From an analytical perspective, there are some issues that should be included in any consideration of the attractiveness of
Weatherford's shares:
The company continues to negotiate with the U.S. government regarding its ultimate Foreign Corrupt Practices Act penalties stemming from previous oil-for-food matters in Iraq. A $153 million accrual was recorded in the June quarter, following a $100 million accrual last year.
Weatherford appears to be on the verge of emerging from tax allocation issues that have played the company for some time and required significant restatements. Despite the light that appears to be visible at the end of the tax issue tunnel, the length of time that's been required for the matter to be cleared up is disconcerting.
As I wrote in another recent piece, there continues to be considerable scuttlebutt regarding the possibility of the company being acquired. General Electric (NYSE: GE) is the name mentioned most frequently as a potential purchaser. And while Weatherford may remain independent indefinitely, the possibility of the company being acquired should at least be considered.