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2 questions.

Discussion in 'Investing' started by Tom729, Sep 7, 2020.

  1. Tom729

    Tom729 New Member

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    Hello I am brand new to investing. Over the past six months, I bought about 6K in various companies (mainly tech companies) and gained 2K in profit up until last Thursday. In apple alone, I gained about 1K in profit. My portfolio needs more diversification. I am sorry if these questions seem oversimplified. Admittedly, I was not paying as close attention to the EPS or the P/E ratio as was necessary.

    1) I was wondering if people think it is a good idea to invest in companies with a negative EPS?

    2) I have been using forecasting websites like gov.capital.com to help guide me in making my investment decisions. I am a long term investor so I rarely do any selling. I left everything in my portfolio in tack since the crash of last week. I am wondering how other people feel about these sites?

    I ask this question because Livongo kinda comes immediately to mind. I bought several shares of Livongo for just over a $100.00 yet hold a forecast of about 3K in 5 years. However, I can see that the company has a negative EPS.

    Thanks. Any feedback would be appreciated.
     
    #1 Tom729, Sep 7, 2020
    Last edited: Sep 7, 2020
  2. StockJock-e

    StockJock-e Brew Master
    Staff Member

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    You came into the market at an interesting time.

    We have been in an amazing bull market for well over a decade, the trick is to simply buy what ever has been moving up the fastest and is the most loved by the investing community.

    Negative EPS will sink some companies, while others will go onto new highs every other week. It really depends on the reasons why EPS is negative and the future potential of the business.

    I do not know much about LVGO, but if you did your research and you like what you see for a long term hold, then keep doing what ever works.

    I would be cautious of overly optimistic price targets like $3000, they usually come from investment banks that already have large positions and want to attract buyers to a stock, usually so they can sell their position.
     
  3. A55

    A55 Active Member

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    upload_2020-9-7_13-24-26.jpeg
    Teladoc is paying $11.33 for each Livongo share and exchanging 0.592 shares of Teladoc for each share of Livongo, which amounts to a 58% to 42% split in terms of control.

    Livongo loses money. It is not profitable. That's why earnings per share are negative.

    The merger will create the largest company in that space. Look at the competition. Telemedicine is in infancy. Livongo product line of remote diagnostics will couple into telemedicine. As every other telemedicine company is really just a.video conference with a doctor.


    The Teledoc pricing hovers around $200. You will get a part of that. I can't predict what will happen in 5 years. More than likely......The 500 lb gorilla could crush or buy out existing competition. A new 100 lb gorilla could emerge to crush Teladoc. Technology could render Teladoc obsolete. Canada could invade USA. No predictions....$3,000 or otherwise, have any value.
     

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