Boeing bounces back

Article Excerpt

THE BOEING CO. $85 (New York symbol BA; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 756.2 million; Market cap: $64.3 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.boeing.com) had to ground all of its new 787 Dreamliner passenger planes in January 2013 after a battery problem forced one to make an emergency landing in Japan. The 787 uses advanced rechargeable lithium-ion batteries to power its electrical systems. These batteries were overheating, which increases the risk of a fire. The company has redesigned the battery and feels flights will resume in the next few weeks. The stock fell to $75 after the grounding but has rebounded strongly. That’s mainly due to Boeing’s quick response. Demand for the company’s other planes also remains strong. For example, Ireland’s Ryanair has ordered 175 of Boeing’s 737-800 jets. This deal is worth $15.6 billion, or 19% of Boeing’s 2012 revenue of $81.7 billion. The company will begin deliveries in…