Sujan Lahiri

Forgotten Small Cap Digirad Corporation: Endless Stream Of Insider Buying And A Key Trial Win Indicate Deep Undervaluation

The business of healthcare imaging servicing is an interesting niche part in the health care market as a whole. Most investors can tell two main players; Alliance Healthcare services (NYSE:AIQ) and Radnet (NASDAQ:RDNT). But there is an interesting third player out there that investors seem to have overlooked, Digirad Corporation (NASDAQ:DRAD). We found out that its insiders are buying intensively for months now, and that the company recently won an important trial. We think this turnaround play is grossly undervalued, offering serious upside potential, while its debt-free and cash-rich balance sheet keeps the downside risk limited.


Digirad provides diagnostic solutions in the science of imaging primarily in the United States. The company operates...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details