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Sep.28
9:10 PM ET
Monday, 28 Sep 2009
Cramer Crashes With Boeing Call

It was mea culpa Monday on Mad Money this evening, as Cramer atoned for some of his most recent, and biggest, gaffes. These are the recommendations he got wrong. The first? A certain aircraft manufacturer that had been promising The Next Big Thing for some time, but hadn’t yet delivered. He expected, not only an announcement of the launch, but the stock to ramp as a result. Too bad it didn’t turn out that way.

Boeing [BA  Loading...      ()   ] had been delaying the release of its much-anticipated 787 Dreamliner over and over … and over … and over … you get the point. The constant postponements had the potential to make an embarrassing and long-running joke of the company. So much so that Wall Street had all but come to expect them. But some analyst research had predicted the plane would finally take flight at June’s Paris Air Show, and Cramer jumped on it. He urged investors to trade the event in hopes of turning a quick profit.

A potential “Lindbergh moment,” Cramer said, became a “virtual Hindenburg” when the Dreamliner failed to show. Earnings estimates were cut, and the stock tanked. That’s when the Mad Money host realized he’d broken one of his cardinal rules by turning an investment into a trade. Boeing wasn’t a play on just the air show. It was a long-term buy on new, multiyear aerospace cycle that was just revving up.

“One that would have been irrespective of exactly when the Dreamliner flew,” Cramer said.

Whether its AMR’s [AMR  Loading...      ()   ] new credit line, the weak dollar allowing Airbus to buy more Boeing planes or a recent spat of M&A activity, signs point to the industry’s resurgence. A better call from Cramer, then, would have been to buy Boeing on any weakness. That would allow for great entry points in a stock that should trend higher as the sector does. In fact, that’s what he recommended to viewers on Monday’s show.

“As long as this stock stays in the low $50s or below,” Cramer said, “anytime you can buy it at a 3% [dividend] yield or better, I think you have a winner.”

Call Cramer: 1-800-743-CNBC

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