Energy services company Weatherford (WFT)
has shown it has ample capabilities in digging deep holes - both for
its oil and gas clients and for investors. Years of "growth at any cost"
spending, lax (if not wholly inadequate) accounting, and various other
accounting misdeeds created some large problems that have been coming
home to roost more recently.
There looks to be a light at the end
of the tunnel, though, and I don't believe it's an oncoming train.
Weatherford has largely cleaned up its tax issues, appears close to
resolving its internal accounting control problems, and should soon have
closure on matters related to illegal transactions with sanctioned
countries. More significantly, management has smartened up about capital
allocation and profitable growth, and divestitures should lead to a
more focused, more profitable, and less debt-ridden firm.
Click the link to continue:
Patience With Weatherford Should Pay Off
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