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Friday, July 10, 2009
Brian D. Pacampara :: Townhall.com Columnist
5-Star Stocks Poised to Pop: Dawson Geophysical
by Brian D. Pacampara
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Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oilfield services expert Dawson Geophysical (Nasdaq: DWSN) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Dawson's business and see what CAPS investors are saying about the stock right now.

Dawson facts

Headquarters (founded)

Midland, Texas (1952)

Market Cap

$194.5 million

Industry

Oil and Gas Equipment and Services

Trailing-12-Month Revenue

$313.8 million

Management

Founder/Chairman Decker Dawson

CEO Stephen Jumper

Return on Equity (average, last three years)

18.8%

Competitors

CGG Veritas (NYSE: CGV)

TGC Industries

CAPS Members Bullish on DWSN Also Bullish on:

Apple (Nasdaq: AAPL)

Johnson & Johnson (NYSE: JNJ)

Middleby (Nasdaq: MIDD)

CAPS Members Bearish on DWSN Also Bearish on:

First Solar (Nasdaq: FSLR)

Microsoft (Nasdaq: MSFT)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.

Over on CAPS, some 98% of the 2,769 members who have rated Dawson believe the stock will outperform the S&P 500 going forward. These bulls include A6EIntruder and All-Star wuff3t, who is ranked in the top 10% of our community.

In late March, A6EIntruder nicely summed up the seismic opportunity:

Provides the data that big, dinosaur oil needs ... skills and expertise are contractable (so oil giants don't have to pay to keep it all in-house). Will only get more valuable in the future as top-quality analysis and interpretation of data becomes more valued.

In a pitch from last month, wuff3t reminds Fools that's it not too late to jump in:

Found this using the CAPS screener and looking for all my favorite measurements: low P/E and P/B ratio, decent Current Ratio and EPS growth. Oh, and low debt. Well, [Dawson] scores on all counts, and beats the industry averages as well. Even after its recent run-up (more or less doubled since March) I still see this as a very undervalued company and expect it to outperform significantly once the world resumes its normal "oil-frenzy" mode.

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About The Author

Brian D. Pacampara is an investment expert and analyst for the Motley Fool.

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