On Thursday, Capitol Health Limited (ASX: CAJ) announced the sale of its NSW assets to I-Med Radiology Network for $81.5 million which is more than 8.5 times expected FY17 earnings before interest, tax, depreciation and amortisation (EBITDA). We believe Capitol Health’s strong balance sheet and high cash levels will provide opportunities for future acquisitions. Shares in Capitol Health Limited closed up 30.8% for the week. We own Capitol Health Limited as a market-driven investment in WAM Capital and WAM Active.
Chris is the Chief Investment Officer of Wilson Asset Management, having joined the company in 2006. He is also the Portfolio Manager responsible for WAM Capital (ASX:WAM), WAM Research (ASX:WAX), WAM Active (ASX:WAA) and WAM MicroCap (ASX:WMI).
I think CAJ have just used its get out of jail card - lucky break. Lesson learnt, one hopes. Let's see if the share price gets back to the buck from whence it went.
Nice pick up from Wilson. Let's hope they don't repeat the mistakes of the past.
Yep but lets not encourage them to spend that money too quickly Unsecured note paydown plus give time to settle the structure of the company before any new investment consideration.