23 March Watchlist 👀
Today we are watching…
1. Boeing (#boeing)
There’s talk about nationalizing Boeing, and this is serious talk. The company’s management team has been asleep at the wheel over the past few years, culminating in the commercial plane maker’s worst crisis in history. The firm has a chronic cash shortage with the 737 MAX out of action, it’s lost the trust of airlines the world over following two crashes, and now it’s set to need an inconceivably big bailout from the government amid the coronavirus. It’s asked for $60 billion. If it doesn’t get the money, it will surely go bankrupt, says Superinvestor Bill Ackman. If you were the President, what would you do?
2. Sainsbury’s (#sains)
Supermarkets are offering health workers dedicated shopping slots, right after shelves are restocked. There are also dedicated hours for vulnerable people to the virus, and all this has thrown consumer behaviour upside down. When earnings next come due for Sainsbury’s, footfall will be difficult to read, as in all countries, certain people realize they need to stockpile in anticipation of a lockdown. This quarter will test the capacity of supermarkets to deliver online shopping to vast numbers of people, but investors can’t decide if it’s going to be possible. If it is, supermarkets are a safe haven!