Weatherford International is a manufacturer and supplier of oilfield equipment & contract drilling services.For the FY ended 12/31/00, revenues increased 46% to $1.81B. Net loss from continuing operations totalled $44.8M vs. an income of $16.2M. Revenues reflect improved rig count and impact of the late 1999 acquisition. Net lossreflects charges related to the disposal of compression operations.

March 6, 2001

Weatherford International. is a leading provider of oil and natural gas drilling and production equipment and related services. WFT has gained over 78% after hitting a relative low of $31.75 on November 30th. The stock hit its all-time high on Tuesday, and we believe that it could be ready to move even higher. The oil drilling equipment sector currently has strong momentum and WFT should continue to move with the rest of the group. We are also looking for a split announcement with the April earnings release or out of its next BoD meeting. The company has enough shares for a split, with 250 million shares authorized and 110 million shares outstanding, and the stock is currently trading at historic split levels. The company's last split was a 3:2 when the stock was trading in the $45-$50 range. Going forward, WFT has support at Tuesday’s intra-day low of $55.50 with stronger support at $54.15, the 5-dma. There is light resistance at Tuesday’s intra-day high of $57.20. A move above $57.20 could send the stock up to $58 or $60. Traders should be looking for a bounce off of $55.50 or a breakout above $57.20 on midday volume of at least 750,000 shares before opening new positions. We plan to place stops at $52 to limit potential losses.

Picked on March 6th @ $56.80
Change since picked +0.00
Stop Loss @ $52.00

March 8, 2001

Oil and natural gas drilling equipment manufacturer Weatherford International, Inc. hit an all-time high on Thursday. Shares of WFT traded as high as $58.82 before pulling back to a close of $58.33 on volume of 1.4 million shares. The stock, as well as the majority of the oil drilling sector, has strong momentum so WFT could continue to hit new highs. However, Thursday’s pullback shows that WFT may see a round of profit taking in the near future. From a technical standpoint, WFT has light support at Thursday’s intra-day low of $57.75 with additional support at the 5-dma, now up to $56.59. Resistance is Thursday’s intra-day high of $58.82 and then possibly the $60 mark. Consider entry points on a bounce off of $57.75 or a breakout above $58.82 on volume of at least 750,000 shares by midday. We have moved our stops up to $55 to protect additional capital.

Picked on March 6th @ $56.80
Change since picked +1.53
Stop Loss @ $55.00