Teladoc Health: Down But Not Out

Dec. 19, 2018 11:16 AM ETTeladoc Health, Inc. (TDOC)19 Comments
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WG Investment Research


  • Teladoc Health's stock is down big over the last three months.
  • And the recent departure of Teladoc Health's Chief Operating Officer/Chief Financial Officer added fuel to the fire.
  • However, I believe that TDOC shares are still worthy of investment dollars. I am long Teladoc Health and I plan to stay long.
  • This idea was discussed in more depth with members of my private investing community, Going Long With W.G.. Start your free trial today »

Teladoc Health's (NYSE:TDOC) stock has faced significant downward pressure as the broader market pulled back over the last few months but, more recently, the high-level personnel issue (i.e., the COO/CFO resignation) added fuel to the fire.

ChartTDOC data by YCharts

The stock has actually performed well so far in 2018, even after factoring the recent dip, so some shareholders may still be sitting on a nice gain for the year. So, the question is: does the personnel issue make the stock a sell? In short, no. However, I do believe that Mr. Mark Hirschhorn's, Chief Operating Officer ("COO") and Chief Financial Officer ("CFO"), resignation adds risk to the story.

Is The Personnel "Issue" A Reason To Sell?

It was only a few days ago that Teladoc refuted SIRF's, or Southern Investigative Reporting Foundation, report that Mr. Hirschhorn had a relationship with a former Teladoc employee. Even more damaging, SIRF reported that Mr. Hirschhorn and the former employee traded TDOC shares together (a topic that has not garnered much attention yet).

While the company did admit to disciplining Mr. Hirschhorn for violating workplace policies, the thought that management turned a blind eye to these violations was refuted.

On December 17, 2018, Teladoc announced that Mr. Hirschhorn resigned from the role of EVP, COO and CFO, effective January 1, 2019. The company already began the search to fill the COO and CFO roles, while internal candidates fill in on an interim basis, but let's not act like Mr. Hirschhorn will be an easy act to follow. Mr. Hirschhorn has played a significant role at Teladoc over the years and, from a financial standpoint, he is a major reason why the company is where it is today.

I say all of this to say Teladoc will need to find some very capable people

ChartTDOC PS Ratio (TTM) data by YCharts

This article was written by

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Our President and CIO is a CPA with experience in public accounting and the financial services industry. He earned his Master of Accountancy degree in 2008 and his B.S. in Business Management in 2007. He is also a Level III CFA candidate. He has been intrigued by the market from the start. Over the years, he has learned that long-term investing is a discipline that, if followed, will help contribute to building lasting wealth. As such, most of our articles will be about the investments that we plan to hold for at least 3 to 5 years, as long as the company's story does not change. As a Seeking Alpha contributor, our main goal is to write about the companies that are key to our portfolio with the hope of promoting discussion (for or against the investment) from others within the SA community.Please visit our website for more information about W.G. Investment Research LLC.

Disclosure: I am/we are long TDOC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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