CAJ 0.00% 38.0¢ capitol health limited

Still unsure why there was a big sell off this morning. The...

  1. 4,326 Posts.
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    Still unsure why there was a big sell off this morning. The current SP is quite attracting to me. The only reason I can think of:
    - Dividend skimmers exited
    - Stop loss triggered

    There are few big items highlighted in the report, see below. As highlighted NPAT reduced due to recent acquisition and related expenses however this will improve over time.

    Please see my comment and let me know what you think. I strongly believe once Enlitic is fully operational, restructure their business is a must. Their current employee expenses is really high. Good to know the breakdown of their contractor expenses.
    If they can reduce employee and contractor expenses by 30%, end of year profit will be very good.

    The business is actually not that far off compared to FY14.

    Column 1 Column 2 Column 3 Column 4 Column 5
    0   31-Dec-15 31-Dec-14 FY15 vs FY14 Comment
    1 Revenue   $    77,042,666   $   48,526,612 Revenue up 59%  
    2 Employee & Contractor Expenses   $    47,405,613   $   26,539,778 Employee expenses up 79% due to recent acquisitions Reduce employee expenses in second half 2016 and subsequence years once Enlitic is fully operational.
    3 Borrowing expense   $ 2,349,525   $ 455,177 Inerest was up $1.9M due to recent acquisitions Interest will be reduced in second half and subsequence years.
    4 Acquisition Expense   $ 1,513,499   $ 805,461 700K more in FY15 This is one off expense
    5 Computer IT   $ 1,160,782   $ 624,484 500K more in FY15 They are moving to online digital storage so IT expense will decrease over time.
 
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