CNBC’s Jim Cramer advised investors Monday to wait for Boeing shares to pull back further before buying the drop in the aircraft maker’s latest regulatory issue.
Boeing shares fell more than 3% earlier in the week after reports from the Federal Aviation Administration told the company that approval of its 777X jet could take at least another year, which drew attention to several technical glitches with the long-haul aircraft. But while Monday’s decline was Boeing’s biggest single-day decline since May, Cramer believes the stock can be bought at lower levels.
“It looks like the Federal Aviation Administration is going to take a very hard line with Boeing’s new aircraft,” Cramer said on Mad Money. “If you like Boeing, please keep your powder dry. I think you have a better chance of buying it at lower levels.”
With CFO Greg Smith retiring, Cramer suggested that Boeing may feel the need to issue additional shares in the company, which could depress the share price.
“The company insists that there is no need to worry about the postponed schedule … but I have to tell you it’s more about the tenor. The FAA must really despise these guys, ”he said. “Can you blame them after all the recent security problems?
The delay adds a new problem to Boeing’s license plate as it involves flying the popular 737 Max sold again in China, noted Cramer.
China, a key market, became the first country to drop the jets in 2019 after being involved in two fatal crashes within five months. The Biden White House is working with Boeing to get Chinese regulatory approval six months after Western nations cleared the Max jets for return to heaven.
–Reuters contributed to this report.
Disclosure: Cramer’s charitable trust owns shares in Boeing.
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