIMER:

This post is base on my personal opinions and is not investment advice. FinancialMTC does not accept liability for any losses or damages from my post.

Author: The Financial Guy

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