Redflex seems to be running out of gas— literally and figuratively.
The photo radar vendor is facing the possibility that its biggest co-conspirator in crime and cheerleader-in-chief, the Arizona Department of Public Safety, may be forced to “review” the contract due to a possible state government shutdown:
A clause allows DPS to cancel the contract when in the best interests of the state, without penalty or recourse.
Despite endless propaganda by the state policing agency, the truth has finally come out: photo enforcement is a “non-essential function,” and not a public safety function:
The agency is reviewing all non-essential functions in case the threatened shutdown becomes reality.
Direct attacks against the cameras continue. On Thursday, an unidentified person took a sledgehammer to an automated ticketing machine on the SR51 near Bethany Home Road. In a complete attention-whoring move, DPS dispatched their helicopter to the scene to attempt to catch the vigilante. (Good luck getting that level of response when you report property damage.)
Redflex stock appears to be running out of fuel faster than a parked, idling talivan. From Jan 2 – June 19 09, RDF has fallen a staggering 36.96% on the Australian Stock Exchange. Redflex recently ended a potential sellout process when no “suitable” offers were received for the purchase of the firm.
So what do you do when your stock price plummets? If you’re Redflex, you use the tragic fatal shooting of one of your drivers as a scapegoat for a projected earnings reduction. Not everyone is buying it:
A cynic familiar with the stock questions the degree to which the profit downgrade can be sheeted home to the shooting. “It shows how fragile their business model is as they have to rely on recurrent income from fines for their capital,” he says.
Stay classy, Redflex.