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Weatherford International Ltd.

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Weatherford enjoys a leading position in the global oilfield services market. Its broad and technologically complex product/service offerings and growing presence in the Eastern Hemisphere are also encouraging. We appreciate the company’s cost-cutting initiatives, such as reduced headcount, consolidating facilities, to counter the prolonged oil price weakness. Despite these efforts, the company’s price chart also underperformed the broader market indices over the past year. Volatile gas prices also remain a drag. Given these headwinds, we expect shares of Weatherford to be under pressure in the near future. Moreover, Weatherford’s debt-heavy balance sheet and weakness in generating free cash are other concerns.

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