Business Analysis of Teladoc: Live Long, Livongo

Business Analysis of Teladoc should consider the impact of the Livongo acquisition
Cash Flow Analysis of Teladoc

Here are our key takeaways from the business analysis of Teladoc:

  1. Teladoc reported 9.6 losses as impairment due to the Livongo acquisition. But it is noncash, an ‘unreal’ loss, and just an assumption.
  2. Teladoc stock price falls more than 90% from its all-time high at 292 levels (July 2021) to 32 (August 2022). With its advantage as a prime mover, many investors assume that Teladoc is an opportunity.
  3. We beg to differ. The problem of Teladoc is in its underlying business, not Livongo. Livongo is okay, but the acquisition of Livongo can’t help Teladoc cope with the main problem.

Lets elaborate.

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Fundamental Analysis of Berkshire Hathaway: Misconception


Key points of Fundamental Analysis of Berkshire Hathaway(BRK):

  1. Officially, Berkshire Hathaway is transportation, energy, and an insurance company.
  2. Due to its area coverage and economies of scale, Berkshire’s transportation business enjoys a cost advantage over its competitors.
  3. Berkshire’s insurance enjoys a switching cost advantage.
  4. Berkshire’s business is durable, and reliable in the long run, but it is slow. What makes Berkshire’s price rise is probably due to its stock investment and buyback.

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Fundamental Analysis of Rivian: The Next Tesla?


Key points of Fundamental Analysis of Rivian:

  1. Unlike other EV makers, Rivian has a durable competitive advantage with Amazon on its side. But we don’t know how much this edge contributes to Rivian’s revenue.
  2. We are still curious about how Rivian will transform in the future. Will it be Amazon’s arm for delivery or become an EV maker that specializes in SUVs?
  3. Conservative management, we like it. Low debt, and a high amount of cash – may be due to part of the Amazon deal and other investments. Unlike the other start-up.
  4. The business model has not yet been proven.
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Fundamental Analysis of Starbucks: Reckless Buyback


The key point of the fundamental analysis of Starbucks

  1. Reckless buyback is the factor why we do not buy Starbucks.
  2. We are happy when Howard Schultz takes the Starbucks helmet and decides to suspend that buyback program.
  3. But when he said that the suspension is just a pause (Schultz wants to resume the repurchase program) We worry that this pause is just lip service to calm the Starbucks worker.
  4. Revenue and earnings have surpassed the pre-COVID level. It is a good sign.
  5. Starbucks has a decent competitive advantage in its brand. It creates a unique user experience – also a story. Something that almost no other ” restaurant” could replicate. Even with its mediocre coffee.
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Intel Stock Valuation: Calculated Speculation


The key point of Intel stock valuation:

  1. Intel’s market cap is 148 Billion (end of July 2022) with 19.8 Billion earnings in 2021. It means that you need 7 years to break even. Too long for a company with no growth prospect like Intel.
  2. Even when the CHIP program is passed and executed, it will not boost Intel’s earnings significantly.
  3. It is not difficult to say that we don’t recommend investing in Intel. But it doesn’t mean that the stock price will not rise in the future.
  4. Like the management says, maybe this is the bottom. But we don’t know how long Intel will be in this pit. But smart investors still could exploit this situation.
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Disney Stock Analysis: Ads, Park


Our takeaways for Disney Stock Analysis 2022, begin with the pros:

  1. Sticky customer, kids watch Disney again and again. Come to its park every holiday.
  2. Theme Park shows significant improvement. We believe this year it will achieve its pre-COVID performance. Another good news is Disney keeps enhancing its places. Elaborate later.
  3. Though till now Disney+ still burning cash to run its business, the ad-supported content will be the game changer (unlike Netflix). Disney’s content is specific, family-friendly, and targeted. It is good for a third party to access Disney viewers. We will elaborate on this later.
  4. Disney stock price is at COVID level (July 2022)

Cons:

  1. Disney runs an expensive business that needs a high amount of capital. Theme Park requires massive investment, even their digital content needs regular reinforcement like the Fox acquisition in 2017. Unfortunately, Disney’s balance sheet isn’t as spectacular as its magical story to handle all of that needs easily.
  2. Management fails our expectations. Under though situation – the COVID – they prioritize themselves and leave shareholders.
  3. Lack of tailwind. The key driver for growth is increasing Disneyland ticket or subscriber fees. Reaching more people is more difficult. Disney is simply not a fast grower company.

Ok, now going to the elaboration section. You can skip this post if you don’t want to go into further detail.

Oh, don’t worry – we keep this post updated regularly.

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Is Nvidia a Bargain Stock to Buy? Reality Checklist


Nvidia stock falls from 300 level in November 2021 to half of its value at approximately 150 level in June 2022. Is this a rare opportunity or an alarming bell for the chip industry? We try to analyze its revenue, business model, and issue regarding the chip industry. In the end, we hope the investor could answer: Is Nvidia a bargain stock to buy?

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Analysis of Nvidia Stock 2022: The Money Game

images source: freepik.com

TL, DR for Analysis of Nvidia stock 2022:

  1. Even under the company’s plan to transform into an AI platform provider, the gaming sector still becomes the backbone of the business.
  2. AI still offers massive opportunities. We have metaverse awaiting along with more AI adoption.
  3. Nvidia’s competitive advantage is solid, especially after the Mellanox acquisition.
  4. The most powerful edge of Nvidia is the connection with another big name, making it the most compatible chip manufacturer in terms of gaming, AI, auto, and design.
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Meta Stock Analysis: Metaverse Do Nothing


Image source: freepik.com

TLDR for Meta stock analysis:

  1. The transformation from social media to the metaverse is still far away.
  2. Apple’s privacy policy or even followed by Google will not slash Meta earning capabilities, it just slows the growth.
  3. Meta’s strong balance sheet will help a lot in the transformation into a meta-universe.
  4. The buyback program gives us a glimpse of the management in shareholder shoes.
  5. Even though Meta has an outstanding competitive edge, when it can’t be monetized, it is useless. In the metaverse case, the situation is worse. Meta has no sustainable competitive advantages. Not Yet.
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