Richardson Electronics: Limited Downside Risk With 2 Potential Catalysts
- Operating margins are depressed because the company is maintaining an outsized global infrastructure for strategic reasons.
- There is a possibility of a $100 million order coming through at 30% gross profit margin.
- The company is lead by an owner/operator who has his interests aligned with minority shareholders.
- An event driven value-oriented hedge fund bought up $30 million worth of stock.
- An acquisition could unlock the value in the global infrastructure network.