Carson Block's firm believes that recent Boeing crashes show that the company is more concerned with short-term profit than anything else.
Short seller Carson Block believes recent Boeing crashes of its 737 MAX planes show that the company is more concerned with short-term profit than anything else.
"But let's be clear: But for MCAS malfunction, plane would have landed," Muddy Waters added."That malfunction is almost certainly the result of putting SHORT-TERM profits above all else."A spokesman for Muddy Waters confirmed to CNBC that the research firm does not have a short position in Boeing, but wanted to weigh in on recent developments. Aerospace manufacturer Boeing did not immediately respond to CNBC's request for comment.
Muddy Waters' comments come a week after Ethiopian investigators released a 33-page preliminary accident report, which some industry officials and air-safety experts say raise questions about the Boeing 727 Max's Maneuvering Characteristics Augmentation System , designed to prevent stalls. But between the March 10 Ethiopian crash and October's fatal nose-dive of a Boeing 737 MAX aircraft in Indonesia, investors and regulators alike have also scrutinized pilot and crew response for any abnormal crew actions.
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