Boeing (BA) is a slow motion train wreck.
Just weeks ago, the stock came under pressure after revealing 2016 e-mails 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 in disclosing the document to its safety regulator,” as quoted by NBC News.
All after two fatal crashes in the Java Sea, and the Ethiopian plane downed in March.
After a slight recovery, the stock again fizzled and died.
While there’s hope the BA stock can hold triple bottom support dating back to August 2019, we’re not so sure. At the moment, it’s down another $5 a share on news the company plans to suspend production of the 737 Max starting in January 2020.
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 this year.
In fact, Dickson said, he could not provide a time frame for when the plane will get approval, adding there are 10 or 11 different steps in the certification process that are yet to be completed. “If you do the math, it’s going to extend into 2020,” as quoted by CNN.
At the moment, the stock is being hit with massive turbulence, with no signs of a safe landing.