There’s set to be a new sheriff in town when you pass through the City of Baltimore. Dethroning the groups that had automated speed and red light enforcement program for over a decade, Brekford Corp. (BFDI) won the contract and will now be booking you. Chosen from among three finalists, the leading provider of public safety technology and automated traffic enforcement solutions will assume the management of Baltimore’s 83 speed cameras and 81 red light cameras, which issue $40 and $75 citations, respectively. The news yesterday sent BFDI stock into a trading frenzy recording their highest one-day volume session year-to-date.
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BFDI Stock Chart
Market Cap: 25.65M
Close: 0.58, up 0.11 (23.40%)
Volume: 868,113
Dollar Volume: $467,741
High: 0.60
Low: 0.49
Trades: 183
Average Trade Size: 4,743
Authorized: 150,000,000
Issued and Outstanding: 44,223,569
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As if it was almost a given that the Hanover, Maryland based traffic enforcement specialists would be chosen, the news announcement on Thursday forced Brekford’s stock to trade to as high as 70% off its 52 week low set back in August. This news comes just one month after announcing a $2.2 million contract for vehicle upfitting services from an unnamed Federal law enforcement agency and a quasi-government electric power utility located in the Eastern U.S.
Are they good at what they do? Well, as of June 30, 2012, Brekford Corp. ONLY had cash on hand of $2,771,931 and net accounts receivable of $3,661,061. They were only able to book $8,236,363 in revenues for the first six months of 2012 versus $7,468,623 for the same period in 2011, an increase of only 10.28%. The effect of the INCREASE in revenues booked did however not carryover to net profit, $249,845 versus $445,035, respectively, due a an increase in SGA expenses.
Was the increase in SGA expenses worth it? Brekford booked Baltimore, the quasi-government utility contract, as well as a multi-year speed enforcement contract in the Town of Princess Anne, Maryland. With growing revenues from local agencies and cities, BFDI might not be one of the dolalr volume leaders on the OTC any time soon, but they surely are a good penny stock to have targeted for 2013 and beyond.
About BFDI Stock
Brekford Corp. is a technology services provider of mobile computer and video systems through its vehicle upfitting services to homeland security agencies and federal, state, and municipal law enforcement agencies and offers traffic safety solutions to municipalities, including automated photo speed enforcement and red light camera solutions. Established for more than a decade, the Company has provided services to branches of the U.S. military, various federal entities and numerous security and public safety agencies throughout the United States with an end-to-end suite of rugged mobile information technology, vehicle upfitting services, and automated traffic safety photo enforcement technology solutions.
Click here to view the SEC filings for BFDI.
Bottom Line: BFDI is a value penny stock for those looking for a smooth investment with little to no volatility. The increased revenue projections for the coming years of the City of Baltimore contract alone are a good reason to have BFDI stock on the long list. With Q3 numbers expected out shortly, hard numbers could send the shares into another record volume session.
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