ANALYSE THIS: Luke McMahon
We analyse research & investment analyst at Glacier by Sanlam Luke McMahon
If someone came to you tomorrow with R100m to invest in just one company, which would it be? In the old days, some pilots had a saying: "If it ain’t Boeing, it ain’t going." And Boeing’s share price is certainly going — at mid-November, when I initially recommended the stock, it was trading at US$262/share. It was the best-performing stock in the Dow Jones Industrial Average in 2017, while delivering a 2.2% dividend, and at the time of writing it had risen a staggering 21.03% in the year to date. Some may say the share price is expensive, but there is still a lot more steam in this stock’s upward trajectory. Late last year the company was awarded a $37bn aviation contract by the Chinese government, and it has also just won a $6.6bn deal with the US Missile Defense Agency for a Ground-Based Midcourse Defense system. This is an indication of the business’s diversified revenue stream over and above its core aviation business. Which talent would you most like to have? To be more musical...
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