Teladoc (TDOC -2.03%) has been acquisitive, but whether those acquisitions have been integrated successfully or not is another story. In this clip from "3 Minute Stocks Updates" on Motley Fool Live, recorded on May 11, Motley Fool contributors Brian Withers and Brian Feroldi discuss their thoughts on Teladoc and consider whether there needs to be a management change.
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Brian Withers: I'm on the verge of giving up on these guys, and they should be kicking butt and taking names. Is there a light at the end of this tunnel or is it an oncoming train?
Brian Feroldi: That has been my question about Teladoc essentially since the beginning. They tell a good story, digital health and I buy all that. But if that's the case, why have they been so acquisitive. Why have acquisitions been such a key part of this company's strategy moving forward? Growth by acquisition works if you could integrate successfully, but man, can it be challenging if you've seen what's happened to Teladoc, integration and goodwill write-downs, and all that stuff. The best I can give you, Brian, is that the company is still growing. There is a good gross margin here, and it's trading at about 2.5 times sales, and about three or four times gross profits. Would I puke out the stock today [laughs], that's up to you to say, but I personally want nothing to do with this company. This is an essentially dead to me territory until there's a management change.
