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Will Yet Another FAA Probe Take Down Boeing Stock?

By Tim Beyers and Erin Miller - Apr 21, 2013 at 11:12PM

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New 737 jets come under scrutiny.

The FAA recently ordered special inspections of parts aboard some 1,000 Boeing (BA -4.95%) 737 jetliners, The Wall Street Journal reports. The parts secure horizontal stabilizers that determine the up-down movement of the nose of the aircraft.

While regulators aren't taking jets out of service to comply with the order, investors can hardly be blamed for being nervous in the wake of troubles with the 787. Leading 737 filers such as Southwest Airlines (LUV -1.95%) and United Continental (UAL -4.98%) should remain unaffected.

The good news here is that Boeing was ahead of the problem. In fact, the FAA's mandate is at least partly derived from Boeing-recommended fixes. Taking corrective steps early is exactly what investors should expect, and it should pay off over the long term, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following interview with The Motley Fool's Erin Miller.

Please watch this short video to get Tim's full take, and then leave a comment to let us know whether you'd buy, sell, or short Boeing stock now, and why.

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Stocks Mentioned

The Boeing Company Stock Quote
The Boeing Company
BA
$125.52 (-4.95%) $-6.53
Southwest Airlines Co. Stock Quote
Southwest Airlines Co.
LUV
$44.23 (-1.95%) $0.88
United Airlines Holdings, Inc. Stock Quote
United Airlines Holdings, Inc.
UAL
$44.63 (-4.98%) $-2.34

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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