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BB&T senior equity research analyst Carter Leake on the issues plaguing Boeing’s 787 and its impact on the company’s outlook.
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The -- show.
Would you buy it.
Would you fly it to questions we're asking about Boeing today the shares are falling again after yet another issue with -- 787 dreamliner.
Here's a stock right now -- about three and and changed percent you know look at 74 dollars this is the -- picture but.
It's been a rough a couple of days here first.
There's this on your screen is -- piece of equipment that clearly got smoky caught fire heated up over heated.
Plus in the wake of some of these problems one Japan airlines jet had to make an emergency landing in Japan so.
This next analyst was well ahead of the curve downgraded the company last week Carter leak BP -- T senior equity research analyst is joining me now.
In a Fox Business exclusive Carter.
Let's talk about first or downgrade last week where you obviously have concerns about this where you felt it was more than a glitch there would be more problems to come.
How did you know what brought you to that point.
Well it was the fact that it was a fire.
Noted that the incident in Boston that we knew would bring the NTSB onto the airplane and it is just our experience having -- worked -- an aircraft manufacturer and flying commercial aircraft as well that we.
We felt that because it was electoral there was tremendous risks like something like this would happen again and as much as -- like to think -- press yet you know last night's incident is you know we obviously that we didn't think it would be that -- but there was then and as you can tell by the stock.
This is what's gonna -- Boeing stock for the next several months there there are active investigations going on with the FAA now you now have the Japanese doing an active investigation.
And we even have the Chinese so we feel that Boeing is close of you know this thing is it's likely getting out of there -- -- you downgraded it to a whole week just showed I believe it was a one month or two or three month chart and it was.
Plummeting on the one month you -- you see that was the first incident that it.
Came up again that a plummeted on the second incident back up again here comes another issue with Japan airlines.
So do say hold its fire already on the stock.
You're saying don't do anything just hold on vs selling it.
Well that's right I mean we still you know we're still in the camp that long term the bombings in is gonna work through this issue and the united they'll fix it but -- incidents like this you don't know what you know make it more and more -- and certainly increase the risk on the stock but we're currently hold on the stock.
Carter let me play devil's advocate here.
I looked at some of the specs on this thing they have twin.
Twin jets on their engines in case something happens with the battery there are four redundancies on this battery.
When you look at some of them that the instruments predictive wind shear that lets the pilots know in advance what kind of landscape that might be dealing with I look at this and I say.
This is a great company you know it's it's -- its Airbus CLK Lockheed Martin we can throw -- a bunch of names of some people perceive as competitors here but.
You know.
This is much safer when you look at -- accidents in automobiles than it is to drive a car.
For sure that's always been the case in the airline business and made it -- the airplane is safe and and the reason you when we people will throw out the term it's safe the reason they're saying that is the multiple levels of redundancy.
And more importantly the ability of the airplane to sort of shed loads electrical loads and put it on sort of a battery in this case.
It's at least get the -- center on the ground regard to what happens what what would.
Make you change your call to a buyer do you even have an accumulate any more my showing my age yet.
Candidate who it buy sell hold okay got it would what would what would make -- switch to -- -- Well that -- to a -- going to be a little bit tougher because it's gonna BC this is going to be slow going for going with -- out active investigation.
You know so long the body we we need to see a lot more especially since we've had another incident and we have.
So many you know variables -- that that we're looking out so it that's going to be a tough one.
Carter lake AT&T senior equity analyst he was out front -- just watch out hold hold still on this one it's been very volatile might continue to be thank you Carter very much.
Thank you but.
