I bought this stock a couple of months ago when it was at 4.89.
Yesterday it made an Announces :
Coates Hire Limited Announces Strategic Review
Coates Hire Limited (ASX:COA) today announced that its Board of Directors has decided to undertake a review of strategic options, with a view to maximising value for all shareholders. The review will consider both corporate and operational strategies and is expected to take some months to complete. This follows the receipt by the Company of a number of preliminary approaches from interested parties including private equity firms.
The Company has appointed Macquarie Bank and will appoint a leading consulting firm to advise the Company on the strategic review.
In making this announcement, the Company cautions that there is no assurance that this process will result in any specific transaction. The Company does not intend to disclose further developments regarding the process until after the Board has completed its review.
The Company will continue with its business as usual during the review process.
I really like this stock when it was trading at such a low P/E, 11.xx, when the industry average at at 14.XX.
The stock income, and revenue is growing every year.
The only worring part about this stock is the debt level.
Has any one got any input about this stock ?
I believe the company that wants to take over coates wants to break coates up and sell off it piece by piece. Therefore coates is now trying to intergrate everything into one brand name coates.
Would love to hear other people option.