Although Star Equity Holdings (STRR) might not be a famous company, it has a broad portfolio of products and services, primarily in the healthcare and construction space. But because the stock is up 29.4% over the past month, the question is can it continue rallying? Let’s discuss.With a $19.02 million market cap, Star Equity Holdings, Inc. (STRR) is a nano-cap diversified holding company that offers primarily healthcare and construction solutions in the United States and internationally. Formerly known as Digirad Corporation, the company has grown its business over the past few months, primarily relying on its KBS Builders business. STRR announced in October last year that KBS Builders had signed Phase 3 of its previously announced project with Tocci Building Corporation.
STRR paid a $0.25 dividend on its 10% Series A cumulative perpetual preferred stock on June 11, 2021. The stock’s price has surged 29.4% over the past month and 30.2% over the past three months to close yesterday’s trading session at $3.79.
However, the company proposed adopting a Rights Agreement last month, subject to stockholder approval, to preserve the value of its significant U.S. net operating loss carryforwards (NOLs) and other tax benefits. STRR also sold certain operations this year. So, with the resurgence of the COVID-19 cases, STRR’s near-term prospects seem uncertain.