Listen: Boeing, Boeing Commercial Airplanes, Boeing Filipo discussed on CNBC's Fast Money
"On Boeing Filipo has that Phil Kharaldine. Chief Engineer for Boeing Commercial Airplanes. John Hamilton is resigning from the company. Hamilton was most notably most recently known and as the person who was sitting next to Dennis Muilenburg when he was on Capitol Hill for a couple of congressional hearings and he was asked a number of questions about engineers ears or employees at Boeing expressing concerns about the development of seven thirty seven Max so again John Hamilton. Chief Engineer for Boeing Commercial. Airplanes is is resigning. The company says he planned to retire last year. He pushed it off. They said to work on helping. Get the Max back his departure now. The latest executive to to leave the company as they continue to wrestle with the seven thirty seven. Max and this Max SAGA WHATEVER YOU WANNA call it crisis. That's been going on since March. Well it's is continuing to have an impact this time. It's in the forum of United Airlines Ordering Not Boeing airplanes but Airbus airplanes. One factor is that Boeing did not have a plane to compete with the eighty three twenty one x l R. That is a long range plane. That will be replacing a Boeing seven and fifty seven's for United Airlines. So now you've got a number of airlines and including several in North America United American frontier. Jetblue they've all now ordered this this new airplane from Airbus. Because they can't order one from Boeing Boeing doesn't have a model to compete with the xl are it was widely expected did they would announce one perhaps at the Paris airshow earlier this year but clearly. They're focused on the Max right now. And they've said they have not made a decision on quote a middle market airplane the plane so as a result you have Airbus racking up another order they again Boeing says no decision has been made on whether or not it'll come up with a middle market plane. One last thing guys is take a look at shares of Airbus versus Boeing. This year and you will see a dramatic split between the two shares and people will say well look Boeing still holding him. Well despite the fact that the Max is not being delivered. But here's the difference guys. Look at the orders that have been racked up this year. Seven hundred twenty. twenty-one by Airbus negative ninety-five by Boeing that says it all why investors at minimum have said. I'm going with Airbus for the foreseeable. Future as supposed to Boeing field. That Philo Tim Right. So we've got executive departures. Obviously some order disparity. We don't know what they're going to go these carriers later on that's been Kramer's big point point. Why is it hanging in there? Well I think there's a couple of reasons including the fact that it is due -opoly and there's not a lot of other places to go and that the you know the orderbook for Boeing still is very robust a bust and the company. I think has been reasonable and guiding expectations on on the Maxim coming back online. They've got four hundred planes in inventory and I think you're going to start to see them. Crank come out united and a couple of other air handlers. I think people are also very critical of Ahah being so exposed to Boeing and give give Delta a lot of credit for not having any exposure. Bosio me I think some of this is also about united trying to throw a little. Something back at Boeing. Because there's been a very difficult for the united you know it's really interesting is that I could make this analogous to the China supply chain issue that what Tim just said. That companies are trying to decrease their dependency on Boeing. And that's going to be going forward. That's only going to the increase. So I think that Boeing hung in there but ultimately it's probably a tremendous head win two to five years out that we're not even thinking. Where are they going to go? And I I hear you. But again that relative value chart and that chart that's been priced in yesterday's chart. It's not because there's still a lot of stuff that's hanging out. There wasn't enough enough of an executive departure is they're going to be deeper cuts through the executive team. Did they want the CEO's head at this point where where are they going to go through this. So I don't I don't think it's over by a long shot so I'll just going to say basically I look at that chart from Phil and I immediately say you know what I understand. The argument you guys are having right. Now Look at Boeing. What what else could they throw at them at this point? That's my what else is left to throw at them. So if people got different different playing the same way that China wants a trade deal is is over apple still migrated away from China. We're still going to be a host of other company down. Some some companies are already thinking about how to diversify the supply chain. Now you're going to see where their lines diversifying diversifying away from from. What was going to be something that we're always going to be watching? I think Boeing will stand very strong with that. You still look at their backlog. It's unbelievable right. I mean so. It's something where I take a look at it and you do obviously now which is a little bit different than leaving China to go wherever you want to monopolize South Outta the office was but that's over. Let's get back to earnings restoration hardware. He's in the red after its results. Make Tyrrell's said Sackett. HQ Hey meg. Hey Carl talk off slightly after big beat on the bottom line but they did have a huge run into the quarter helped of course by Berkshire hathaway disclosure of a six and a half percent stake last month. Companies saying it's pricing power. This quarter holding up. While even in the face of those China tariffs zero was talking earlier about throwing shade. Well listen to the CEO. Gary Friedman evoking we work and his letter about our ages third quarter earnings. Oh growth without profitability has been unjustly rewarded valuations. Were based on the misplaced belief that an online retail business is more profitable than a physical store. He goes onto say quote traditional retailers hoping for the same favorable evaluations and in some cases driven by the fear of not being viewed as fashionable by millennials have allocated the vast majority of their capital capital two unnaturally grow their digital business. This has resulted in shifting not lifting sales online at greater costs driving down margins while physical stores have been left to rot what we on the other hand he says have chosen to take the road less traveled and believe like Robert Frost that it will make all the difference guys taking a bit of a victory lap there as our Asia stock. It has been doing quite well this year. Frost reference very cheap to sink you. Shouldn't you shouldn't Invoke Robert Frost the geniuses geniuses that is not mentioning. The guy's name right when he screwed up the whole thing by saying like Robert Frost he'd lost. I'd saw the stock just on the back of that but I think sixteen sixteen times earnings. I think the stock is still relatively inexpensive and said a huge run a lot of it based off Mr Buffett's investment which may be him. Maybe one of his minions. It doesn't matter. I still think the stock goes higher. I understand why people are taking profits. Here think the stock is still keeping a crazy year for restoration hardware to the positive again up seventy percent. This year I I. The disappointment is that they reiterated this eight to ten eight to twelve percent long-term growth. I think people wanted to hear more than that But you get back to the valuation Seventeen Times Twenty Twenty one that this is not an an expensive stock and I think this is a stock that had been a huge benefit beneficiary of the tailwind in the housing markets and the home restoration markets. And I think these guys actually have a bit of a differentiated Brad. You've made the supply chain some exact. No one's better than than our H. E. exactly and they raised prices ahead of any tariffs so they got ahead of that ball and back in June. The stock jumped twenty three percent based on guidance based on beating on revs based on beaten on. EPS So I think a lot of this was positioning into this print. So when you look at it after hours ars it's down flat to down. I mean people are looking for his. Tim said a little bit more. Bang for your buck. And now it's time measuring stick of the economy. Really I mean let's think about this. Everything's expensive there. I don't care who you are expensive when you go to our age but it tells you a lot about the company and look at the SNP that moves with the SNP if the SNP gets hit hard for whatever reason we're going to go down as well and there will probably be opportunity to find took."