Boss; De Plane, De Plane
Research for Online Investors

by John Dalt

12/15/09

Monitoring the news shows today provided a little excitement as Boeing had their first test flight of the 787 Dreamliner.  Perhaps it is something in me from being a farm kid, growing up in a time when seeing a jet in the sky was an amazing site. Watching the plane take off, without any problems, set off a touch of excitement and swell of pride.

The plane was delayed over two years due to problems in design, supply, logistics, and a two-month strike.  Parts of the plane are built in Europe and Japan.  Analysts estimate that Boeing has invested over $10 billion in the development of the Dreamliner.  You can read Reuter’s story on the initial flight.

Boeing has orders for 840 Dreamliners at list prices of $150 to $205 million apiece.  The Dreamliner carries about 250 passengers on 20% less fuel than similar sized planes.

Bad news on the real estate front as there are fewer buyers for foreclosed properties, according to a recent survey by RealtyTrac and Truilia.com, a real estate search engine.  The survey was conducted in November and found 43% of Americans would consider buying a foreclosure.  This was down from 55% last May.

Trulia CEO Pete Flint said of the next year, "government interventions will start to disappear, shadow inventory will hit the market and mortgage rates will start to rise to around 6 percent from under 5 percent…We're in a false state of stability." RealtyTrac expects over 3 million properties to receive at least one foreclosure notice in 2009, up from 2.3 million in 2008, and estimates that half of those will go back to banks.  Foreclosures could increase to over 4 million in 2010

The New York Times covers the Copenhagen Climate Conference with the headline, “Delegates at Talks Scramble as Gulf on Issues Remains.”  It seems the biggest obstacle is how much aid goes to developing countries.  Does this surprise you?

Protesters added to global warming by lobbing small firebombs in anger over the lack of progress.  According to the article, “Poorer nations say they need a robust long-term financing commitment from developed nations to cope with climate changes they did not cause, like rising seas.”  Yvo De Boer, the U.N. Climate Official says, “you have small island nations who are about to disappear because of sea level rise…”   Wow, talk about drinking the …water.

One note of interest for immediate investment consideration.  Buy XOM.  Exxon Mobil shares have fallen after the announcement to buy XTO Energy.  XOM is below its 200-day average.  It has retraced 50% of the advance stockholders enjoyed since March 5  What have they done wrong?  Bought natural gas reserves, expertise in shale gas exploration, in an all stock deal, and did it all: cheap.  What is not to like about this company?  XOM closed today at $69.17  You might be able to grab it as low as $68.60, but if you wait you could also pay $75

I talked to one of my money manager friends today; he was scooping up shares for his clients as we spoke.  Remember; be greedy when others are fearful.

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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