If SPR does not build fuselage systems for Boeing (737, 777, 787) who will? If SPR shuts down, how can Boeing meet its new production targets? Can Boeing afford to let this compay go bankrupt? No matter how badly they missed, this sell-off seems overdone. Maybe I'll eat my words but this deserves a nibble.
SPR is not the only supplier with the capability to build product. Boeing builds soome of the parts now. That is why you see the Dreamlifter on flights to South Carolina to get parts from SC.
But I dont believe Boeing will take much more risk in this area without taking action.
The company was fortunate to get the covenant debt waivers thru early 2013, Otherwise, default and BK. That's the big reason for fear today since a company that was viewed as somewhat safe could now be on the road to BK. Onex left them with too much debt and poor management. It's amazing that Turner has held on so long considering quarter after quarter of earnings misses and disappointments. It may be too late unless managment is removed ASAP.
This is what capitulation looks like with stock losing 1/3 of company value in a single day.
Being punished for both poor execution and amature communication to street/shareholders.
Very likely - massive company shakeup in management. No excuses for this mismanagement. Board must now consider company is priced for takeover.