The bad news for Boeing (BA) continues, with the latest news coming from Japan where a Boeing 787 was forced to make an emergency landing. We have seen numerous problems with the 787 Dreamliner in recent days, including a fuel leak, a battery fire, brake problems and wiring issues.
About half of the all Dreamliner jets that are currently operating are located in Japan, because there are so many Dreamliner jets operating in Japan, the move to ground the planes is major. Boeing has a big opportunity to address the problems in Japan, but if it fails to restore the confidence of its Japanese customers, the plane could have trouble selling worldwide.
The Dreamliner is Boeing's flagship jet, so the situation is an urgent one. Realizing the severity of the situation, investors have been selling the stock, pushing it down about 3.65% over the last five trading days.
The real question is whether or not we should view the recent stock action as a buying opportunity, or avoid the stock all together.