News: CAJ Capitol Health Announces Acquisition Of Clinics In Perth And Melbourne, page-25

Hi Champee,

Spot on summation of our recent past, present and future. I think the IDX attempt will weigh on us until we have to fess up to how much it cost. SP might take a bit of a hit when we do (those dreaded ISI's) but as you point out the acquisitions mean improved earnings next FY.

Over the last few years I have subscribed to The Eureka Report and Marcus Today. At times they have both highlighted the investment philosophy of Cadence Capital Ltd. In a nutshell Cadence say only a third of companies on the ASX make a profit (around 700 of 2100). Of these (roughly) 630 are average businesses, 35 will under perform and 35 will out perform. As we know, Capitol has made a loss the last few years but if not for the IDX T/O we would definitely be in the top 700 in the 2018 FY. Who knows, we still might. If management (and the markets behave) the company should make a very healthy profit in 2019.

As for news, not much. Just a little more Kevin from Stanford.



Happy New FY.