Weatherford... Destroyed Down -13.66%

Today was very unexpected.  What I can say from this disastrous day is diversification is your friend.   Weatherford International (WFT) dropped the bomb today telling the whole world that they have had issues calculating their true tax rate.  This will play a role in past financial statements from 2010 and prior.  That being said the stock was destroyed!!! 

Normally I would advise everyone to sell this stock, but I believe WFT is still a viable investment.  A great opportunity to buy this company much lower.  Now I'm not saying the stock will go up from here.  Actually I think the opposite in the near future.  It may waiver in the short term, but it will be much higher by the end of the year.  The fact is business is booming for Weatherford and the tax issue occurred in the past and played no part on the actual growth of the company.  From reading the earnings transcript business continues to strengthen for WFT and will continue into 2012.  The key to the success of WFT is the continued improvements in the international business. 

On a positive note WFT has admitted they had issues with calculating the effective tax rate, but has reassured investors that the tax rate will be under control in future earnings as management has had time to fully understand the tax structure of their business.  I have weighed the positives vs. the negatives and I can assure you this stock will have a short term rocky road.  What truly matters is the improvement in earnings through 2012 and in turn higher stock prices.

WFT is on my radar.  I currently have a small position and plan on buying more in the near future.  Weatherford may drop to 13 a share. Or it may not.  I will buying more before this happens.  I have confidence and so should you!  Remember to never buy all at once.  That way you will get the best price possible.

Have a great night! 

Clay-

Full Disclosure

Current Holdings:
Cosi Inc. (COSI)
Caterpillar (CAT)
Procter & Gamble (PG)
Weatherford International (WFT)
Kinder Morgan Energy Partners (KMP)