DWSN - Dawson Geophysical: Cash At All-Time High But Almost No Revenue

• With oil and gas valuations recovering, it will become harder to find undervalued upstream companies.
• However, oilfield services are still lagging behind E&P because the high oil and gas prices so far haven't spurred significant increases in exploration and production.
• As a seismic data acquisition services provider who depends on new exploration activity, Dawson Geophysical will be on the very back end of the oilfield services recovery.
• Dawson Geophysical's robust cash position indeed makes it appear like a great deep value prospect; unfortunately, revenue has fallen to almost zero and there are no signs of future revenue.
• For now I will pass on the company, but I will watch for any reversal in the negative revenue trend over the next two quarters.

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