CAJ 0.00% 30.0¢ capitol health limited

should spike on monday, page-36

  1. 276 Posts.
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    I agree sax. IMHO the share price is inflated if you look solely at what they have on the books right now. however the SP is probably reflecting some of the other factors. the company has very steady cashflow that is not going to dry up. there is almost no "bad debts" as the revenue is coming from government (the only way that they stop making money is if the gov change the rebates that caj receive which is not likely) at the moment investors are very risk adverse so this make caj even more desirable.

    the SP is probably also reflecting the fact that the growth potential of caj is huge if/when they move interstate-triple the market- triple the gains (or so we hope) this is also reflected in the latest div. CAJ are defiantly setting themselves up for more acquisitions otherwise the div could probably have been much higher.

    my point is that although the SP is probably inflated in terms of what they have on the books, it is probably about right given what is most likely to happen in the short term future. looking at the very short term i can see a slight pull back soon with consolidation around the high 50's low 60's then more gains in the medium term.

 
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