CNBC’s Jim Kramer on Monday advised investors to wait to buy back shares of Boeing before the aircraft maker’s latest regulatory issue.
Shares of Boeing plunged more than 3% to start the week following a statement from the Federal Aviation Administration that it could take at least another year for approval of its 777X jet, focusing on a number of technical accidents with long-haul aircraft. But despite Monday’s decline being Boeing’s biggest one-day fall since May, Kramer thinks stocks could buy lower.
“Federal aviation management seems to be taking a much tougher path with Boeing’s new aircraft,” Kramer said.Crazy money. “” If you like Boeing, please let your powder dry. I think you can get the best opportunity to buy at a low level. “
With CFO Greg Smith about to retire, Kramer suggested that Boeing could feel the need to issue additional shares in the company, which could reach share price.
“The company is adamant that there is no need to worry about the timeline being pushed back … but I have to tell you that this is more about the tenant. The FAA really hates them,” he said. “After all the recent security issues, can you blame them?
The delay adds a new problem to Boeing’s plate, as the popular 737 Max has jockeys to get approval to fly back to China, Kramer noted.
China became the first country to land jets in 2019 after being involved in two fatal crashes in five months. Biden is working with White House Boeing to help seek approval from Chinese regulators six months after Western nations allowed Max jets to return to the skies.
– Reuters contributed to this report.
Disclosure: Kramer’s charity holds shares in Boeing.