The share price of Capitol Health Ltd (ASX: CAJ), a major provider of diagnostic imaging services in Australia, is up 9% to $0.30 at the time of writing. In a year the share price has gained 56% to trade on a forward price-earnings- ratio (PER) of 30x. The company, expanding organically and with takeovers, will see benefits from an ageing population.
Ramsay Health Care Limited Fully Paid Ord. Shrs (ASX: RHC) in the same sector, is a global hospital group and is trading on forward PER of 23x. The share price has fallen 9% in a year, not helped by former CEO Chris Rex selling $27.2 million of shares as reported in the Australian Financial Review, as well as the CFO selling $12.5 million over 2017. The relatively new CEO, Craig McNally, has also sold shares in the previous few weeks to the sum of $4.8 million or 18% of his total holding, which cannot be good news for the company.