The Vista experience, with their first four intersections, is...

The Vista experience, with their first four intersections, is not so different from many of the cities where Redflex has installed systems. We should expect the infringement rate to drop off by 30 - 40% within six months, which will still leave a healthy revenue stream.

As far as the wider impact is concerned, we should be careful not to expect to see cities clamouring to sign up within the next few weeks. November 2 is not just the date of the US presidential election, and Melbourne Cup Day; it is also the date of the election of literally thousands of state and city officials, representatives and councillors, in the US. As politicians all, they are very unlikely to do something in the next month which could serve to alienate a significant portion of the electorate. Therefore, we should expect to wait, probably into December, before any significant new decisions are made and announced. There are two or three cities where a decision was made weeks or months ago, and which are still putting contracts in place. These will be nice announcements, but the big deals will have to wait a while.

Of course, all this time, installations are going on steadily, installing (per month) 17 to 20 of the backlog of 300 or so. Each month, the earnings increase is roughly one cent per share. So the intrinsic value of the shares just goes on increasing. If you think a PE of 15 is reasonable for a stock like RDF, then an earnings increase of one cps means that that the real value of the share has risen by 15c - and this just goes on and on, month after month.

As Paul100 said, it's not a day trader's stock, but it's very nice to have a few tucked away.