Privet Fund LP, an Atlanta based hedge fund,  issued a filing today stating that it has acquired 855,779 shares (6.3% of the shares outstanding) of Relm Wireless Corp (RWC) at an average price of $2.25.  RWC’s trading volume totaled 1,986,500 shares during the time the firm disclosed it was buying shares (3/11/13 – 5/7/2013), so Privet accounted for over 43% of the shares traded during the time period.  Not surprisingly, Privet’s first purchase on 3/11/2013 was at an average price of $2.04, while their purchases this week were closer to $2.70.  RWC has been the biggest contributor of gains to my portfolio this year (by a factor of 3x), and now I realize that I owe the fine folks in Atlanta a big thank you!

Separately, RWC released its first quarter results tonight after the close, ahead of an unrevised sell side consensus, and exactly in line (credit given to a sharp pencil) with my previously published preview on this blog.  It doesn’t appear that the company repurchased any material amount of stock following its March 8, 2013 announcement authorizing the repurchase of up $2.5 million in stock by the end of this year.  The investment case remains intact RWC: A Top Pick for 2013 ,but the company will need to deliver additional contract wins for my $7 price target to be realized.

Finally, I performed an analysis of my own trading in RWC during the same 41 days Privet has been involved.  Largely as a testament to the great predictive ability of The PPT‘s Hybrid Scores, I was able to execute several trades around my core position, selling shares at an average price of $2.27 (with an average Hybrid Score of 3.89), and repurchasing shares at an average price of $2.12 (with an average Hybrid Score of 3.39).  In hindsight, how great is it that The PPT helped me to buy low and sell high, at a time when some guy in Atlanta had his finger stuck on the buy button!  I’m a fundamental analyst at heart, but The PPT is a great tool to help you manage positions in a portfolio, and look for new ideas!

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