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Jason Van Gaal's avatar

Welcome back.

Tdoc looks intersting also.

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Yun-Fang Juan's avatar

TDOC's balance sheet is a bit scary though. negative tangible equity.

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Jason Van Gaal's avatar

They made a really expensive acquisition near the top of the growth cap bubble. They have been writing it down for some time.

Management said on last earnings call that fcf was the focus. I'm expecting an fcf bump this quarter.

Revenue is stable. I personally believe it will trend upwards as less well capitalize competitors go insolvent and they absorb their clients.

Seems to me revenue should be pretty recession proof in this line of business?

So they are maybe trading at a 5x fcf, 20% fcf yield. If they just keep printing money they outperform s&p long term. If they reengage growth engine multiple expands to 10-15x fcf?

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