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Will Boeing Crash-Land or Take Off?

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Most of the turbulence is in its rear-view mirror.

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Is it me or is the week going by super fast? It feels like I'm in that Adam Sandler movie, Click. Monday morning seems like it was five minutes ago and here it is, hump day already.

Asian stocks rose yet again. The Hang Seng was up 2.07% and the Nikkei was up 1.11%. European stocks were in positive territory earlier this morning too. And here in the US we're currently trading lower.

Here's what I'm focused on this morning:

Boeing (BA):
Preparing for a crash-landing or an imminent departure?

In a release on Tuesday, the airplane maker stated that "it expects a pre-tax charge against third-quarter results of approximately $1.0 billion or $0.90 per share due to increased production costs and the difficult market conditions affecting its 747-8 program."

1. I think its recent woes (i.e. delays and such) shouldn't be the predominant focus right now.

2. The company is so much larger than all of that hubbub, and at the end of the day, it's not like airlines have too many other places to go shopping for their flying vehicles. Yeah, I know -- there's Airbus, and it's certainly got some flash. But come on folks: Boeing is the dominant player that for countless years has gotten the job done. I really believe its going to see some big growth in the future.

3. Everyone seems to forget (but they shouldn't) about its position in defense products. These are likely to be needed because I don't imagine we'll see the world sitting around a smoldering fire pit and roasting s'mores together in our lifetime.

4. I suspect most of the turbulence is in the proverbial rear-view mirror and a new high not too far down the line is likely.

Yum Brands
(YUM):
The fast-food giant was out with its third-quarter numbers after the bell last night. The Louisville, Kentucky-based company put up $0.70 excluding items, which was a couple extra-crispy KFC buckets ahead of the $0.58 the Street had been looking for.

To boot, the following line in the release caught my eye: "The Company raised its full-year 2009 EPS forecast from $2.10 to $2.14 per share or 12% growth prior to special items, driven by stronger-than-expected full year performance in China and a lower-than-expected full year effective tax rate."

Some other thoughts:

1. It's done a dandy job knocking out estimates over the past year or so and I have this gut feeling that the '09 forecast it offered up above is going to turn out to be on the conservative side.

2. And although I've been more cheesed up by Ronald & Co. over at McDonald's (MCD), it's hard to look past Yum given the recent dividend announcement and share repurchase authorization.

3. I feel pretty confident that the shares will hit a new high in the not-too-distant future.

For my previous take on Yum, click here.
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No positions in stocks mentioned.

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