The whole health sector is current being hit with the...

The whole health sector is current being hit with the uncertainty caused by the budget. There is no doubt this sector is up for hard times in coming years as it will be screwed by the State Govts with the loss of Fed funds. So CAJ's weakness right now just a wheel wobble due to its high P/E ratio in a weak sector.

I think we will continue to see continued CAJ price weakness until the next half yearly report. However with the extra 5 MRI machines coming on line, we should see continued NPAT growth flowing into 2015.

Personally, I expect zero impact from the co-payments, so I am holding this LT. The biggest risk in my opinion is P/E ratio contraction purely due to sector weakness.


Cheers
Gosouth