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Timothy Smith

10/15/12 10:28 AM

#224 RE: ameen123 #223

Weatherford International Ltd. (WFT) has faced some challenges that appear to have kept some investors away.

However, that could be creating an opportunity to buy well below fair value and even below book value, which is around $13.05 per share.

Weatherford looks cheap because most stocks trade at a substantial premium to book value. For example, the S&P 500 Index currently trades for more than double book value.

Another factor to consider is that Weatherford trades for just about 9 times forward earnings, while the average stock in the S&P 500 Index trades for about 16 times earnings.