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Not a bad move considering Dow and S&P are at all time highs.

by game_the0ry 2y ago

metalliqaz 2y ago
but Boeing's stock is down and selling $10B in shares will drive it down further
- sidewndr46 2y ago
  so? you just reverse stock split until your stock price is back to normal.
  - s1artibartfast 2y ago
    Stock price is irrelevant in isolation.
- paulpauper 2y ago
  It is already priced in and the stock is clearly not lower. Selling stock to raise capital is possibly good news compared to alternatives
prewett 2y ago
That's a terrible reason to buy a company, it's completely unrelated! You could just as well argue it's a terrible time to buy a struggling company, because the market is likely to drop, so you should have waited until then. The real question is, is this company a good quality company likely to grow in the future? (Or if you are the gambling type, "do I think this stock will go up?") The, secondarily, "is the price reasonable?" I think it is clear the Boeing is not a good quality company at this time, and the fact that they have a cash-flow problem is not encouraging, since it means they are one step away from bankruptcy restructuring.
- michaeljx 2y ago
  I think his point is that it's a bullish market, so they will find plenty of buyers
- bell-cot 2y ago
  > That's a terrible reason to buy a company... Perhaps. But it is an excellent reason to sell a company - which Boeing is doing, by selling shares.
- s1artibartfast 2y ago
  I read it as it being a good time for Boeing to sell stock, given that the market is so high. If you have a company and you think it is overpriced, that means it's a good time to issue stock and convert share price to cash. Tesla is one of the best examples of in history of companies doing this. They used the inelasticity of Tesla stock price to raise tens of billions of dollars in secondary stock offerings after their IPO
  - game_the0ry 2y ago
    > I read it as it being a good time for Boeing to sell stock, given that the market is so high. This is exactly what I meant.

Not a bad move considering Dow and S&P are at all time highs.

metalliqaz 2y ago

but Boeing's stock is down and selling $10B in shares will drive it down further

sidewndr46 2y ago
so? you just reverse stock split until your stock price is back to normal.
- s1artibartfast 2y ago
  Stock price is irrelevant in isolation.
paulpauper 2y ago
It is already priced in and the stock is clearly not lower. Selling stock to raise capital is possibly good news compared to alternatives

prewett 2y ago

That's a terrible reason to buy a company, it's completely unrelated! You could just as well argue it's a terrible time to buy a struggling company, because the market is likely to drop, so you should have waited until then. The real question is, is this company a good quality company likely to grow in the future? (Or if you are the gambling type, "do I think this stock will go up?") The, secondarily, "is the price reasonable?" I think it is clear the Boeing is not a good quality company at this time, and the fact that they have a cash-flow problem is not encouraging, since it means they are one step away from bankruptcy restructuring.

michaeljx 2y ago
I think his point is that it's a bullish market, so they will find plenty of buyers
bell-cot 2y ago
> That's a terrible reason to buy a company... Perhaps. But it is an excellent reason to sell a company - which Boeing is doing, by selling shares.
s1artibartfast 2y ago
I read it as it being a good time for Boeing to sell stock, given that the market is so high. If you have a company and you think it is overpriced, that means it's a good time to issue stock and convert share price to cash. Tesla is one of the best examples of in history of companies doing this. They used the inelasticity of Tesla stock price to raise tens of billions of dollars in secondary stock offerings after their IPO
- game_the0ry 2y ago
  > I read it as it being a good time for Boeing to sell stock, given that the market is so high. This is exactly what I meant.