watch rdf double in price, page-9

Hilldweller

Your concern on revenue is valid. There will be a drop off over time in revenue and I would say that the announcements have allowed for this, so revenue in the early part will be higher than the average and lower later.
There are a lot of other factors also at work such as over time fines go up, RDF get more per fine but there are less fines.

Also there a 4 types of payments
Fee per citation paid
Fee per citation issued
Fixed monthly rental per approach
Outright sale with yearly maintenance fees(rdf has none of these but it looks like Chicago will be the first)

I think as time goes by and the profit results improve some of the concerns around the company will disappear. The company has been a bad market performer and justifiably so as they have always underachieved expectations. This time last year the company could have gone broke, they had no money, great product and contracts but not much use with no money. But since then the chairman has gone , the board has changed and the company has made the hard decisions such as a large share issue, they now have a loan from NAB. So from early this year they were in a position to finally realise some of the value (install camera's) in the company
But the concerns still remain but they are slightly different now. It's more of will they really make the large profits and until such time that this is in black and white many potential major purchasers wont act. They would rather pay $1.20 in 6 months than 77 cents now or 48 cents less than 6 weeks ago . They will wait. My reseach say's this is just an outstanding buy. One of the best i have seen

what you have is a small company which at the current rate of growth in 12 months will be the biggest digital red light/speed camera company in the US. The biggest compeditor ACS has around 600 approaches but these are all old wet film. No one wants wet film they all want digital and RDF continue to beat ACS in any head to head contests
RDF won Oxnard from ACS. ACS was the incumbent which makes it even more impressive but the most impressive win is Chicago.
The chicago tendor has around 12 bidders which was reduced down to 2. RDF and ACS who then both had to install camera's at a intersection and run a head to head trial for a month.RDF was selected. I personally did not expect this. RDF has the best technology but It was hard to believe that the better solution would overcome the political and financial muscle of ACS. ACS is a $US5.8 Billion market cap and RDF is $us36Million

The impact of this win propells RDF onto the radar screen of any city looking at red lights . The marketing impact is worth much more than the Chicago win which by itself could easily be more than 100 approaches over time. By itself the chicago contracts will be huge and the marketting benefits even more

The US market is in its infancy stages. Probaly 10 to 15 years behing Australia.The civil libertarians are still arguing that it's unfare to motorists that a "machine" can be used to catch motorists who are killing people by running red lights. In the US unlike Australia hundreds of people are actually killed and thousands injured by red light runners. It is a serious problem. We are talking about intersections where the speed limit is 45Miles per hour and people are speeding and running the red light through these intersections at speeds of 50 and 60 miles per hour. Clearly the civil libertarians are loosing

The other factor which is not even on the radar screen yet are speed camera's. These are absolute money machines as any australian would understand. But they are only legal in 4 states. But the civil libertarians are loosing this one too.

Just consider this, RDF at this stage would be the favourite to become the biggest red light camera company in the US, even if they were in the top 5 in 10 years they would be huge. At this time you cannot even find 4 genuine compeditors. Now overlay the fact that speed camera's will be legalised accross the US. RDF have the contracts with the cities for red light logically they will also get the speed contracts. Then consider that the cost to upgrade a existing camera for speed is less than $2000 a camera. The existing camera's are already speed capable, its just a plug in card upgrade. Now add on that speed camera's catch a least 4 times more offfenders than red light. Revenue just exploded and the cost was insignificant.

The numbers get so dam big i need a calculator with a larger number display. Even if I divide my numbers by 10 they are still huge.

But it's long term , the snowball is still at the top of the hill. To get the ultimate returns this is a 5 to 10 year investment.

Even so the current share price would be well over a dollar if even a reasonable number of investors had a inkling to the real potential here.