Richardson Electronics (RELL)

The article highlights the cyclical downturn in the semiconductor business (PMT segment) as a transitory headwind that has caused the stock to be oversold. The author sees a "V" shaped recovery in the semi-wafer customer demand in the first half of CY 2024. The Green Energy Solutions (GES) segment, particularly the EV locomotive business with Progress Rail, is identified as a significant growth driver. The turnaround of the Healthcare segment to profitability is another key catalyst. The author forecasts a conservative EPS of $0.80 for FY 2024, a significant decrease from FY 2023, but believes the long-term opportunity is attractive.