With the equity markets reaching new all-time highs repeatedly throughout 2014, finding undervalued companies has become increasingly difficult. In my opinion, what's been left behind has been for significant reasons, ironically making those companies that seem cheap potentially rather risky. This in turn presents a unique opportunity for value-oriented investors: turn-around companies.
Weatherford International Ltd. (NYSE:WFT) is one such opportunity. Following years of excellent growth, the company over-expanded its capabilities and over-leveraged its balance sheet that resulted in a difficult start to the second decade of the 21st century.
(click to enlarge)
source: Weatherford investor presentation
2014 is the year of the turnaround according to the most recent annual report. The company is focusing on divesting...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|