Out Fox The $treet

Boeing has an order issue that most manufacturing firms would gladly accept. The massive backlog over rides any concerns regarding short-term order issues. The large capital returns suggest the stock remains undervalued. Any manufacturing firm lives off of orders so obsessing over monthly and quarterly numbers has some validity. A problem though occurs when investors don't view the big picture of the magnitude of the backlog. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Delta Air Lines continues to tell anybody that will listen the purchase prices for used 777s.  Along with a downgrade, Boeing is down sharply on the news.  The recommendation is for investors to continue focusing on the order book for narrow-body planes and ignore the noise generated by a customer looking for cheaper planes.  In an interesting news twist, Asia's largest carrier agreed to purchase 110 Boeing (NYSE: BA ) airplanes, yet the market appeared more interested in the cost of one used plane. The news bits continued a spate over the last several months regarding a glut in the airplane market and specifically the wide-body jets. See my original research on the issue here . Read the full article on Seeking Alpha. Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Boeing (BA) reported solid Q3 results and upped guidance. Unfortunately though Boeing has done nothing to improve its Net Payout Yield. The dividend yield has now slumped to 2.4% which isn't shabby but by no means impressive considering they lack a buyback component. For now, BA is a core holding of the Net Payout Yield Portfolio (coming to Covestor soon). Without a higher yield though, we'll likely trim the position on any advances in the stock price. Management did pay down $500M in debt during the quarter which is positive, but without any moves on the stock it suggests they are complacent with the current price. At a current price of $72, BA trades at roughly 17x the high end of the 2010 guidance of around $3.80 to $4 making the stock on the expensive side. Analysts place the 5 year growth rate around 10% so BA clearly trades expensive compared to growth potential as well. While the airplane industry is on the verge of a multi year cycle, BA management hasn't made an ...

Anybody just focusing on domestic US traffic would miss how the rest of the world is seeing explosive growth in airplane traffic. For airplane lessors it's mostly about international growth and with Boeing continuing to struggle to get their new plane out it just makes the planes owned by lessors like AerCap (AER) and Genesis Lease (GLS) more valuable. Below is a couple of examples of the explosive growth seen outside the US and in places other then China and India. LAN Airlines (IFL) is one of the leading airlines in Latin America with a dominant position in Chile and Peru plus operations in Argentina and Ecuador. They reported a huge 11.9% increase in system traffic for September. System passenger traffic for September increased 11.9% as capacity rose 9.3%. As a result, the Company's load factor increased 1.8 points to 78.8%. International passenger traffic accounted for approximately 71% of total passenger traffic. Domestic passenger traffic in Chile, Argentina, Peru and Ec...