I would like to know serious thoughts on what will happen to the company in the next couple months. Surely we cannot survive at stock under $3 a share. Will they go bankrupt? Are the rumors true about the sell offs? Will they do more layoffs, consolidations? They don’t communicate and we are left wondering.
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They will continue to sell off the Family Jewels. Those are the parts that actually make money. The remaining Regions and Product Lines will suffer under the increasing overhead from the Supply Chain and Upper Management that is not being reduced. The Software recurring lease payments (Oracle, Peoplesoft, Hyperion, etc., etc., etc..) will increase the cash burn.
Weatherford is in the slow death sprial. Stair stepping stock price down week after week. This only ends one way. Bankruptcy. But because so many of the Board of Directors have their hands in the cookie jar, they will fight it every step down. Until their hands are forced by the banks to recover their debt. The banks have to lose confidence. I suspect the final nail in the coffin will come this summer when oil prices go back to $35/barrel. Due to the ever increasing USA Oil Supplies.
When a company is so far in the pockets of bank, the bank will not call in the debt. It will send its own share prices into freefall.
Your forgetting that money borrowed is only digits on a computer screen. With all debt in world do really think there is enougth money printed to support it? "no"
If the bank or WFT could sell of WFT assets it would not clear its debts or intrest due. The solution at momment is to keep pumping in cash. While this trend continues for now, the banks are making some serious coin out WFT.
Stock price is really not a big deal.
Bankruptcy does not always mean going out of business. Hopefully, the company will restructure, ditch some debt and save the jobs of many hardworking men and women. Obviously, there are some lazy employees, but that doesn't mean that everyone is lazy. Most are decent and just want to work.
By the way, the company still needs restructuring
This account management type will not work. Wft tried all restructuring models and nothing is working and nothing will work.
I had the chance to join WFT from BHI and those who came from another service provider knows the difference between WFT and others. System here is laid back, uncompetent employees.
I know for sure that some employees come to work on time just because the manager comes on time. They will come late if the country manager comes late. The company is dying and I will not stay long. The industry is unstable and I wouldn’t expect WFT will do better anytime soon. We have only one life. Run away guys and all the best
Check out this article from the Motley Fool. Posted yesterday.
https://finance.yahoo.com/m/4b08967d-e89d-39c6-95a5-324241c18be0/ss_robust-growth-for-oilfield.html
This totally echos my posts from the past weeks. Seems like he read my posts to write the article. e.g. Constant management changes, bad earnings with upbeat commentary, asset write downs, even the bit about the Intangible Assets being too big on the balance sheet. And most importantly, the Liabilities of WFT are greater than the Assets. Hence, this company has no tangible value. i.e. stock = zero. Good riddance to Weatherford!
It's going down sooner than later
This mess is going under get out now and look for a better job.
Im not a financial analyst but I know 7b in debt doesn't go away quickly. It's a tall order to get out of this rut. Just a month ago I was very optimistic we had turned the perverbial corner and 2018 was going to be the year we finally got going again.
In terms of bankruptcy, layoffs, reorganization etc. we (smerfs) won't know until times up. Let's hope the stock ticks back up real soon.
They have no choice but to sell and layoff, the ceo has come into a basket case and is trying to save the mess that has been made. Can he do it, not sure. He needs to hire just about every VP but knows that is not viable.