Each football team has a playbook filled with tons of plays for the offense, defense and special teams to learn. On defense, the idea is to be prepared for whatever the offense throws at you and to shut them down. On offense, it's to catch the defense off-guard or to outmuscle them. It's a huge chess match with live human beings trying to wear each other down. On offense, I enjoyed the passing plays the most -- the ones where I could catch the ball with some room to run. I caught my fair share of passes, but sometimes the game dictated some smash-mouth football. You had to put your head down and run right at the defense. Barrel them over. Push them back. Often one of the least exciting plays for fans, but one of the toughest and grueling plays is to have your running back charge right up the gut through the middle of the offensive line. When they charge straight through the middle, sometimes there isn't much surprise and hardly ever much room to run. It's pure power vs. pure power and that's when people get dinged and worn down. The reason I love the play right up the middle is because it's no nonsense. It's generally won by the more powerful player or squad. I like to apply that same philosophy to stock-picking as well. I like to go with companies I know are going to go full steam ahead. I like Boeing ( BA) a lot. This is a solid company that makes products that will be sold even in a down environment and has been beaten down.
The jet-maker was first hit for delays in its new aircraft the Dreamliner. More recently, it's been hurt by a since-resolved strike among its workforce. All in all, I think it's safe to say the metrics are here and the company is ready to go full barrel ahead. Look at the stat sheet. Its stock was recently trading at almost $41. That's only about a buck above its 52-week low of $39..99, which it hit on Oct. 16. On the upside, it has hit as high as $94.60 within that time frame. The stock has shed 54% of its value in the last year. It has a fat return on equity of almost 50% and a forward price-to-earnings ratio of only 6.47, which is very low. With revenue of $65 billion, $4.8 billion in the bank and $3.13 billion in operating cash flow, this company has it all. They can weather a tough market and are poised to move full-steam ahead. Now, I'm not saying that Boeing is going directly up. It may get stopped at the line of scrimmage or even thrown for a loss from time to time. Anything can happen in this market. But I am banking on the fact that it is a solid company that should run right up the gut, meaning I expect it to move forward. Keep moving the chains.