The total reported decline of SCRA at the end of the day last Wednesday was 2.86% and the closing price was $0.102 for a share. Over 9 million shares were traded and during the session SCRA hit one more time the $0.083 bottom. Thus, the surge of the share price on Tuesday on the announced agreement with the Bahamian government remained a one-day event that received almost inconsiderable traders’ attention.
It actually looks like the company cannot raise the market’s optimism through the many press releases it has been issuing recently, although this time the agreement has been confirmed through a corresponding SEC filing. The filed agreement confirms the information given in the published press release, but the grounded doubts if the deal is that historical and can make SecureAlert’s business finally profitable remain.
According to the filed with the SEC agreement, the company states that it will provide electronic monitoring equipment and services for offenders on behalf of the Bahamian Ministry of National Security for a period of three years. With a payment rate of $15 per day and per TrackerPal device provided for the initial minimum amount of 500 devices the given in the press release annualized contract value of $2.7 million sounds realistic.
Unfortunately, that amount is still less that the operational costs per quarter and those cost will have to be cut off before some truly “historical” development for SecureAlert can be announced.
