lord elphus, watch those tea leaves---too much will give you tannin poisoning. Just joking but any comprehensive look at the RDF of today would tell you that, whilst charts are indeed helpful, they certainly are not the be all and end all. You go down the strict T/A road with this company and you will possibly miss a lot.
hill and stoss, most Californian contracts pre 31/1/04 were per citation issued or per citation paid. Legislation effective 1/1/04 was passed in CA making all future contracts to be on a fixed monthly amount per approach. Not that the old per citation contracts were inferior for RTS, far from it as some of those per citation CA contracts around L A have huge numbers. So Redflex now have what I believe is a good mix of per citation issued, per citation paid, fixed monthly, outright sale plus monthly running fee (the likes of Chicago, IL and Savannah, GA) and various mixes of the above.
Fixed monthly are becoming more common, not only in CA, one reason being that the contractor is then seen to be divorced from any possibility of influencing court cases by their testimony and thus earning more in a per citation process. Much the same effect as the fixed monthly effect is achieved with the per citation issued contracts, the contractor is paid for each citation issued (as distinct from paid) and thus once again has no perceived interest in the outcome of any challenges to citations.
As far as the larger fund type investors go fixed monthly would be viewed as the type of true annuity style revenue they always favour and I guess the mix RTS has at present gives them that plus some blue sky as well.
RDF Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
