3/29/2009

May be worth a closer look again

It was encouraging to see Barrons this weekend providing commentary on stocks that in the past were never allowed due to the relative small size.

Taken from Barrons in an article "Cheap? Yes; A Bargain? Probably Not"

"Bradford Evans, co-manager of Heartland Value Fund (HRTVX), cites Digirad (DRAD), which specializes in cardiovascular- and nuclear-imaging systems. It projects '09 sales of $80 million, and has $28 million in cash and equivalents and a book value of $2.47. Yet its market cap is $18 million and its shares are just 95 cents. In 2008, the stock traded down from its peak of $3.50 in early February, to a bottom of 48 cents on Dec. 4. Evans, who owns Digirad stock, believes it is poised for a turnaround this year, thanks to a strong balance sheet, good technology, significant partnerships with leading medical schools and a restructuring plan that will better manage growth while controlling costs. "

Direct officer insider March buys for DRAD

http://shadowstock.blogspot.com/2008/10/digirad-corporation-drad.html

Along with DRAD, PSTA was another stock that has been on the insider buying list recently provided.

"Monterey Gourmet Foods (PSTA) is a pasta maker whose shares he has held since 2001, buying them at an average five bucks each. Although the stock is trading at 1.01, Athey isn't panicked: "The company has the lead position at large retailers including Costco and Sam's Club." He notes that Monterey also has a book value of $1.71 a share, 12 cents of cash per share, positive operating earnings and net cash flow, and no debt. "

Direct officer insider March buys for PSTA

In my opinion both of these stocks are worth closer look.

I own shares in DRAD and PSTA

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