Austin Guy
Value, contrarian, newsletter provider, long-term horizon

Turnaround Play: Weatherford International

Opportunity Overview

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...

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