Long Position on RELL @ $23.50 on 11/2/2022 (Momentum)

Richardson Electronics, Ltd. (RELL) engages in the power and microwave technologies, customized display solutions, and healthcare businesses in North America, the Asia Pacific, Europe, and Latin America. 

Its Power and Microwave Technologies Group segment provides engineered solutions, power grid and microwave tubes, and related consumables; technical services for microwave and industrial equipment; and power conversion and RF and microwave component for broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology applications.

Its Healthcare segment manufactures and distributes diagnostic imaging replacement parts for CT and MRI systems; replacement CT and MRI tubes; MRI coils, cold heads, and RF amplifiers; hydrogen thyratrons, klystrons, and magnetrons; flat panel detector upgrades; pre-owned CT systems; and additional replacement solutions, as well as offers CT service training.

It serves hospitals, medical centers, asset management companies, independent service organizations, and multi-vendor service providers.

The company's products are used to control, switch, or amplify electrical power signals, as well as used as display devices in alternative energy, healthcare, aviation, communications, industrial, marine, medical, military, scientific, and semiconductor markets. 

On October 5th, RELL reported 1st Quarter August 2022 earnings of $0.45 per share on revenue of $67.6 million. The consensus earnings estimate was $0.24 per share on revenue of $61.4 million. Revenue grew 25.8% on a year-over-year basis. Shares have formed a bullish "cup and handle" and higher share prices are expected.

Entry Point: $23.50

Trading Range: $10.36 to $24.60

Stop Loss: $21.75

Target Price: $25.85

Position closed on 11/26/2022 at price of $26.50 with a 12.77% gain in 24 days.

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