$TDOC multiple signals buy (4/5)

NYSE:TDOC   Teladoc Health, Inc
Conviction: 4/5

Main thesis
  • Retrace to .786 fib level from 2016 lows. This is an unconventional level but it coincided with medium-term resistance from 2009-2020.
  • RSI-W touched historical bounce area (however, if we wait for bullish divergence there could be another leg down)
  • RSI-D showing bullish divergence
  • Touching lower bound of channel (2016)

Misc Info
  • P/S level of 7ish is high on absolute level, but on lower end of range relative to other high growth names
  • Healthcare ( XLV ) looks good compared to SPY , could carry this up as well
  • High margin and high growth
  • Very healthy quick ratio

Potential Risks
  • Bullish div = another leg down
  • Very negative FCF (not sure why?)
  • Channel does not include last major recession (2008)
  • General markets are very expensive, and we all know correlation goes to 1 in selloff.
  • High growth / expensive names seems like will sell off more than general market


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