Today we are watching…
1. Boeing (#boeing)
After the Boeing 737 MAX crashed and burned earlier this year, a worldwide grounding of the aircraft forced CEO Dennis Muilenburg to cut production 20% from 52 to 42 planes per month. In a blow to the industry, a total, temporary factory suspension of the MAX is now being discussed after authorities failed to clear it for take-off this December. That would dent confidence even more, frustrate scheduling, and anger carriers with hundreds of planes still sat on the tarmac. However, Boeing insists this is the “most efficient” option for investors. The catalyst for a bet on Boeing is clearance to fly. Federal Aviation Administration chief Steve Dickson just dropped a truth bomb, though. He says, “if you just do the basic math, it’s going to extend into 2020!”
2. Hexo Corp (#hexo)
Pot stocks were on fire throughout 2018, when relatively little was commercially known about recreational cannabis. With the industry in rapid growth mode and valuations climbing, the onus was on state governments to start providing answers. In 2019, they duly did. Some Canadian states were lenient on retail store openings. Others were far stricter. Supply chains became bottlenecked as a result, and despite consumer demand prompting producers like Hexo to grow tons of the stuff, much of it went to waste. Today, Hexo will provide an update on the situation to strong-willed shareholders. It’s reporting first-quarter earnings results and is slated to do even worse than analyst forecasts. Those sit at a nine cent loss per share on $12 million in revenue.