Richardson Electronics, Ltd. – “Finding Gold in Green (Energy)”

Investment Thesis

Richardson Electronics, Ltd. (“RELL” or the “Company”) has long been considered a sleepy small cap company. RELL operates in the no-frills electrical components market, with an emphasis on manufacturing tubes and related components. Over a nearly 40-year history of being publicly traded, RELL has experienced limited profits and revenues peaked at $600 million back in 2007. However, the Company embodies a “never say never” attitude rarely seen in corporations today, custom designing components to solve customers’ issues, even when it is not profitable to do so. Together, these factors make it easy for investors to overlook or misunderstand RELL. Our view is that RELL is much more than a sleepy small cap electrical component manufacturer. RELL is a true customer solutions provider, and their relentless niche focus on creating specialized components has led them to an attractive growing market with tailwinds which may result in explosive growth.