Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, August 28, 2009

Article Excerpt

THE BOEING CO., $51.04, New York symbol BA, rose 11% this week after the company said that its new 787 Dreamliner passenger jet would make its first test flight by the end of this year. Last June, Boeing had to suspend test flights after it discovered structural weakness where the plane’s wings connect to its body. The company now believes that it has fixed this problem. Boeing is unable to sell the first three Dreamliners it built because it made so many modifications to them in the design and testing process. As a result, it will classify their construction costs as a research expense. This will lower its third-quarter earnings by $2.21 a share. To put this in context, Boeing earned $1.41 a share in the second quarter of 2009. However, the charge is an accounting adjustment and will not affect Boeing’s cash flow or cash balances. The company still has roughly 850 orders for the 787, despite the fact that the…