Even at these weaker levels we still consider tobacco company paper unacceptably risky.
This does not have the earmarks of a long-planned management transition.
Boeing can easily afford this purchase, with nearly $10 billion in cash and marketable securities on hand at the end of the first quarter, and bountiful free cash flow even after substantial pension fund contributions.
Market nervousness can lead to counterparty nervousness, which can lead to rating agency nervousness and banker nervousness, and the company's financial flexibility could become impaired.
A stock buyback is a risk-free way of ensuring earnings accretions. As long as borrowed funds remain cheap, as they have for some time, it's also an inexpensive way to boost one's earnings per share.
Getting into a bidding war with J&J is bad enough. But getting into a cash-throwing contest with J&J is even scarier.
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