Boeing shares in 2006

Share price was around 85 US dollar in May 2006. That was up a lot since 2005.

760,550,000 Outstanding shares on May 23th 2006.

At the moment (2005) Boeing is doing 60 billion turn

over a year. Net income would be around 2 billion (profit) or 2,5 dollar a share. With gives a price earnings ratio of 40. About half of that is payed as a dividend. Microsoft makes much more profits.

At the moment they are selling a 1.000 airplanes a year for future delivery. They delivered a lot less in history.

An widebody airplane at the moment costs between 100 and 300 million for a widebody. So, if the average aircraft would sell 100 million.

 

The next 20 years they might produce 20.000 airplanes sold at 100 million an airplane.

With 760,550,000 shareholders.

If you invest 6.900 euro in Boeing shares in 2006. It would give you 100 Boeing shares.

Lets forget the millions to simplify things at Boeing.

There would be 760 shareholders if planes were sold at 100 dollar. Profit on one airplane could be between 5 and 10 dollar.

A 1.000 airplanes a year would give of profit of between 5.000 and 10.000 dollar for 760 shares.

Lets say 7.500 dollar of profit a year for 750 shares, so 10 dollar a share.

So if you own 100 shares you would get 1.000 dollar of profit. Dividend could be around 500 dollar. Lets compare that to buying a place for parking a car in Antwerp.

 

Fundamentals

- It's not easy to start civil aircraft production and Boeing hardly has many competitors for at least the next 5 to 10 years.

- The Boeing company has been very good in the production of the finest aircraft in the world and at the moment they have great products.

- The demand will be there the next 20 years: airlines need aircraft.

- Seattle is a very creative and competitive city.

So, if you buy Boeing stock in 2007 ... there should be no great risks involved.

by 2747.com / 2747 / buy / 2006 / share / Boeing