A lot of posts to catch up on today, as I was on the road for a lot of it. Just for disclosure, LVGO is (still) my largest position, and I’m holding for now, mostly for the same reasons that CloudAtlas put much more eloquently than I could, here, in his “rebuttal” post (#70310), to all the announcements of folks exiting LVGO:
I’ll continue to hold while I learn more, and determine whether the new company is one I want to be invested in. Don’t want to make a rash decision as I would have a huge tax consequence if I exited my LVGO position, the likes of which I’ve never had to deal with before (a good thing! ).
But of all the comments I read today about this deal, I’m most puzzled by this one from Bear:
LVGO / TDOC is no longer hypergrowth.
??? What ??? That really sounds like you just have an ax to grind with one of these companies, as it’s just flat out untrue!
TDOC growth the last 2 quarters went from 63% to 85%!!
LVGO growth the last 2 quarters went from 115% to 125%!!!
Those rates are the top echelon of any and all companies discussed here (except ZM, of course). Why would you state that this is no longer hypergrowth? Accelerating growth rates of 85% and 125% is the definition of hypergrowth! It’s exactly what we look for in companies. I’m not guaranteeing those rates will continue, but I’ll bet they’re going to continue to be very high! I thought we followed the numbers here, and those are the most recent ones for these companies, yes they have some COVID tailwinds working in their favor for the last 5 months, but so do ZM, CRWD, DDOG, and FSLY (maybe?). I conpletely understand folks getting out because the thesis has changed, it has(!), but I don’t feel there is a rush to get out, I’ll take my time to see if I want to stick with the new company, and I think I might, from what I’ve read so far. Combining 2 high growth, disruptive companies, with synergies and complementary business models, in a growing, massive industry ripe for disruption sounds like a pretty good recipe for success (if management is up to the task). I hope they are, I don’t know much about TDOC management, I only owned LVGO, but TDOC hasn’t done too shabby, either.
BTW, for Bert followers, he gave his thoughts on this subject to his Ticker Target subscribers tonight, and as always, well worth the price of admission, whether you agree with him or not, plenty of good info in his article to consider!