rdf flashes in chicago, page-11

Stoss,

I see your concerns but my hunch tells me that they loaded the expenses on the last half of last year. I really have no proof and hope I am right.

My reasoning is that they kicked out bh and wanted him to look as bad as possible so they took as many expenses they could during that period. They then issued themselves healthy options in hopes to come out with a significantly improved half year at the end of feb to show that this group of management is doing great. The share price goes up and they make a killing on the options.

I have no inside knowledge and this is really just going with my gut. I have seen this happen a million times in the U.S. and all their moves look like they are playing this game. I really hope I don't get burnt on this one cause there really is no way to know that I am right till the report comes out.

That being said, even the margins have diminished, the potential for rlc and speed are there in my humble opinion. They are signing up cities right and left and this new pace of about 1 a week is phenomenal. I actually can see that improving by a large factor and when you mix in speed there is truly great potential. I think that while the margins might not be as high as was originally expected, the volume of business will make up it. They are winning 50% of the contracts right now and it seems every city is lining up to get in this game.

I do understand what you are saying and I am not trying to persuade you or anything. If the margin is there it does make sense to buy in at a higher price and just ride the wave for a few years. Best of luck to both of us.