I find it odd that a competitor was awarded the Chilean contract but then did not sign in time. My concern is that the competitor took a closer look at the terms and back away because it was unprofitable. Am I being too paranoid in thinking that way? Is there any info out there regarding why the competitor backed away?
But it does appear they are taking over from a previous operator. Maybe Chile had demands that they could not fulfil? Also there are fines if TRCK does not properly transition from the previous operator.
@vanckzhu got some interesting clues from the contract:
New contract: "You must implement the National Monitoring Center, for 30 operators and
5 supervisors; the Regional Center for SimultaneousMonitoring, for
18 operators; and, enable an individual PC for each of the 38 Social Reintegration Centers"
And:
old contract: "The company must permanently provide and maintain the necessary
technology and hardware, equipment, licenses and data link to
perform the telematic monitoringfunctions of condemned and victim.
The Monitoring center, for 25 operators and 3 supervisors, and the
Regional support Centre for 12 operators must be maintained"
So between $2-6m of added revenue from new contract seems like a reasonable estimate.
Thanks for the write-up. Nice situation.
I find it odd that a competitor was awarded the Chilean contract but then did not sign in time. My concern is that the competitor took a closer look at the terms and back away because it was unprofitable. Am I being too paranoid in thinking that way? Is there any info out there regarding why the competitor backed away?
This is the contract:
https://contracts.justia.com/companies/track-group-inc-1752/contract/125527/
Doesn't mention anything about $ figures though.
But it does appear they are taking over from a previous operator. Maybe Chile had demands that they could not fulfil? Also there are fines if TRCK does not properly transition from the previous operator.
Thanks, will read!
Are insiders buying?
No, but Chairman, CEO and CFO own about 7% combined.