Capitol Health hits an air pocket

The market has punished the stock for reporting weaker than expected revenue growth but the company could well reward investors over the next few years.

Capitol Health (CAJ) shares have endured dramatic price action since their addition to the Growth First model portfolio. Since the portfolio’s inception, the CAJ share price has sunk by more than 50 per cent — from 76.5c to as little as 35.5c mid last week.

Capitol suffered the biggest drop last week in the wake of two announcements. One was a short-term disappointment on revenue. The other was a technology partnership that could add genuine value to the firm in the medium- to long-term.



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