BA call
We all saw Boeing (BA - Burn Notice call 9/15) continue to fall off a cliff for many days.
Within 24hours there were several YouTube videos about the potential issues with airliner engines that are made by 3rd parties. The retro-fit repairs would surely go to the engine manufacturers and the FAA made it clear the powder coating issue was a 'might' lead to some 'possible' weakness 'sometime' in the future.
Geez! You'd think that aircraft manufacturing processes would be a science by now or could someone in the FAA just be trying to protect themselves about an outside risk?
But the news still seemed to hit BA hard. It seemed to me that this news may have been leaked ahead of time that caused the 4 day sell off. With $2.2million to retro-fit each aircraft if and when different manufacturing process are devised and approved this sudden knee-jerk reaction may be excessive. When the general public got hear with the YouTube videos and minor news desk announcements only then did markets continue to get hit harder for a few more days.
Some we win and some we don't. But as I followed the 1 star rule not only was the loss absorbed, but Jeff's lesson to never over-trade was underlined. I may have lost a few bucks on BA, but a very valuable lesson was reinforced.
Martin
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