Porter Stansberry Profile picture
Jan 9 18 tweets 3 min read Read on X
A year ago @Porter_and_Co published a dire warning about a mega-cap American stock. This was the only mega cap stock we told investors to avoid. And it is no ordinary business. It is America’s most strategically important company. We said it would soon “collapse.”
Our January 27th 2023 headline? COMING SOON: THE BOEING COLLAPSE. How did we know? For the last 20 years there hasn’t been a company in America that’s embraced more bad ideas – from financial engineering to ESG – than Boeing.
In 1997, Boeing merged with fellow aerospace manufacturer McDonnell Douglas in a $13 billion stock swap. It was a match made in hell. Boeing was known for quality, and McDonnell was known for financial engineering – with a focus on cost cutting and the company’s share price.
Although the Boeing name survived, it was the McDonnell Douglas attitude that prevailed. McDonnell CEO Harry Stonecipher, who took over day-to-day operations at Boeing, immediately took a carving knife to Boeing's highly-paid engineering staff.
And in May 2001, Boeing management made a physical break with its engineers: manufacturing headquarters stayed in Seattle, while corporate moved to downtown Chicago, 1,700 miles away. That split symbolized the growing distance between builders and bosses.
To say that the company’s engineers were disenfranchised doesn't describe it: Boeing’s entire culture was erased.
CEO Stonecipher even bragged about what he’d destroyed: “When people say I changed the culture of Boeing, that was the intent, so that’s run like a business rather than a great engineering firm.”
Today both Boeing’s CFO Brian West and CEO David Calhoun are formerly senior GE finance people. And they’ve done to Boeing what they did to GE: Destroy the balance sheet.
From 2010 to 2019 Boeing spent $44 billion (!) on buying back its own shares, while adding $50 billion in debt. This reduced the share count by 23% and sent the stock price up 200%. But the underlying business...?
Bean counters can't build airplanes. And Boeing’s planes started falling out of the sky. As a result, free cash flow plunged to negative $4.3 billion annually by 2019.
Today bankruptcy grows more certain. Cumulative net income over the last three years is negative $20 billion. And the company has $52 billion in total debt. Interest expense is currently $2.5 billion a year, but will move much higher as Boeing's debt will be downgraded to junk.
But -- never fear! Investors have nothing to worry about with one of America's greatest and most important companies spiraling towards bankruptcy (like their planes spiraling towards the ground) because Stephanie Pope will save the day!
Stephanie Pope is the chief operating officer of Boeing. She holds a bachelor’s degree in accounting from Southwest Missouri State University. And an MBA from another intellectual powerhouse, Lindenwood University. She has zero engineering background.
Why would someone with this kind of background be placed in charge of operations of the world’s leading aerospace engineering firm? Maybe because she is the executive sponsor of Boeing’s Women Inspiring Leadership, a group dedicated to “increasing gender diversity awareness.”
Boeing’s planes keep falling apart. These outcomes are the results of years and years of bad ideas – starting with the intentional destruction of Boeing’s engineering culture, followed by GE-style financial engineering, and now the company’s full embrace of modern Marxism – ESG.
Like we predicted a year ago, Boeing is going to collapse. When its debt gets downgraded, the stock will drop by more than 50% to below $100. And then, just like we warned about GE and GM, this once impregnable icon of capitalism is heading for bankruptcy.
Is this just piling on because of a freak accident? Nope. We reiterate our call two weeks ago. On December 22nd Porter & Co. updated its “Naughty List” – a list of 10 stocks we predict are going “straight to hell.” The first company on our list? Boeing.
Boeing is a wonderful metaphor for our entire society. When we promote people because of their political views (or their race, or their sex) instead of their competencies, we get planes that fall out of the sky. When will the madness end...?

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More from @porterstansb

Jan 23
I want to tell you what happened – a stock jumped 150% yesterday. The reason isn’t obvious. This is, without a doubt, the most valuable information anyone will ever give you for free in your life. Which is why you’ll ignore it.
Ironically, for maybe 3 or 4 people, this thread will change their lives forever – completely change everything for them financially. And even though that is undeniably true (as you’ll see) virtually everyone who reads this thread will ignore it
Yesterday shares of Sagimet (SGMT), more than doubled. The stock, which had closed under $7 the day before, closed over $18 yesterday. The shares are now up 150% since we recommended the stock ten days ago in the newest publication at Porter & Co, my private research company.
Read 28 tweets
Jan 19
St. Paul's Update Part III. I'd promised a "bombshell" disclosure today -- something I believe the school would find so embarrassing it would immediately be forced to fire St Paul's President Clark Wight.
But, first, I want to make a few things clear. My children have attended St. Paul's for a combined 17 years. We -- my ex-wife Andrea and my children -- love St. Paul's and the community of the school. And we have given generously to the school for many years.
The school has supported us and our children in many ways. And we are grateful. Likewise, being from out of state, it was the St. Paul's community that really made Baltimore home for us.
Read 18 tweets
Oct 21, 2023
Last part... continuing my 2013-published The Wages of Obama's Sins my predictions about what Obama's unprecedented government spending, deficits, and monetary manipulation would mean for our country.
You might wonder, given the accuracy of my 2013 economic, political, and cultural predictions, what was I recommending investors do...? Buy capital efficient businesses, own some gold, and short Treasury bonds (short TLT over $100). Took a while for that bond short to pay off!
Specifically I recommended a slew of high quality P&C insurance companies ( $WRB, $AFG, $TRV, $CB) and Allegany (which was later purchased by Berkshire at a nice premium.)
Read 10 tweets
Oct 21, 2023
Continuing my 2013-published The Wages of Obama's Sins my predictions about what Obama's unprecedented government spending, deficits, and monetary manipulation would mean for our country.
#3. As the government poisons the economy by ruining our money and destroying our credit... it will become more and more difficult for politicians to deliver on any of their promises to the poor.
Doctors and hospitals will prove to be unable to meet the demand at the price that's set by the government, as happens in every state-led health care system in the world. And it will lead more and more doctors to quit... and more and more patients to die unnecessarily.
Read 13 tweets
Oct 21, 2023
Continuing my 2013-published The Wages of Obama's Sins my predictions about what Obama's unprecedented government spending, deficits, and monetary manipulation would mean for our country.
#2. All other democracies that have faced similar financial problems have all gone down the same path of denying the extent of their financial obligations and turning to "alternative" methods of financing their debts.
This has always led to inflation, economic instability, and, eventually, political instability. I believe the same thing will happen here, especially because all the actions our politicians are taking follow the "script" so closely.
Read 11 tweets
Oct 21, 2023
On Dec 31, 2013 I published The Wages of Obama's Sins. The letter was a prophecy of how gov spending, financed by deficits and inflation of the money supply, would send our county into an economic collapse. I wrote:
Since 2008, when President Obama was elected, the official, net public debt of the U.S. federal government has increased by $5.5 trillion. That's more than double the size of the total net public debt of the U.S. in 2007, the year before Obama was elected ($5.03 trillion).
These overwhelming public financial obligations are completely unprecedented in the history of our country, outside of the two major global wars we fought in the 20th century.
Read 18 tweets

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