Richardson Electronics [RELL]

The thesis is driven by the fast-growing, higher-margin Green Energy Solutions (GES) segment. The company is seen as a misunderstood "demand dust" business with a venture portfolio of products. The author believes the company's operations have reached an inflection point for sustainable revenue growth and profitability. The base case suggests a fair value of $25 per share and a price target of $45 by FY27, driven by 11% revenue growth. The author acknowledges governance concerns due to the CEO's controlling stake but believes the secular trends and growing backlog offer significant upside.