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22 Possible Black Swan Events for Boeing $BA #caveatemptorperspective

Boeing (NYSE:BA) has twenty-two (22) possible Black Swan events. Most big cap companies play CYA and publish possible risks to the business. The list is meant to mitigate any possible exposure to litigation by disgruntled shareholders who may choose to believe they were not sufficiently informed. Once you get past the boiler plate style the fundamental investor will appreciate the twenty-two (22) possible Black Swan Events as an analytical framework for the Buy-Sell-Hold or Ignore Matrix. Remember only the paranoid survive.

  1. general conditions in the economy and industry, including those due to regulatory changes;
  2. reliance on commercial airline customers;
  3. the overall health of  aircraft production system, planned production rate increases across multiple commercial airline programs, commercial development and derivative aircraft programs, and aircraft being subject to stringent performance and reliability standards;
  4. changing acquisition priorities of the U.S. government;
  5. dependence on U.S. government contracts;
  6. reliance on fixed-price contracts;
  7. reliance on cost-type contracts;
  8. uncertainties concerning contracts that include in-orbit incentive payments;
  9. dependence on subcontractors and suppliers, as well as the availability of raw materials,
  10. changes in accounting estimates;
  11. changes in the competitive landscape in our markets;
  12. non-U.S. operations, including sales to non-U.S. customers;
  13. potential adverse developments in new or pending litigation and/or government investigations;
  14. customer and aircraft concentration in Boeing Capital’s customer financing portfolio;
  15. changes in ability to obtain debt on commercially reasonable terms and at competitive rates in order to fund our operations and contractual commitments;
  16. realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures;
  17. the adequacy of insurance coverage to cover significant risk exposures;
  18. potential business disruptions, including those related to physical security threats, information technology or cyber-attacks or natural disasters;
  19. work stoppages or other labor disruptions;
  20. significant changes in discount rates and actual investment return on pension assets;
  21. potential environmental liabilities; and
  22. threats to the security of Boeing and/or customers’ information.

George Gutowski writes from a caveat emptor perspective. Follow him on Twitter @financialskepti . Follow his evil twin brother who writes Wall Street Murder Thrillers @georgegutowski

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