Healthy consolidation for Capitol

The diagnostic imaging services company has retraced amid fears the federal budget will reduce funding to the industry.

We first identified Capitol Health (CAJ) in July 2014. At the time the stock had declined to $0.42 due to concerns over proposed changes to government healthcare funding after the 2014 May federal budget. Fast forward ten months, and the market again has the same concerns with the budget due to be released on Tuesday, May 12.

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