Capitol Health (CAJ)

I have been most interested in CAJ and have bought in to them at several levels. They are in a reasonable sector and management appears OK. They are expanding well and have good balance sheets. Debt also seems manageable. Why would there price drop from $1.08 to 60c?

A: Not sure whether I can really explain the price fall in Capitol Health (CAJ), apart to note the exit of a couple of substantial shareholders (MLC etc).

Also, the stock was trading at pretty racy multiples – 2015 EPS of 2.49c per share, which at a price of $1.00, put the stock on a historical multiple of 40.2 times – back at $0.60, a multiple of only 24.1 times.


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