valuation, page-9

re: valuation---for redlight27 Serpent on the Rock----if you don't mind a second hand copy there are a number for sale now through the Amazon site, they start about $2. It's the tale of Pru Bache securities with George Ball at the helm when Pru Bache blew up in spectacular fashion in the late 80's.I think the present MD of Nestor was then also involved in the story.

I saw that Minneapolis article but am pretty sure they're red light cameras, not speed cameras and as Minneapolis is a fixed monthly amount contract numbers do not make any difference for the RTS revenue. In the future speed cameras will be a big boost to the RDF bottom line but I doubt if they will make much difference to the 04/05 result. Intersection speed cameras and stand alone speed cameras are really only now starting to be installed, 5 at Bellwood, IL should go in shortly, 6 or so on Loop 101 at Scottsdale, school zone speed cameras at Albuquerque plus a few others.

The big boost for speed may come if Redflex wins a few Tennessee cities, Knoxville, Chatanooga and Nashville in the next 6 months. All have RFPs out and each includes a whole lot of speed cameras as well as red light cameras. Memphis is also talking red light and speed cameras. Plus of course Albuquerque will most likely switch on intersection speed and the Texas cities all seem to be thinking combos as well. Then you have Chicago city now talking of switching on intersection speed plus taking a number of speed vans.
Should be an interesting 12 months.

As you would know the Ohio legislation has only passed one of 6 or more steps, highly unlikely that even if it does survive it will be anything more than legislation allowing existing contracts to remain but stopping new ones. My feeling is that it will be knocked out but on the chance it does survive it will be watered down to just being a firm set of guidelines for running a program.

As you are in Houston keep your ear to the ground. Both Nestor and ACS have been criticised extensively in the media there for their very public attempts to affect the political process there, the fact it is going to trial evens the playing field somewhat with the Mayor at least appearing to be fairly impartial. I was not aware that installation of the trial systems has actually started, who are on the shortlist?
At a guess it would be Redflex and ACS. there would have to be a question mark over Nestor because of their huge amount of red ink but the ex Houston councillor who now works for Nestor may have got them into the cut.