Thread regarding Spirit AeroSystems layoffs

Boeing's CEO was fired

Things just got real.

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The Boeing's book value of one share is -7 USD (check The Long Term Debt/Equity is not even listed; why? When equity as a denominator reaches 0, what number does the Long Term Debt reach: Infinity. But the Equity is not zero, it is Negative. The pension fund is stuffed (in the billions) with Boeing stocks.

The bond ratings for Boeing are barely at the investment grade level. If they try to sell more bonds at this time, their rating might fall to the B category or Junk, depending on the amount they are trying to sell. The interests on Junk bonds are much higher than investment grade (proportional to perceived risks). Boeing had to stop is multi-billion stock repurchase program (the pump that allowed the stock to jump from $150 to $400). It stuffed the institutional investors' pockets (Vanguard being the biggest shareholder). Insiders own only 0.07% of Boeing stocks (why should you own it?)

So who would you bring as a CEO?

Accountants who can reassure the financial markets and manipulate the numbers, that is: David Calhoun and Lawrence (Larry) Kellner.

Both accountants are known for lay-offs, M&A, divestitures. Calhoun is a former GE exec, and Kellner is former CEO of Continental Airlines. Where is Continental today? Where is GE today? GE bonds are rated Junk.

If you are about to retire, consider cashing your pension.

Post ID: @ccb+12EN8SuL

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