We're buying more of a beaten-up stock before another overhang is lifted — SkimNews
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- Jim Cramer's Charitable Trust bought 35 Boeing shares at roughly $191.16, bringing its BA holdings to 620 shares and raising its portfolio weighting from 2.8% to 3%
- The trust funded the Boeing purchase using cash proceeds from a TJX Companies trim executed earlier Monday
- Reuters reported the FAA could approve Boeing's 737 Max 10 as soon as this week, with certification this month enabling jet deliveries to customers to begin in 2027
- The Max 10 accounts for roughly one-third of Boeing's 737 Max backlog and is the largest and only variant in the family not yet certified by the FAA, which approved the smaller Max 7 in August
- Boeing has stacked several positive developments in recent weeks, including averting a white-collar union strike, winning a multi-billion-dollar U.S. Navy contract, and an FAA ruling that a Max software glitch was not a flight-safety risk
- Boeing stock remains about 20% below its Aug. 5 close, which Cramer attributes largely to rising oil prices and interest rates despite the string of catalysts
Why it matters: The Max 10 represents roughly one-third of Boeing's 737 Max backlog, so FAA certification would unlock delayed deliveries starting in 2027 and give investors measurable confidence in Boeing's free cash flow generation — the metric Cramer calls most important for evaluating the company. With Boeing still trading 20% below its Aug. 5 close despite averting a union strike, winning a multi-billion-dollar Navy deal, and clearing a software-glitch FAA hurdle, the trade bets the market has already priced in the near-term headwinds from higher oil and rates but is underpricing the certification catalyst.
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