Seeking Alpha: Parker Drilling Starting Slow, But On A Better Path

I liked Parker Drilling (PKD) and its turnaround/self-improvement story about six months ago, and while the idea worked pretty well for a short time (the stock rose about 30% in the first month after that article), performance has trailed off noticeably since March as the company warned that 2014 would be off to a slower start. With that, the shares have been left behind by other small-cap energy service providers and contract drillers.

The sluggish start to 2014 is disappointing, but the Parker Drilling story is still worth a closer look. The company is the leading player in domestic drilling barges, earning a dayrate premium for the quality and capabilities of its rigs. The company's international land rig business is seeing better utilization, and there is a significant opportunity in the tool rental business from expanding operations in the Gulf of Mexico (or GOM) and improved margins in the international business (or ITS). A fair value of around $8 may not scream "must own" today, but it is worth a look as a relative laggard in the space.

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Parker Drilling Starting Slow, But On A Better Path

The Motley Fool: Stormy Weatherford International Ltd Moving in the Right Direction

If you own shares of Weatherford (NYSE: WFT  ) , there have likely been many occasions that left you scratching your head and wondering, "what possessed me to do that?" To management's credit, though, it is no longer pursuing a strategy of bigger-must-be-better and is instead examining where the company's core competencies and profit opportunities really lie.

The second half of 2013 was volatile and largely disappointing as the company missed margin and cash flow generation guidance. This next year is likely to be challenging as well, as the company looks to enact a large headcount reduction as well as the sale/spinoff of multiple non-core businesses. Weatherford's many self-inflicted wounds have obscured that it does in fact do many things well, and investors looking to play a still-undervalued turnaround story in oil services may want to check this one out.

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Stormy Weatherford International Ltd Moving in the Right Direction