FBR Capital was quick to jump to what appears to be the defense of Weatherford International Ltd. (NYSE:WFT), maintaining their "Outperform" on the oilfield services company.
"Weatherford is under-performing its peers today by roughly 400 bps due in large part to what we believe is an over-reaction to one of the findings of BP's (NYSE:BP) Macondo blowout investigation report. BP's report concluded that the hydrocarbon influx occurred through the casing shoe track as opposed to a failure of the casing or the wellhead. This concern has prompted some investors to sell or short WFT shares assuming the company may have some liability for the blowout. We believe this concern is baseless...As such, we believe the sell-off in WFT today is not warranted by the facts presented in BP's report," said FBR Capital analyst Robert MacKenzie.
Weatherford closed Wednesday's trading session at $15.47, down $0.08, or 0.51 percent. The trading volume soared during the sell-off, rising to 27,891,983 shares, way up from the 3-month average of 12,922,000.
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BP sorted the immediate aftermath of the oil spill while those really responsible for the cause hid in a corner pretending that it was nothing to do them with.
They are still saying it was nothing to do with them despite the clear evidence and this will cost them dearly as they did little to mitigate the loss to the local community when they had a chance.
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