08-10-2022, 02:33 AM
I looked into MED a couple of days ago, due to everyone here buying.
I decided to not buy right now.
Is it cheap? Yes, definitely. The revenue growth is certainly there, but looks like the EPS growth is not there anymore. And that is very worrisome. They may have benefitted greatly from the covid lockdowns but that story is over. Also the same old story (as with many profitable growth companies) where a ton of money is pushed into share repurchases but it doesn't really lower the amount of outstanding shares.
But the main issue for me? The business model. Some sort of a "get thin and start a good life" mentorship program? I just feel that is way too 90's. The time of door to door salesmen and Tupperware parties is over.
I still love the revenue growth coupled with cheap valuation and a good dividend. So I'll keep my eyes on this.
I decided to not buy right now.
Is it cheap? Yes, definitely. The revenue growth is certainly there, but looks like the EPS growth is not there anymore. And that is very worrisome. They may have benefitted greatly from the covid lockdowns but that story is over. Also the same old story (as with many profitable growth companies) where a ton of money is pushed into share repurchases but it doesn't really lower the amount of outstanding shares.
But the main issue for me? The business model. Some sort of a "get thin and start a good life" mentorship program? I just feel that is way too 90's. The time of door to door salesmen and Tupperware parties is over.
I still love the revenue growth coupled with cheap valuation and a good dividend. So I'll keep my eyes on this.