Teladoc Now Set to Go on a Tear
|Written by GSCR Staff|
|Friday, 17 June 2016 05:39|
For those of you living under a rock, or on a much needed early summer vacation, the ‘Brexit’ vote in the U.K. is next week. We think it is much ado about nothing, but it seems to be all you read about in financial market commentary. The larger issue going forward will be if other European countries follow. A German exit would essentially end the Euro currency in our opinion. We will stick to our value in our go to small cap space, healthcare.
Below is the one-year chart for Teladoc, Inc. (NYSE – TDOC - $13.36) along with the 100-day EMA metric in red, which illustrates the stock is now trading above the important technical metric.
TDOC 1-Year Chart, 100-Day EMA
Teladoc, Inc. provides telehealth services to its members and their customers in the United States. Its solution connects consumers with its physicians and behavioral health professionals that treat a range of conditions and cases, including acute diagnoses, such as upper respiratory infection, urinary tract infection, and sinusitis; dermatological conditions; anxiety; and smoking cessation. The Company offers its services through mobile devices, the Internet, video, and phone.
The big news came in Wednesday that the Company secured a major patent victory against competitor American Well Corporation. A Massachusetts federal court yesterday dismissed an infringement suit filed by American Well, ruling that its patent covering the basic provision of telehealth is invalid because the patent’s major elements are “too abstract” to be patentable and do not “amount to an inventive concept.” The stock popped 2.5% on the news.
Looking to the numbers, the Company has $120 million cash on hand with only $26 million of debt as of the end of Q1 2016. Additionally, Wall Street analysts forecast a 55% growth in top line revenue for 2016 to $120 million.
Teladoc continues to innovate along its unique product line. The Company’s mobile app won a Gold Pencil for Mobile Utility from The One Show, the prestigious annual awards show produced by The One Club last week. Teladoc’s app for members, designed by DigitasLBi, was honored with the highest award for Mobile Utility in the User Experience category. Now that the lawsuit is out of the way look for TDOC to bounce back to highs at the start of the year at the $20 by the end of this year.
Have a great day!
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