Spiros Segalas Comments on Boeing

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Feb 10, 2020

Boeing (BA, Financial) declined on news that it is halting production of the Boeing 737 Max 8 jet as it waits for recertification. The aircraft has been grounded since two tragic accidents, the most recent in March 2019. We continue to gauge the impact of the shutdown, but without more detail on the duration of the suspension and the supplier terms, it is difficult to quantify the economic impact to Boeing and its suppliers. The recertification process is taking longer than anticipated, but we expect that once the issues are resolved, Boeing’s strong brand, market position, long-term order backlog, and balance sheet will come to the fore.

From Spiros Segalas (Trades, Portfolio)' Harbor Capital Appreciation Fund fourth-quarter 2019 commentary.

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