Gates Capital Management Increases Exposure to Richardson Electronics, Ltd. (RELL)

Gates Capital Management, a fund managed by Jeffrey Gates, has disclosed, in a newly amended filing with the Securities and Exchange Commission, incresing its position in Richardson Electronics, Ltd. (NASDAQ:RELL). The fund currently holds around 2.7 million shares of the company, versus some 2.6 million held at the end of September, as disclosed in the latest 13F. The holding amasses 22.73% of the company’s common stock. The stake is activist by nature and has a value of over $30.2 million, at the current stock price of Richardson Electronics.

Richardson Electronics Ltd. (RELL)

Richardson Electronics, Ltd. (NASDAQ:RELL)’s stock edged up by around 1% since the beginning of the year. For the first quarter of its fiscal 2014, ended August 31, the company posted an annual 3.9% decline in net sales, which totaled $34.3 million. The gross margin remained almost flat over the year at 29.8%. The company posted a net income of $2.0 million, which represent $0.14 per share, which represents a boost from $0.6 million, or $0.04 per share in the same period of last year.

Earlier in September, Gates reported upping its position in Richardson Electronics, Ltd. (NASDAQ:RELL) to close to 2.6 million shares, from 2.5 million held earlier. At the same time, the fund changed the nature of the stake to activist. In addition to Gates, Rgm Capital, managed by Robert G. Moses disclosed holding a $13.4 million stake in the company, which amasses 1.2 million shares. Chuck Royce’s Royce & Associates also reported holding some 916,400 shares of Richardson Electronics, Ltd. (NASDAQ:RELL), worth $10.4 million.

A couple of days ago, Gates disclosed, in another filing, increasing its position in Darling International Inc. (NYSE:DAR) to 6.0 million shares, from 4.9 million. Currently the fund holds 5.1% of the company’s common stock. Earlier, Gates almost doubled its position in Headwaters Inc (NYSE:HW) to 7.37 million shares, equal to 10.1% of the company’s common stock.

Disclosure: none

Recommended Reading:

Sandell Asset Management Picks Up Its Stake in Bob Evans Farms Inc (BOBE)

Charles Davidson, Wexford Capital Keep Selling Diamondback Energy Inc (FANG) Shares

Clifton S. Robbins, Blue Harbour Group Up Their Stake in CACI International Inc (CACI)

 

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!