Boeing (BA) came under substantial pressure in late 2019.
In fact, since late November 2019, BA fell from $380 to $320.
All after revealing 2016 emails that called into question the safety of the 737 Max jet’s flight control system. The FAA said it found the messages to be “concerning” and “is reviewing this information to determine what action is appropriate.” In addition, FAA Chief Steve Dickson told Boeing’s CEO, “I expect your explanation immediately regarding the content of this document and Boeing’s delay,” as quoted by NBC News.
Things got a bit worse for the company after FAA Administrator Stephen Dickson just there was no way the FAA would approve the plane to fly again in the short term.
“If you do the math, it’s going to extend into 2020,” as quoted by CNN.
Shortly after, Boeing fired CEO Denis Muilenberg, noting:
“The Board of Directors decided that a change in leadership was necessary to restore confidence in the Company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders,” as quoted by MarketWatch.
Chairman David Calhoun will become the new CEO effective January 13, 2020.
At the moment, shares of BA are up another $5 a share, as the stock begins to pivot higher from triple bottom support dating back to August 2019. At the same time, there’s a rumor that Berkshire Hathaway is building a stake, acquiring a $5 billion position, as highlighted by Zero Hedge.
However, do keep in mind this is just a rumor at the moment – and may be the big reason why shares of BA are up more than $5 a share this morning.