Capitol Health (CAJ)

B

Bullion Stacker

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Anyone hold this stock?

I'm in today at 40.5c, perfect timing for me.

Oversold in my opinion, great future prospects with continuous expansion.
 
Big drop today, seems to be a lot of stocks overreacting to a hint of perceived bad ish news,,,,eg NST.
Been on my radar, happy to jump in tomorrow at .35, sure it will do well this one.
 
I dunno - stock was trading at about 50 times PE - doesn't take much to shake that down.

And then they top it off with hiding an update last night in an announcement (Vic operational weakness, lower anticipated referrals, revenue for full year expected to be down 4-6% on forecast), put it at the end, marked it non-sensitive and then tried to bury it by announcing something this morning! Very bad practice.

And that's not to mention the fastest 3Y announcement (change of director's interest) in stock market history! Very suspicious this was a "Oh crap - the share price is tanking - quick someone buy some shares and announce it to the market."

Not saying the share doesn't have potential. Just saying management is not instilling confidence.

malachii
 
malachii said:
I dunno - stock was trading at about 50 times PE - doesn't take much to shake that down.

And then they top it off with hiding an update last night in an announcement (Vic operational weakness, lower anticipated referrals, revenue for full year expected to be down 4-6% on forecast), put it at the end, marked it non-sensitive and then tried to bury it by announcing something this morning! Very bad practice.

And that's not to mention the fastest 3Y announcement (change of director's interest) in stock market history! Very suspicious this was a "Oh crap - the share price is tanking - quick someone buy some shares and announce it to the market."

Not saying the share doesn't have potential. Just saying management is not instilling confidence.

malachii
Click to expand...

Couldn't agree more.
I personally believe the 200k shares purchased were announced purely to try slow down the hit.
Although the market seemed to ignore the agreement with Enlitic.

I took a hit today from my purchase at 40.5c, although I still believe this will work out long term.

I kicked myself for not buying two years ago at 38c before it ran up to over $1, not going to let it happen again.
 
Yeah I got in today at 40.5c today as well.

I'm currently a final year med student / doctor next year and from what I can see the doctors that I have seen working are referring to Capitol and at this price I think it is good buying especially as the PE is quite low now and dividend yield is pretty good for a growth stock at this price!

Just my 2c
 
malachii said:
I dunno - stock was trading at about 50 times PE - doesn't take much to shake that down.

And then they top it off with hiding an update last night in an announcement (Vic operational weakness, lower anticipated referrals, revenue for full year expected to be down 4-6% on forecast), put it at the end, marked it non-sensitive and then tried to bury it by announcing something this morning! Very bad practice.

And that's not to mention the fastest 3Y announcement (change of director's interest) in stock market history! Very suspicious this was a "Oh crap - the share price is tanking - quick someone buy some shares and announce it to the market."

Not saying the share doesn't have potential. Just saying management is not instilling confidence.

malachii
Click to expand...
Just quickly Malachii, how did you arrive at a PE of 50? Commsec is showing a PE of 20 for me?
 
malachii said:
I dunno - stock was trading at about 50 times PE - doesn't take much to shake that down.
Click to expand...

Operative word here is "WAS" showing a PE of 50 - back in April when it started it's roll over. Price has moved way down since then (dropped about 66%) so yes the PE is back to around 15 at the moment.

Understand that my comments weren't about whether the share price has bottomed or if this is a good trading/investing opportunity. It was more about the fact that the market has recognised there are problems and has been repricing it because of this since April. The fact that they (management) have tried to hide the most recent "problems" goes to bad management and as a potential owner of the business - I need to know I can trust the management that is working for me and in this case - they are showing that I can't (in my opinion). No matter how good a business is - if management is bad/dishonest/problematic/self interested etc then the business will continue to suffer.

MAYBE the share price will correct from here. Maybe not. But one thing is for certain - if you own the business or are looking to own it - you need to go over EVERY single announcement with a fine tooth comb!

malachii

PS - and for me a P/E of 15ish with a dividend of 3.5%, suspicious earnings growth potential and in a definite downtrend and management that may or may not be trying to hide things.......well - I can find better opportunities where I feel my money is safer and more cared for. I would want to see a consolidation of price and more information on if these problems in Victoria and elsewhere are a short term or long term thing. Remember a lot of sins can be hidden by a company purchasing businesses. This is obviously my opinion only and you need to do your own research.
 
Silverstrat said:
Big drop today, seems to be a lot of stocks overreacting to a hint of perceived bad ish news,,,,eg NST.
Been on my radar, happy to jump in tomorrow at .35, sure it will do well this one.
Click to expand...

A 37% drop!
Sure it's not something with the company instead of a lot of stocks going down in general?
 
Well done to all who bought yesterday. Seems it was oversold like I predicted.

If only I had bought at 0.355 and not 0.405.

Ah well, I'ts looks as if we'll be at 0.45c by mid next week!
 
How do you know it's not simply retracing/consolidating some of the losses from yesterday before heading back down again?
 
Caput Lupinum said:
How do you know it's not simply retracing/consolidating some of the losses from yesterday before heading back down again?
Click to expand...
I don't know, hence why my selling point is 45c and I'm out.

Even though there are many uncertainties, I think this should pan out okay long term, although I'm not going to take that risk.
 
Ramp downs don't get any more solid than that:
Q3QWhrE.png


All time low is 2.5 cents.
 
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