10/24/12: Sell Weatherford International

Weatherford International (NYSE: WFT) has been one of the poorer performers among the oilfield services companies, in part due to the global economic slowdown of recent years and in part because investor confidence was shaken when the company announced that they would need to restate their financial statements for several prior years. Weatherford is a solid company with an admirable diversified portfolio, and it will likely bounce back in the coming years. But after closely examining the company’s financials, we believe better opportunities lie elsewhere at present. Sell Weatherford International.

Stock Talk

Guest One

Charles Holewinski

Hi Elliott,

Please provide us subscribers with some timely information on reasons for selloff of the oil and natural gas trusts such as CHKR, SDR, PER, etc.

Specifically what is the cause of this selloff, where do you see it bottoming, is this a buying opportunity, are the dividends safe, plus any other info you thing is important.

All the Best,
Charlie Holewinski

Guest One

McGowin Patrick

I have the same questions as Cahrlie regarding the oil trusts

Guest One


Hi Robert – it is getting pretty disappointing when one tries to get some info either by reading the questions posed by others and then reading your responses, OR, by submitting questions of my own via your “Contact Us” interface. Unfortunately, like the questions above posed by Charles – there is NO ANSWER! I sent in a ques about CCJ some time ago with my email in case you wanted to respond to me directly and I have not received any response nor can I find any info on the site regarding CCJ. Not sure if I will remain a subscriber with this poor response history. What is the purpose of having us ask if you are not going to respond?

Robert Rapier

Robert Rapier

Hi Tom,

Once more, I apologize about the tardy reply. I think we have that situation resolved. My analyst Igor Greenwald took a good look at CCJ over the weekend. I can tell you that in my introductory post when I first came here, I indicated that I am not very bullish on nuclear power in the short term, but think in the longer term it is inevitable. Countries like China and India will conclude that this is the best path forward for them.

Here were Igor’s comments:

“While the price of uranium has rebounded somewhat in recent weeks, it remains down more than a third from the peak hit in 2011 before the Japan tsunami wrecked Fukushima. Cameco shares have also rallied in recent weeks, reclaiming their 200-day moving average, thanks in part to the new Japanese government’s plans to restart the country’s idled nuclear reactors. But the logistics of the pending restart are not certain, while uranium supply remains plentiful while European giants France and Germany continue to review their long-term nuclear plans. In the U.S., cheap natural gas and the relatively low capital costs of gas-fired power plants relative to nuclear reactors are likely to limit new nuclear capacity. Cameco’s 2% yield is a point in its favor, and further gains could be in store if uranium prices continue to rise. But we’d recommend waiting for a pullback below $20 a share before dipping a toe in the water.”

Hope that answers your query.

Thanks, Robert

Guest One

Ron Fisher

I’ve read that there is a developing supply issue for uranium as Russia winds down as an important source. Does this concern have merit?

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