Monday, April 27, 2015

Seeking Alpha: Weatherford Still Pinning Its Hopes On Better Performance

Say this much for Weatherford (NYSE:WFT) - expectations had gotten tamped down enough that the stock has actually managed to outperform peers like Schlumberger (NYSE:SLB), Halliburton (NYSE:HAL), and Baker Hughes (NYSE:BHI) since my last piece. Of course, stretch that comparison out over time, and Weatherford emerges as a notable laggard. This underperformance was well-deserved, as the company consistently posted underwhelming performance from a business that was pretty much structurally incapable of doing well (by virtue of being more focused on more competitive and/or lower value-added segments).

This was supposed to be a new beginning for a leaner, better-focused Weatherford, but then the North American onshore market had its legs swept out from under it by a sudden and significant drop in oil prices. So here we are, looking at first quarter earnings, where Weatherford once again missed, and contemplating the future. I continue to believe that the company is undervalued, even if it takes until 2018 for profits to recover to last year's level, and I believe that ignores the potential upside of a business that may be more stable than believed, and better able to grow when oil prices and activity levels recover.

Continue reading here:
Weatherford Still Pinning Its Hopes On Better Performance

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