Boeing or EADS?

Recently Boeing and the Europen EADS corporation put in a bid with the United States Air Force for the new tanker worth up to $40 Billion. EADS plans on using the Airbus A330 platform modifying it for use as a tanker... While Boeing plans on using their 767. Who do you think has a better shot at winning and would you invest in your choice. Do you think that the winners stock will go up enough to make it worth investing in? Thoughts?

 

Voted for Boeing though

 

Investing in an aerospace comapny is normally a bad idea since both companies rely heavy on government investments. If the government decides to kill a program such as the F-22 the stocks tend to plummet and the companies don't pay out huge dividens. If you do decide to buy, don't hold the stock very long. Keep in mind DOD is projected to cut defense spending 700 billion over the next 5 years. If you want to invest, invest in stocks that stands the test of time; ie companies that make consumer goods that consumers will buy regardless the economy such as Proctor and Gamble, Anheuser Busch, Walmart and Kellogg.

 

This is definately not a long-term idea. I'm fairly certain that Boeing will win the contract causing a jump in stock prices at which point I will sell. Not hoping for a 300% return. It seems like Medical is the way to go with all the Baby-Boomer hitting retirement and old age. With old age comes more medical problems, kinda messed up to look at it that way... but it's true.

On a side note, I recently PCS'd out of Langley. Kinda miss it... But Hickam is so much nicer this time of year.

 

I'd say Boeing has a much better chance in this political climate. Buying planes for Airbus would not win a lot of votes with unemployment as high as it is right now.

 

I guess one can only hope that at a time when our economy is in shambles and Boeing has come in with a contract that gives the government what they asked for, the Air Force doesn't opt to buy foreign. Boeing has a work force in excess of 159,000 employees total with offices in almost every state. If selected, Airbus has promised to build a factory in Alabama and hire 5000 employees. You can do the math.
Just my thoughts.

 

I say Boeing because I make parts for them!

 

It looks like it, but EADS still has some time to dispute the decision. 3 Days to ask for a reason why they lost-5 Days for the Briefing on why they lost and then 5 more days to decide to protest... But as soon as Boeing got the contract the stock jumped ove $2 per share, which was my initial reason for buying. So now I'll give it the 13 days and hope that EADS dosen't protest.

 

Wow, this has been going on for so long it's amazing.
I used to work on the 767 Tanker program 5 years ago and I would say... invest in peanuts

 

I hope EADS does protest. This was just another Govt scam our leader had his hand in since Boeing is out of Chicago. Why bother helping out the Gulf Coast after all the disaster we have had the last few years. Mobile originally was awarded the contract until boeing protested and then all of a sudden boeing gets 100% of the contract? WTF, something sounds fishy to me.

 

Boeing was originally awarded the contract back in '02, then it was dropped because of the leasing deal... then it was awarded to Northrup/Airbus in '08 (?) then derailed because of political hooplaa... now back to Boeing.
Not saying either one is better than the other, just saying it is hardly 'all of a sudden' and it started well before Obama was in office.

 

I agree with jrobson we have been hit hard down here. I think political influence had a major role in the decision as well.

 

This...and I voted Boeing

 

I don't know shit about stocks, but I'd say the the 767 tanker program is looking better than the A330, and the Air Force will generally be more likely to buy American.

 

I do not trust the stock market; it is a rigged game, and the financial system is as unstable like a house of cards when the fan is blowing.

I would advise purchasing some gold on the next price dip. If you can handle volatility, palladium is testing the 50 day moving average. Both are still in a bull market, and I would dollar-cost-average in to such a position to get a better price overall and mitigate risk.
(note - URLs are to StockCharts.com and Wikipedia; they are safe)

Do not use an ETF if you are buying and holding due to counter-party risk, I cannot emphasise this enough, take delivery by purchasing the metal through BullionDirect or APMEX. If you do not hold it, you do not truly own it since you would be beholden unto Wall St.

(disclaimer - 6,93 oz. gold, 1 oz. palladium)