Jim Cramer sees his head in Boeing after the stock was released on 737 Max

CNBC’s Jim Cramer recommends buying the dive into Boeing after shares traded lower for two live sessions.

“Even with a short-term turmoil, Boeing is perfectly positioned as the grand reopening,” the Mad Mad host said Monday.

Dozens of 737 Max jets, manufactured by Boeing, were temporarily grounded on Friday to address a problem with the aircraft’s electrical power system. Boeing shares have fallen 2% since the announcement and closed below $ 250 a share on Monday.

However, Cramer said the circumstances do not justify dumping the stock as Boeing is at a bending moment.

“Boeing has made too much effort to scare its shareholders by a bad headline,” he said. “I also see the decline in negative research on corporate governance today as a non-issue.”

Boeing’s 737 Max returned to service at the end of last year after it was grounded worldwide in the wake of two fatal accidents that killed hundreds of people.

The demand for air travel is increasing as consumers become less worried about contracting coronavirus. Meanwhile, airlines are ordering more aircraft that can be financed at low interest rates, Cramer said. Southwest Airlines, for example, announced last month that it would buy 100 units of the smallest Max model.

“Apart from this small problem, the 737 Max is really back. Look, it used to be Boeing’s most popular aircraft and it’s been re-approved as the airlines got ready to start placing orders again in anticipation of the big reopening,” he said.

“That’s why we own this one for the charity trust and so far we are playing thesis as expected.”

Despite selling out over the past four weeks, Boeing shares are up more than 16% this year. The stock outperforms the S&P 500, which is 10% higher so far.

Disclosure: Cramer’s charity owns shares in Boeing.

Disclaimer