Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Weatherford International (WFT) -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (118)	12/7/2005 9:21:23 AM
From: Dennis Roth	Read Replies (1) \| Respond to of 142

Weatherford (IL/A): Reinstating IL/A rating - $42 fair value estimate - Goldman Sachs - December 07, 2005 After a period of NR, we are reinstating our view on Weatherford with an IL/A rating given the recent closing of its acquisition of certain assets from Precision Drilling. Our fair value of $42 suggests 17% upside potential, which is essentially in line with the 19% implied upside of our OSX 219 fair value. Our 2006 WFT EPS estimate of $2.03 is in line with consensus. We believe the PDS acquisition enhances WFT's long-term growth/ return potential by (1) boosting technology content, (2) opening new growth + cross-selling opportunities + (3) diluting mature US exposure (e.g. rentals). Moreover, integration appears to be proceeding well. Visibility on revenue synergies beyond our current estimates may be a catalyst to become more aggressive, with detail on 2006 capex in January potentially the next data point. Each of the analysts named below hereby certifies that, with respect to each subject company and its securities for which the analyst is responsible in this report, (1) all of the views expressed in this report accurately reflect his or her personal views about the subject companies and securities, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report: Terry Darling, Jerry Revich.