Noted for his strange – and often worse – stock picks, Jim Cramer has yet again doubled down on his arguably most controversial recommendation of 2024.
In a tweet published in the early hours of October 29, the former hedge fund manager and energetic host of Mad Money endorsed investing in the collapsing aeronautics giant Boeing (NYSE: BA).
Specifically, Cramer described BA shares being priced at $143 as better than he expected and at ‘a very nice price.’ He also added that traders might try buying Boeing stock slightly above, but only with a limit order.
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Apparently, Jim Cramer seems to think Boeing’s woes may soon come to an end and that the shares could enter a rally. A purchase at $143 would indeed be at a discount compared to BA stock’s latest closing price of $150.69.
Boeing raises $20 billion to stave off financial issues, rating downgrade
It is also the price at which the aeronautics giant’s most recent share offering – simultaneously one of the biggest such offerings in history – was conducted.
Specifically, Boeing raised more than $20 billion to offset its losses from a deluge of accidents, mishaps, loss of prestige, and the ongoing worker strike and to prevent a rating downgrade. It involved 112.5 million common shares and about $5 billion worth of convertible stock.
Investors who participated and purchased BA stock at the ‘very nice price’ are, at press time on October 29, in the green, but the Tuesday pre-market does cast some doubt if this will remain the case for long.
In fact, the extended session between Monday and Tuesday saw Boeing shares drop 1.74%, adding to the overall decline, which had already seen the aircraft firm fall 40.15% since the start of 2024.
Cramer’s unfortunate history of recommending BA stock
Jim Cramer has been recommending investing in BA stock both before and after the company’s most recent round of woes. Early in 2023, he called the firm ‘incredible’ – and investing $1,000 at the time would have lost some $259 by October 10 – later in the same year, he said that 2024 would be Boeing’s year and early this year, he opined the value of the company’s stock is unreasonably low and must go up.
Earlier this month, there appeared to be a light at the end of the tunnel for the aircraft company as there was a chance that the striking workers would vote in favor of a new deal proposed by the firm and a significant order of aircraft from the United Arab Emirates was confirmed.
Many of these hopes were squashed in late October as the union rejected the proposal with a 64% majority, explaining that the offer was simply not enough to make up for 10 years of stagnant wages and the continuous removal of various benefits.
The workers pledged to continue negotiating in good faith until they ‘have made gains that workers feel adequately make up for what the company took from them in the past.’
In addition to the strike-related problems and the aircraft malfunctioning issues, Boeing’s troubles have again extended into space as one of its satellites broke up in space earlier in October.
