Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, October 18, 2024

Article Excerpt

BOEING CO., $154.99, New York symbol BA, is still a hold. The aircraft maker now plans to raise new capital as it faces several challenges. Those include a strike by more than 33,000 machinists at its factories in the U.S. northwest, which began on September 13, 2024. Aviation regulators have also forced Boeing to slow production of its 737 Max planes due to quality control issues. To shore up its balance sheet, Boeing now plans to sell $10 billion worth of new common shares. It also plans to issue up to $15 billion in new debt. The total—$25 billion—is equal to 26% of its $95.5 billion market cap (the total value of all outstanding shares). Boeing also announced that it will cut 17,000 jobs (10% of its total workforce) as part of a new strategy to narrow its focus to fewer businesses. The plan should save it $2 billion annually. Due to charges related to the reorganization, Boeing expects to report a loss of…