Originally Posted by
edmundronald
I predict the 737 MAX inventory will be written off. The Chinese or Europeans or Canadians will get blamed. The company is preparing a new design for market, and as soon as they have the project ready they will file for Chapter 11, and a lot of the stock will be acquired on the cheap by a rescue team and then they launch the new design sales, with government incentives as the dastardly communist Chinese and socialist Europeans and health insured Canadians and .. and ... and insert your favorite country here ... killed the MAX ... see above. And yes, Muilenburg will come out of this with ... lots of moolah, and current shareholders will get raped.
Edmund
That’s almost amusing and I wouldn’t take anything off the table but maybe somewhat tongue in cheek to suggest “writing off” 400 planes is going to happen.
I would take anything JP Morgan says with some skepticism. Their recent history of valuing company’s and markets is somewhat spotty. They were on the blunt end of a claw hammer with WeWork and it wasn’t that many years ago these same brainchild’s held those subprime traunches in high esteem. Regardless, 400 planes don’t go from a value of X to a liability of -X. Even if the program is scrapped its reclamation value puts substantial $$$ on Boeings balance sheet.
No doubt there is still a huge uphill climb for the plane and company but it carries a huge economic impact and the company is literally too big to fail. See auto bailouts and banking bailouts for the perfect example and mentality of what the US Gov will most assuredly do. They’ll get bailed out by the tax payers if it comes to that. However, if it’s a 100 mile race we’re still on mile 35. Long way to go before that comes to fruition.