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    Analytical review of Boeing company shares on 12.02.2016

    The Boeing Company, #BA [NYSE]
    Industrial goods aircrafts and spaceships, USA

    Financial performance of the company:
    Index – DJIA, S&P 500;
    Capitalization – 72.65 В;
    Income - 5.17 B;
    P/E - 14.58;
    Beta – 1.08;
    Return on asset - 5.30%;
    Average volume – 5.37 М;
    ATR – 4.68.

    Analytical review:

    • The company ranks the fifth on capitalization in the sector of “industrial goods” among the issuers trading in the American stock market;
    • On 27 January, the company reported for Q4 of 2015 fiscal year. Press-release of the company showed that over the reporting period net profit of the company fell by 30% from 1.47 billion USD to 1.03 billion. USD). EPS decline (return on asset) amounted to 25%, from 2.02 USD to 1.51 USD;
    • At the press-conference company’s management said that poor financial performance of the company is related with slowdown in the world economic growth and significant decrease in demand for air freight;
    • According to press-release, in 2016 sales will drop by 2.2-2.9%, from 762 commercial aircrafts toо 740-745;
    • Company’s management plans to introduce a program to reduce costs due to the loss of the market share in the sector passenger transportation;
    • Since mid December 2015 the decline in company’s shares amounted to 25%. Large investment funds and banks (RBC Capital, Wells Fargo, JP Morgan) predict that quotes of the company will continue to decline.

    Summary:

    • Decrease in demand for airfreight, slowdown of global economy, decline in sales and high competition in the market of passenger air traffic will have a negative impact on company’s activity. Large investors expect decline in price of company’s shares.
    • In the near future quotes of the company are likely to decline.

    Trading tips for CFD of the Boeing Company

    Long-term trading: the issuer fell below support level of 115.30 USD. If this level maintains and in case of testing of this level and respective confirmations (for example, pattern Price Action), we recommend to open short positions. . Risk per trade is less than 1% of the capital. Stop order can be placed slightly above the signal line. For this position we recommend to place Take profit in parts at the levels of 107.00 USD, 102.00 USD and 98.00 USD with the use of trailing stop.

    Short-term trading: currently, the issuer is traded between the local level of support and resistance 105.70 – 111.50 USD. We recommend to enter the market after breakdown and testing of these levels. Positions should be opened near the signal line and the nearest support/resistance levels. Stop order can be placed slightly above/below the signal line. Risk per trade is less than 1.5% of capital. For this positions we recommend to place Take profit in parts at the levels of 50%, 30% and 20% with the use of trailing stop.


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