Just got a copy of the March edition of "Smart Investor" and...

Just got a copy of the March edition of "Smart Investor" and noticed COA mentioned as a possible private equity play.

COA is considered to be attractive principally because it is undervalued.

Here is what they say ....

"Equipment hire company Coates is exposed to the cyclical mining sector and the non-residential construction market. For some, this negates any upside for buyers but the company remains at the centre of speculation because of private equity involvement in similar businesses in New Zealand. Solid performance and a positive operating environment make the company attractive, but any more debt would stretch the earnings interest cover to four times, which is aggressive for this industry according to Deutsche Bank analysts."