Looking at the SLB results / problems on cash flow and general performance trending downwards in Q1 - makes you wonder what’s in store for us? Will they you even make the interest payment? Add in the 2020 senior notes exposure then things are only going to get worse as we enter bankruptcy.
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Anyone notice that they cancelled the earnings call for tomorrow and postponed the release until Friday?????
They believe that staying on the NSE means that WFT remains relevant. Long term it makes no difference. It’s really just life support. Staying on NSE means that the stocks will remain in some investment portfolios. Getting delisted and going to another exchange changes the clientele buying the stock. It would also be a lot harder to even get back on the NSE if things were to turn around. The reality is that the stock price will continue to be ground down by the fund managers just as WFT has done to their vendors until there is nothing left. Eventually every POS house gets purchased, there is a shell that is finally worth something or the real estate has some value.
Woohoo ! Looking forward to that Q1 meeting tomorrow at WHR. Y'all don't be late.
For those fans of McCollom, I agree that he walked into a mess - however stop defending him. He's a big boy and could have worked to clean house sooner and make some real sweeping changes but he did not. The vast majority of managers are still there that aided in getting this company to the state its in.
A word on many of the managers, a lot of fundamental issues with them - either they lack the people skills to run an organization, have no concept of how to run a P&L (no one has invested the time to teach them, WFT only showed them how to hide errors in inventory and such, or have by and large gotten their position because they knew someone.
Back to MM, I would have had some respect for the guy if he had gone after the board as they allowed much of the poor decisions of BDD to sale through -- and many are still there to this day. WTF.
I guess the ultimate job in the oil patch is getting on the WFT board. You can do nothing, say nothing, may know something but don't show it and get paid a retainer and flown in to go to board meetings as you watch a once promising company go down the tubs.
The reverse stock split is to avoid getting delisted because if they get delisted they must immediately repay the $1B convertible bond. They clearly don’t have the cash, and they can’t issue enough debt to do so which would spell the end. No choice.
McCollom inherited a house riddled with dry rot and changing a few tiles and laying a new lawn ain’t gonna solve the problem. You gotta get right into the structure to k--l off them parasites eating away at the foundations and be prepared to throw away half the house while you do it. That’s the only way you’re gonna save Weatherford.
A reverse stock split won’t change anything in the long term even if it does take place. I know that this is stating the obvious but it’s not some magic formula that will cure all or most of Weatherford’s ills. The value of the company will stay the same, the same incompetent management and sales team will remain the same and the only benefit of a RSS will be to prolong the lives of the very people who should have been shown the door a long time ago. I suppose that’s why it’s being touted by upper management as a viable solution as they know full well that this breath of oxygen will keep them afloat on their exaggerated salaries for a few more months until the eventual bankruptcy kicks in. None of the fundamental problems that are facing Weatherford are being addressed in the meantime, and the long term solutions needed are being ignored and avoided. Maybe there is no real will to do it anymore anyway and it’s probably a hard fact that Weatherford has just run its course and has come to the end of it’s shelf life.
Unfortunately for Mark, he stood no chance of fixing WFT by the time he came in. Too much damage had been done, with not enough resources (cash, people, reputation, credit, TIME) to turn it around. There was no way he knew the extent of the mess until he sat in the chair, as reading some financial statements and talking to directors is far from the reality of the dirty truth.
Bottom line....when you don’t care about actually making money (real cash flow) for 20yrs, and then cash flow seems to become the focus overnight after you realize you’ve burned through another $1B of borrowed cash.....you’re screwed. And oil going to $25 didn’t help along the way. Sorry bud, but at least he paid himself well for trying
Agree with BDD comment. He ruined the company. The new guy hasn’t done much to fix it. Lots of BDD leftovers in upper management are still there that should have been let go long ago. (Meet the new boss, same as the old boss). Reverse stock split.....then BK not too far down the road
More than likely more bonuses and commissions for management and sales. They keep taking and the workers keep giving. I can't believe people put up with the sh*t of this company. And in the end they'll screw you over when your kicked out the door.
I left four years ago and knew that it was only a matter of time before WFT debt would catch up to them. Blame existing management as much as you want, but this all started and ended with Bernie.
it’s bad. They thought they Q1 results were gonna be bad but they are worse than what they imagined.