No. of Recommendations: 3
For those with a Rule Breaker subscription, a very material article was post there. I just commented on it. I will just state, that at this point, I don't care of TDOC were to become the next Vertex (its not, and it won't) but it is not worth investing in if character and quality of management is an issue for you.

I have dealt with issues like this in my law practice, including in a NASDAQ listed billion dollar corporation that had its stock price soar and was eventually bought out, rewarding insiders and investors very nicely. So it is not that such things don't happen. But these things, although arising from within business, are handled on a personal manner outside of business, never crossing the lines.

That is not what happened with TDOC.

Given it was just discussed I will embargo the information for a few days if you guys don't find it for yourself.

I also have experience working in corporations where such lack of character exists and investors are just a means to cash. We have also seen such corporations during the internet bubble. One egregious example had the CEO come on CNBC and law completely to the face of all the viewers multiple times. Lavish parties, using the company as one's own personal fiefdom (and this was not a small company at all), using margin to enhance one's own share holdings (because 9 figures was not enough) it of course all came crashing down.

Is TDOC like that? Probably not. But since TDOC has so little in regard to what looks like business leverage, so much in "free" money (investor money was used to make more than $600 million in acquisitions), it is even more important to have faith in the integrity of the management team putting all this together. Only they have the insight to know if they are just buying revenue, or buying and building a business with leverage.

Hint: Small acquisitions can turn into huge returns, bit and frequent acquisitions very rarely turn into anything worth the cost.

Makes me much less willing to trust the plan of this management team.

But each to their own due diligence and opinion. There are far more places to invest, and with management teams that probably have more integrity and ethics...(still a not common thing I think on Wall Street - something we have to live with).

Tinker
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