From the Age this...

From the Age this morning
http://www.theage.com.au/news/Investment/Make-a-few-safety-checks/2005/04/12/1113251622487.html

While there is still a lot of speculative money in the sector and the majority of companies are best avoided - 65 per cent are rated distressed or marginal - Lincoln believes closer analysis can uncover some real gems.

Lincoln's director of financial services, Paul Saliba, singles out Redflex Holdings, which develops and installs traffic systems for local and overseas markets.

Redflex has turned itself around from a loss-maker to a company with a $4 million profit before tax. Consequently, return on assets increased to 11 per cent in the December half from less than 3 per cent in the previous corresponding period.

While Redflex is trading on a high price-to-earnings ratio, the PEG ratio indicates it is still good value (see box). Even better, it provides a chance for everyone caught by one of its speed cameras to recoup losses.