Buying Boeing Now Requires a Leap of Faith

Until a few weeks ago, I thought Boeing(BA Quote) was a terrific play. In fact, I thought the economic slowdown had been more than factored into the share price. But now, I'm not so sure.

I don't want to pounce on these guys simply because they are an easy target. To the contrary, I think Boeing is a terrific long-term play. History has shown that they have the engineering capability, management, and deep pockets to provide investors with a healthy return over time. It's just that I think a better entry point lies down the road.

We have no idea how long this battle against terrorism will last. Nor do we know how it will affect the travel plans of most Americans. In other words, there's too much uncertainty.

Again, this company has staying power. Its clean balance sheet and ability to generate cash flow consistently, as well as the growing demand for aircraft both here and abroad, suggest that Boeing will prevail. But again, it's the unknown that scares me.

Will the congressional bailout of the airline industry work? If not, which companies will fold and which will merge? Can anyone say with certainty that the layoffs already announced by United(UAL Quote), Continental(CAL Quote) or Delta(DAL Quote) (just to name a couple) will be enough? And how will further layoffs and increased security costs affect the airlines and the plane makers?

No one knows.

Boeing is a terrific company that will have its day in the sun. I just can't recommend this stock to investors now.