Steven Reiman
Long/short equity, value, research analyst, small-cap

Dawson Geophysical: Q1 Update

I wrote a bullish article on Dawson Geophysical (NASDAQ:DWSN) (referred to as "Dawson" for the balance of this article) in late January and since then, the company is down roughly 10% after reporting less than stellar Q1 results. While it is never good to put too much emphasis on near term quarterly results, we should also not blind ourselves to them.

The main investment thesis for Dawson is that it is cash flow rich, possesses a conservative balance sheet and is in the latter stages of a major equipment overhaul. Once this equipment upgrade has been completed, shareholders should start to see more of the company's cash flow directed to them in the form of a regular...

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