Teladoc Inc. (NYSE: TDOC) – Sell or Short Recommendation – $16.50 PT

December 28, 2015, concludes the 180-day lockup period on Teladoc Inc.

When the lockup period ends for TDOC, its pre-IPO shareholders, directors and executives will have the chance to sell their ~28 million shares.

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The potential for a sudden increase in stock available in the open market may cause a significant decrease in Teladoc shares, opening a short opportunity for aggressive investors.

Business Summary: The Telehealth platform offers 24/7 access to physicians and behavioral health professionals over the phone and online.

Teladoc is the first and largest telehealth platform in the United States. Founded in 2002, the company provides healthcare at any hour by phone, Internet, video and mobile devices.

Teladoc healthcare professionals are licensed in internal medicine, pediatrics, emergency medicine, family medicine, behavioral health and dermatology. These professionals must be credentialed every three years with NCQA-certified credentialing standards. They are primary care physicians, dermatologists, pediatricians, psychiatrists, psychologists, social workers and licensed therapists. Generally, most of these providers integrate telehealth or telemedicine into their primary medical practices.

The Teladoc platform has approximately 11 million unique members. The cost per visit is $40, and the average wait time to connect with a healthcare professional is about 10 minutes. Also, 92 percent of Teladoc members have their medical issue resolved through the service. Teladoc doctors can diagnose, recommend treatment and prescribe medication if necessary.

Teladoc offers these telehealth services on a subscription basis to large employers who then offer the service as an employee benefit. Approximately 90 percent of consultations take place over the phone and the service enjoys a 95 percent member satisfaction rate.

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