Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Patience With Weatherford Should Pay Off

Energy services company Weatherford (NYSE: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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details