re: wins - year end hello RDF holders, i am not currently a...

re: wins - year end hello RDF holders, i am not currently a shareholder but it has come in to view for me. just for a bit of good will i dont know if you have seen the latest smith barney research report on your baby but here is some info from it. They still have a $4.18 price target and hold recomendation, research report is from May 24 2005. do yor own hoemwork disclaimer disclaimer disclaimer hahaha.

The proliferation of red light cameras in the US appears to have suffered
a temporary set back, with the Ohio House of Representatives voting 72-
23 to approve a bill that would effectively prohibit the use of red light
cameras in the state.
! This development is relevant for Redflex because nearly 10% of its US
cameras are located in Ohio. Excluding Ohio from our forecasts would
cut NPAT by 13% in FY06E, 18% in FY07E and 15% in FY08E, and lower
our DCF valuation by 10% to $4.64 (includes nothing for speed cameras).
! The bill still has to be passed by the Senate, and there are no guarantees
that it will get through. Precedents exist for such bills to be blocked; with
the Texas Senate only last Friday defeating what was regarded as the
last legislative attempt to stop red light cameras being introduced. While
like Ohio the House had easily passed several measures to outlaw red
light cameras (Feb 28 vote carried 113-23), the Senate has adopted none.
! With Redlfex currently trading on a PER of 27.8x for FY05E and 25.6x for
FY06E, the stock is vulnerable to any left-field shocks like the Ohio story.
Indeed today’s fall may turn out to be a great buying opportunity, but in a
nervous market it’s probably best to wait for further clarification.
! It’s worth bearing in mind that cameras are currently operating in only 18
US states, and the market is still at a very early stage of development –
only 2,000 out of a potential 35,000 to 70,000 cameras are installed.
! We maintain our Hold / High Risk (2H) and target price of $4.18.