up t $3.91 today, page-17

re: paul100 re grant Hi Paul,

The CSFB initiation of coverage came out on 6/12. DCF of $4.03. TP of $4.00.

Key positives:
1.
First mover advantage in the USA;
2.
Speed enforcement only parrtly accounted for in the valuation /price;
3.
business model.

Key negatives:
1.
business execution;
2.
legislative risk;
3.
limited saftey margin in valuation (and terminal value risk).

On balance, I considered the SSB report more balanced /reasonable than the CSFB report. Both reports, however, have contributed to the debate (ie: introduced new discussion, variations to a theme).

I have not seen the Morrison report.

Currently, the share price is rather full. However, as a growth stock, it is quite arguable that RDF will move forward in spurts, rather than in a steady progression. This suggests that it will be tied in heavigly with the award of new business (etc) - for which the opportunities are considerable. CSFB currently estimates effective USA market penetration at ~1%.