Earlier this week Weatherford International (NYSE:WFT) completed a capital raise of 100 million shares at about $5.65 per share. The $565 million capital injection could help alleviate liquidity strain or make its $350 million principal payment that was due last month. Nonetheless, the company's debt/EBITDA would still be over 7x, leaving it vulnerable to another debt downgrade.

Weatherford to stay afloat it must renew its revolving credit agreement. I believe a new deal could be costly for shareholders due to the rout in oil prices and free fall in cash flow. Given Weatherford's dire straits the best valuation methodology may be its liquidation value. Using that standard Weatherford's equity is worthless.

http://seekingalpha.com/article/3956152-based-liquidation-value-weatherford-worthless

Weatherford is one of those companies that takes in $1.00 Billion with 10,000 employees, buys another company taking in $200 Million with 2,000 employees, and ends up with a company that takes in $1.05 Billion with 10,500 employees.

Then they give their management a bonus for "growing the company" by $50 million and 500 employees.

It's a shame they're not the only one...