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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