An Ugly day in the market today.
CCI bought a third lot of a position in Boeing today at just under $70. Unfortunately it continued to fall all day down near $68, so not great timing. However, CCI thinks the overall story first documented in this this article in January remains correct. The core of the investing thesis is that the dreamliner is a "unique" product in the world. When it starts rolling off the line it will drive Boeing's stock back towards $100 in the future (2013?), but now was the time to start slowly accumulating a position in the stock
Two quarters after the article, Boeing's plan still seems to be to deliver about 25 dreamliners this year, but they certainly have had issues in the past. This is not to say the last 6 months have been overly positive for Boeing as they had some govt contract penalties, had to split the order for planes from American with Airbus, etc. However, they continue to plan to deliver the most planes in their history this year, ramping production into next year, and have a backlog of $323b (up only 1% this year).
So with today's fear in the market, CCI stuck to the plan of adding a lot under $70. Hopefully it will pay off over the longer term.