Dawson Geophysical Company (NASDAQ:DWSN)

CAPS Rating: 4 out of 5

The Company acquires and processes 2-D, 3-D seismic and multi-component seismic data for its clients, ranging from major oil and gas companies to independent oil and gas operations as well as providers of multi-client data libraries.

Recs

1
Player Avatar TheGarcipian (32.94) Submitted: 10/18/2007 5:31:47 PM : Outperform Start Price: $83.44 DWSN Score: -45.75

For the reasons mentioned in my pitch on CGV, I'm choosing Dawson Geophysical. It should actually outperform CGV, which looked good to me too. For DWSN, the important numbers for me are: ZERO debt(!); PEG=0.89 (very good); Profit & Operating margins of 10% & 16.20%; RoA=15.3%; RoE=18.4%; Revenue = one-third their Market Cap (very nice!); Book Value = 21% of their stock price; 15% inside ownership; zero debt; a nice Assets/Liabilities ratio of 1.866; and, oh, did I mention ZERO debt? :-)
I should have bought into this company when Bill Mann suggested it eons ago in Hidden Gems, but hopefully I'm not too late to this party. It appears from the charts and the numbers that DWSN continues to fire on all seismic signals.

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Member Avatar TheGarcipian (32.94) Submitted: 5/19/2008 8:29:52 PM
Recs: 1

Curses! I was 5-7 months early on this one; so what else is new?... Looks like the rest of the market has finally seen what the Hidden Gems subscribers have known for some time. DWSN has posted a 48% gain since its low point in early Feb 2008, and while its PEG ratio has grown to a plumper 1.42, all the other numbers have grown very nicely right alongside that PEG. For instance, the Profit & Operating Margins have grown to 10.8% and 17.2%, respectively. The Return on Assets is now 16.63%, while the Return on Equity has grown to 21.8% (from 18.4% in my initial report). Revenue has ballooned to a very healthy $300M, a solid 50+% of the Market Cap for this stock ($584.4M). Very nice. Book value has grown to 28.3% of their stock price (up from 21%). Besides the PEG being 1.42, the only other mildly negative thing here is that some insiders must have sold some shares as the percentage of insiders holding shares has fallen from 15% to under 3%. Still, DWSN should continue to perform well over the next year, especially when you take into consideration that oil-and-gas production drivers will demand more services like that which Dawson provides, to reap bigger returns on invested capital. I'm re-upping my Time Frame for this pick.

Member Avatar TheGarcipian (32.94) Submitted: 7/1/2008 3:10:05 PM
Recs: 1

You know, every time I write "hope I'm not too late to this party", I am. What amazing timing I have. It makes me laugh out loud, seriously. In reviewing this post/pitch, I see I'd originally recommended this stock on October 19, 2007 at $83.44/share. That's pretty darned close to its yearly high, back some 8 months and 30% ago. Geez. Maybe I should start my own UltraShort fund (a counter/alter ego of sorts), picking the exact opposite of my regular picks... anyway, just grousing. Fortunately, I don't own any of DWSN in real life, but I still think it holds good promise over the long haul. (Of course, you know that means you should SELL it immediately now!).

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