Finance


Has Williams Lost its Spark?

SADIF Analytics Assigns Negative Long-Term Outlook Rating to Williams Companies
www.sadifanalytics.com

06.10.2008 18:09:21 SADIF-Investment Analytics SA has applied its StockMarks™ stock-rating system to Williams Companies Inc. and produced a research report, rating the company's attractiveness to long-term investors.

(live-PR.com) - Mira, Portugal – October 6th, 2008 – SADIF Investment Analytics SA, today announced the release of a new equity research report covering Williams Companies (NYSE:WMB). The report utilizes SADIF's powerful StockMarks™ stock rating system and is required reading for any current or potential Williams Companies investor.

Report Summary: Shares of US energy company Williams have fallen sharply over the past three
months due to declining natural gas prices and the general weakening of the US market. In the second quarter of 2008, Williams announced that net income increased by less than a single percentage point over the same period a year earlier due to lower income from discontinued operations. In contrast, the average price of natural gas for the quarter rose 49% from the 2007 period. Williams's natural gas production also increased during the quarter. Higher depreciation, depletion and amortization, higher operating taxes and higher lease operating expenses partially offset the gains from the quarter's high natural gas prices. With the significant drop in natural gas prices since July, the market is clearly starting to question Williams's prospects given its rising expenses. Nevertheless, the company reported first-half net income of USD 937M, a 65% increase over the first half of 2007. Given the volatility in the company's results over the past years, it is important to take a long-term view of the company's financials to determine whether Williams shares represent a good investment. We can assess Williams's long-term outlook through the use of the StockMarks framework. Williams currently has an overall long-term outlook rating (Total StockMark or SMT) of 23, rating the company well below the US market average and placing it tied for last place when compared to ten of its closest peers, selected on the basis of similarity of business and market positioning.

The complete report breaks down the Total StockMark into its three components – Business, Management and Price, performing a thorough analysis of Williams Companies for long-term investors.

A summary of the StockMarks™ ratings for Williams Companies is available here:
sadifanalytics.com/stockmarks/company.php?ticker ..

The report has been distributed to Reuters, and forwarded to Yahoo Finance and FT.com. It is available under 'Analyst Reports' from these websites or directly from SADIF-Investment Analytics SA at sadifanalytics.com/stockmarks/article/hist_artic ..


About SADIF-Investment Analytics SA
SADIF-Investment Analytics SA is an independent investment research company covering sixteen different markets and over 12,000 companies. Our StockMarks™ system is based on proven investment principles and is designed to drive long-term shareholder returns.


Author:
Andrew Kerr
e-mail
Web: http://sadifanalytics.com
Phone: (+351) 231 489 038


 

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