Cathie Wood, CEO of Arc Investment, bought an additional $20 million worth of shares in telemedicine company “Teladoc.” Teladoc’s stock price fell 40% in a day, but he rather started to buy a low point, saying, “Investors are not aware of the true value.”
CNBC reported on the 2nd that Arc Investment purchased an additional 386,712 shares of Teladoc through the “Arc Innovation Exchange Traded Fund” on the 28th. On this day, Teladoc’s stock price plunged 40.15% from the previous day to $33.51.
According to CNBC, Arc Investment bought about 610,000 shares of Teladoc from four funds, including Arc Innovation ETF. The total purchase amount is estimated to be about $20.4 million based on the closing price of the day.
Teladoc’s stock price plunged as it announced its sluggish first-quarter earnings. Sales rose 25 percent year-on-year to $565.4 million in the first quarter, but fell below the stock market’s estimate of $569 million. It also lowered its sales forecast for this year from $2.65 billion to $2.4 billion to $2.5 billion.
This is because the company’s net profit was expected to surge as telemedicine increased due to the COVID-19 crisis, but its net profit decreased due to intensifying competition. Stock prices of other telemedicine companies also plunged at the same time.However, CEO Wood claimed that Teladoc was undervalued, saying, “Investors are missing shares equivalent to Amazon.”
In an interview with CNBC on the 29th, he said, “Although we had to lower our forecasts due to a drop in short-term sales, Teladoc could become a ‘category killer’ in the healthcare sector for the next 5 to 10 years.” Taking Teladoc’s recent collaboration with Northwell Health, the largest medical institution in New York, as an example, Teladoc’s B2B business will grow further in the future.Arc Investment is the largest shareholder with a 12.14% stake in Teladoc.
As Teladoc stock prices plunge, the return on funds is also on the decline. Arc Innovation ETF closed at $47.13 on the 29th, down 3.56%. Compared to February 12th of last year (156.58 dollars), it plunged 69.90%.
Among them, there is a company that customizes a solution that combines artificial intelligence of Korean infomining (CEO : Jae-yong Lee). The company is already planning to supply watch-type devices and diagnostic management solutions by signing a solution contract at Yonsei University Severance Hospital, a university hospital of Korea’s leading medical institution. In addition, it has signed an NDA with ITBook, a Japanese healthcare company, and is conducting initial sample test transactions. Of course, looking at start-up venture companies making transactions and signing contracts to do business beyond their interest in Korea, Japan, and the United States, they clearly know that their advanced technology and development capabilities are great. In addition, the currently developed smartwatch-type devices are also devoted to medical device licensing, and primary investment was received in this process.Although it is a domestic investment in Korea, investors seem to have great interest and high expectations for their development.
▲ INFOMINING CO., LTD.
▲ CEO : Jae-yong Lee
▲ http://infomining.co.kr
▲ worldconsult@infomining.co.kr
▲ +82-70-4914-2970
SAM KIM
ASIA JOURNAL
