valuation, page-4

Redlight, I really appreciate your insight into the way things actually happen in the US. Most people here have little exposure to the intricacies of state politics, often assuming that, because a measure is carried in the state lowser house, it will automatically become law (since that is usually the way it works here). The power of the various committees, the independence of most state upper houses, and the strength of state governors, is a different world, and too few Australians take the time and trouble to become familiar with the process.

Your point on valuation is well made. Nestor have shown a record of increasing losses and decreasing Gross Margins for the last eight quarters, and show no clear signs of reversing the trends. Yet, with about one-quarter the number of approaches of Redflex, NEST still commands a market cap about half that of RDF. They can't both be right!

I'm sure the RDF ADRs have not (yet, at least) been the success that some people, including me, expected (hoped?). The next three months, with so many cities, including some very large ones, in the process of making decisions, might focus more attention on the successful bidders. The business is likely to help RDF, and the publicity could help move the share price.

Good luck!