I’m proud to present the following interview with the founder and editor of The Greenbackd Blog. Greenbackd is dedicated to unearthing undervalued asset situations, where a catalyst exists likely to remove the discount or unlock the value. Greenbackd seeks securities trading at a substantial discount to asset value. In addition, Greenbackd is a “Gold Standard” contributor to Seeking Alpha and a GuruFocus guru.

Disclaimer: We are a bit biased; Greenbackd is our favorite investment ideas blog.

We’ve recently been using the GuruFocus Benjamin Graham Net Current Asset Value Screener (subscription required) to generate regular watchlists of net net stocks. The GuruFocus NCAV screen has some superb functionality that makes it possible to create the watchlist from the screen and then track the performance of those stocks. We created our first watchlist on July 7 of this year using the July 6 closing prices. The performance of the stocks in that first watchlist over the last quarter has been nothing short of spectacular. Here is a screen grab (with some columns removed to fit the space below):

Digirad Corporation (NASDAQ:DRAD) has filed its 10Q for the quarter ended June 30, 2009.

We started following DRAD (see our post archive here) because it was an undervalued asset play with a plan to sell assets and buy back its stock. The stock is up more than 118% since we started following it to close yesterday at $1.92, giving the company a market capitalization of $36.1M. We last estimated the liquidation value to be around $29.5M or $1.56 per share. We’ve now increased our valuation to $32.5M or $1.73 per share following a very good quarter for DRAD, in which it generated over $2.2M in cash. DRAD has also now started to buy back stock under its previously announced $2M stock repurchase plan.

Below is a list of 24 stocks that are between $1 and $5, have net positive cash on their balance sheets, have insider buying, and trade at or below 50% of book Value. This is a good starting point from which the reader can do some further work on before deciding to put on any trades on. I included EBITDA and Revenue stats as well. Please note that stocks in this price range can be very risky, so the reader should examine these names carefully before making any decisions. Yahoo Finance was used for this activity.

Digirad Corporation (DRAD) is a tiny undervalued asset play with a plan to sell assets and buy back its stock. At its $0.88 close on Friday, the company has a market capitlization of $16.7M. We estimate the liquidation value to be around 76% higher at $29.3M or $1.55 per share. The company’s net cash value is around $16M or $0.85 per share, which means the company is trading at a small premium to its net cash. DRAD plans to put the cash to good use, announcing a share buyback to repurchase $2M of its stock.

About DRAD