praise the board, page-5

"If COA board thinks the stock is worth more than 6.4 why on earth isn't the stock there at the moment?? "

It will be.

THAT IS THE MILLION DOLLAR POINT.

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A supportive backdrop is offered by solid demand growth for at least the next few years driven by ongoing resources, infrastructure investment and related maintenance activity and a renewed focus on lifting operating performance. The outlook for Allied is improved now the Allplant acquisition is integrated and reinvestment in equipment is reduced. FY08 has started well with management reporting positive trading in the first two months and a growing order book for key customers. Guidance of 15% NPAT growth appears achievable according to our forecasts of 6% organic 6% sales growth, some margin gain and contributions from newly acquired Prime assets. Cash generation should improve should management stick to its guidance for a 20% decline in capex to $250m through lower investment in the hire fleet. No change to our $6.50 intrinsic value estimate. FY08 NPAT declines slightly. The modest forward PE of 11 times understates this company's potential. EPS growth is likely to be above 16% pa over the next few years, over which time the stock should trade on a PE of 12-14 times. The fully franked 4.5% yield is attractive. The exit of short term traders from this stock provides a good opportunity for longer term investors to take positions.

Buy.