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  5. TDOC: I have considerable difficulty justifying TDOC’s fall from around $300 to present day levels of about $9, after a further low, in the absence of malfeasance, some sort of conceptual shortfall or so... [Teladoc Health Inc.]
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Q: I have considerable difficulty justifying TDOC’s fall from around $300 to present day levels of about $9, after a further low, in the absence of malfeasance, some sort of conceptual shortfall or some other equally catastrophic event. While I also disagree with much of what Warren Buffet says the exception is his dictate “know your company”, as each commitment of your “hard earned” funds is a commitment in that particular company. While that achievement may take a while it is essential.

On this side of the border we have WELL which is involved in a similar industry, and for want of a better description continues to disappoint after a significant (four year) gestation period during which it should have found its feet, which I suggest indicates an undeclared conceptual difficulty which was either not anticipated or whose execution has taken much longer than anticipated to adjust to and accommodate.

Your observations and prospects for WELL would be appreciated along if possible with some indication of TDOC fortunes. I look forward to your response.
Asked by Mike on October 04, 2024
5i Research Answer:

We have numerous posted comments on WELL. Despite its weak stock performance, its execution of its strategy is intact, and it continues to move forward. We would expect more M&A going forward, and it does need some catalyst to get investors interested again. But if one looks at revenue and cash flow and not the stock price, things look better. We continue to have faith in management until proven otherwise. TDOC was going to change the world during the Covid pandemic, and investors bid up the value for its 'future'. But then the pandemic ended and the future is not what investors expected. This combined with execution issues and missed guidance, resulting in investor disappointment and a change in sentiment from 'hero' to 'zero'. Now, it is a small company, barely larger than WELL and continues to lose money, with more losses predicted. WELL, meanwhile, is now making decent profits.