Saturday, December 20, 2014

Richardson Electronics: Dividend Paying Net-Net

Richardson Electronics trades for less than its conservatively calculated liquidation value. Richardson Electronics is cash flow positive for the trailing 12 months. Catalysts include: A microwave deal with the Chinese government potentially worth $100 million in sales (FY 14 sales were 138 million) over four years. Management's interests are aligned as they have a substantial equity position in the company, they have shown this by opportunistically repurchasing shares. Investors are paid to wait as the company pays a reasonable dividend. [More on seeking alpha...]

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