Just wondering if WFT is heading into bankruptcy. lost 80% already and wanted to get out before it goes to 0. Anyone believing in a turning or not seeing BK looming? Why is the stock this low, close to 0?
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Well, there's always a chance Iran and Saudi Arabia could start firing missiles at each other and the price of oil skyrockets. You never know in these things. High risk high reward when it comes to oil downturns. They can last 3 months or 3 years.
don’t believe anyone saying that is turning around..... it’s been mis managed for many many years and this is the out come..... looking from out side just do your math and you will get your answers.
https://www.gurufocus.com/term/zscore/WFT/Altman+Z-Score/Weatherford+International+PLC
The study of bankruptcy odds is a whole subfield in Finance. Professor Altman is its spirtual forefather, and he came up with an early methodology called Z scores that based on a heap of financial ratios and things like market cap, assets, income, liabilities, working capital, and earnings combined with regression analysis against publicly traded stocks, allowed him to estimate the odds a company would go bankrupt in various timeframes. Here's the current odds for Weatherford.
Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones
Study by Altman found that companies that are in Distress Zone have more than 80% chance of bankruptcy in two years.
Weatherford International PLC has a Z-score of -0.86 indicating it is in the Distress Zone.
There you have it.
There are more advanced models out there that allow you to estimate things to the month, but Altman Z-scores give you the basic gist of things.
My 2 cents....
Stick with it. It's mostly the large banks and hedge funds pulling out because they're psychopathic and impatient and entitled. What's left will be the individual investors. Weatherford has a lot of debt still to pay (of course), but they're making ground. They also have enough assets in their inventory to cover the debt currently owed. Worst-case scenario is they have to sell off a larger chunk of the business to run leaner. Stock will likely split 1:10 or 1:15 or even 1:20 in the next few weeks. Hang in there.....the reward outweighs the risk. They'll be fine by 2020. Don't think they'll let this ship sink because it's a legacy company with no bankruptcy history...it would tarnish them if they did. Actually, I'd double-down and buy more.