Today marks the start of the two days of testimonies that are schedule to be made by Chief Executive Dennis Muilenburg of The Boeing Company (NYSE: BA).
The discussion to be had between U.S. Lawmakers and Boeing CEO involve the details related to the two fatal crashes of their 737 MAX aircraft. The two crashes together resulted in a total of 346 lives lost which demanded calls for reform in the industry.
The hearing is schedule to start at 10 a.m. EST and Muilenburg has fully acknowledged mistakes that were made by the company in a written testimony that was released on Monday.
The testimony states “We have learned and are still learnings from these accidents. We know we made mistakes and got some things wrong.” The real question lies in determining when the mistakes were initially caught? Could the mistakes have been fixed to prevent the devastating damage?
Early this month Muilenburg was stripped of his status of Chairman of the Board. This was a decision made to allow for Muilenburg to focus on the 737 MAX in recovering and bringing the aircraft back into service.
On Wednesday after the meetings with U.S. Lawmakers Muilenburg is schedule to speak before the U.S Infrastructure Committee and the House of Representative Transportation.
The main objective on the meetings set to take place involve around the lives of those who were lost in the accidents.
Michael Stumo, The father of Samya Rose Stumo, one of the individuals who passed away on Flight 302 Ethiopian Airlines Crash back in March. The family states that they plan on making sure the individuals at the hearing see the faces of the loves ones who were lost.
This idea is to ensure that the focus of the conversation remains on protecting and caring for human life. The audience has felt that this is a greater issue to focus on over the political or engineering issues at hand. The core issues to be discussed is the ethical acceptance of errors disregarding the safety of human life.
Overall Boeing is feeling optimistic. They are accepting responsibility. They are working diligently to find the flaws in their system and making quick changes to adjust. They understand the severity of the situation and are working hard towards improving the current standard to regain the trust of the public.
Boeing understands that it will be a long process to get the 737 MAX flying again. Once we have the Airworthiness Certificate from the FAA we then need to regain the trust of the flying public.
Many family members have grown fearful towards the model of airliner and have refused to fly the aircraft. Boeing has a long way to go before not simply getting the bird flying but selling the seats on the plane.
It’s not looking great for the stock price of Boeing right now. We are seeing price on a major down trend pushing down to new lows after being unable to break above the $350 price level.
As more airlines are looking to purchase competing Aircraft future sales for Boeing are looking to be reduced as compared to previous forecast.
The major increase in selling volume prior to earnings is not a great sign. This is showing institutions closing their positions before the earnings release to mitigate potential loss towards the downside. Are they able to see something we don’t?
It is important to take note of signs of large institutions making decisions by large volume spikes. Keep in mind that these organizations have millions upon millions of dollars at hand and often hold hundreds of shares in the companies they invest in.
As they enter and close posititions we see large spikes in volumes comes as they hold a large quantity of shares. Trading stocks with large daily volume are ideal targets for large institutions.
Being that they like to enter with large positions they tend to stay away from stocks with low trading volume as any decisions that they would make would greatly affect the price of that stock. Trading stocks with low volume expose your account to potential risk if there is a surge in trading volume.
What are your thoughts on Boeing during this next week during the Testimonials with U.S. officials? Leave your ideas in the chat box on the side and I will get back to you as soon as possible!
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