The media will tell you more than the company will. The problem with Chicago was that Redflex didn't disclose the incident for 2 years. That's what the ASX ANN didn't say. There's dozens of recent articles on RDF in Google news, which say what contracts RDF has applied for, or has recently received. RDF is one of those companies that doesn't put out ANN's for each contract, but Google will tell ya.
I concur with WHY: is the band broken or is it just impaired? Looking at the current Top 20, from the Annual Report, it seems there has been some jostling for position, and more of the share registry has been taken up- from 73% for top holders last year, to 75% this year:
J P Morgan Nominees Australia Limited 15,874,278 14.39% Investaco Pty Ltd 8,257,587 7.48% Thorney Holdings Pty Ltd 7,558,439 6.85% Macquarie Radar Holdings Pty Limited 6,637,953 6.02% Macquarie Special Situations Master Fund Limited 6,637,952 6.02% Ms Cheng Man Oy 6,182,252 5.60% Mrs Elizabeth Geraldine Cooper 5,217,884 4.73% National Nominees Limited 4,985,968 4.52% Blue Jade Pty Ltd 3,748,541 3.40% HSBC Custody Nominees (Australia) Limited 3,316,482 3.01% BNP Paribas Noms Pty Ltd 2,470,698 2.24% Vertex Bianca Nominees Pty Ltd 2,149,944 1.95% Mr Christopher Austin Cooper 1,750,054 1.59% Mr Graham William Davie 1,706,470 1.55% O'Connor Holdings Pty Ltd 1,571,215 1.42% Coningsby Nominees Pty Ltd 1,415,668 1.28% Macrihanish Pty Ltd 1,356,228 1.23% Character Home Sales Pty Ltd 697,212 0.63% Investaco Pty Ltd 661,465 0.60% Vertex Bianca Nominees Pty Ltd 657,906 0.60% Top 20 Holders of Ordinary Fully Paid Shares 82,854,196 75.09% _________________
This article in the AFR says that Chris Cooper, the naysayer of the previous takeover attempt, was considering accepting around $2.50 before the Chicago incident. Now, a takeover is a bit more uncertain (for AFR members or take a free trial):
If "Redflex", the brand is tarnished, I reckon ATS, its US counterpart, could think of taking over the business, and rebadging with its own name. Not sure how that would go re a monopoly. There was also a German company who was thought to have run a ruler over RDF in the takeover days.
At year lows now, if this scandal remains confined, RDF will be good value, If not confined, reputational issues could have a real sting at RDF's bottom line. If we see more funds buying in at these levels, that's a positive.
Former holder.
RDF Price at posting:
$1.52 Sentiment: None Disclosure: Not Held
