Global Geophysical Services: Good Vibrations for Investors?

In a relatively short period of time, Global has become a major player in the seismic data solutions industry, with roughly 10% of the market. The company uses high-end technologies -- even 4D modeling -- to allow for high resolution images of the earth's subsurface, which reveals complex structural and stratigraphic details.

Global's solutions help companies reduce risks with exploration as well as successfully engage in complicated endeavors, such as horizontal drilling. As validation, the company has a top-notch customer base that includes biggies like Pemex, BP (BP), ConocoPhillips (COP) and Exxon Mobil (XOM).

While Global has been a growth company, the tough market last year did take a toll as revenues fell from $376.2 million to $312.7 million. Yet, the company was still able to maintain a 32% EBITDA margin. And 2010 should improve as the oil industry gets traction action.

More importantly, the long-term looks attractive. After all, the easy sources of energy are gone and this means that there will be a need for sophisticated seismic technologies.

But of course, IPO investors are not really focused on this, as Global's stock price is unchanged so far in today's trading. But keep in mind the market has been tough for most other offerings today. So, for those looking for a play that has long-term potential, Global is something to consider.

Tom Taulli advises on business tax preparation and is also the author of a variety of books, including The Complete M&A Handbook. His website is at Taulli.com.