" What lies behind us, what lies before us, are small matters compared to what lies within us" R.W. Emmerson
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Penetrating The Market
A company can have great products but all of that is moot unless you can advertise and distribute effectively. This is where I believe the big potential lies with Surge Holdings. The distribution network provides the technological backbone and distribution channel for current services and any future products they develop or acquire. The company cannot, and should not, rely on the success or failure of their pre-paid debit cards and cellphone service plans.
Think about the corner store market and how they do business today:
In December 2017, there were 154,958 convenience stores across the US as well as tens of thousands of corner stores and bodegas
It is estimated that 63% of convenience stores are single-store operators
They are more likely to get their products at a cash-and-carry outlet
This takes a lot of time and has other issues such as a lack of tracking and no formal liability coverage or insurance
And what about national companies wanting distribution through convenience stores? They send their sales team to the store, make a sale and then send trucks to deliver the goods across multiple stores… for a single product. Not an efficient way to do business that involves a lot of time and driving around.
Surge Holdings intends to change the corner market supply and distribution channel. What is that potential disruption and how does Surge break into this market and control the distribution chain? To answer that we need to talk about the SurgePays Portal.
Frank Zappa goes mad on the "Montana" live performance in Stockholm 1973
"THE WHO"
DSCR TWEET from CEO just now.
We are happy to announce that DSCR is Pink Current Information. Looking forward to upcoming announcements. to our shareholders on the company's progress on USA mining project. pic.twitter.com/qxFoPtc2nn
— Discovery Minerals (@DiscoverDSCR) February 14, 2019
Manufacturers Are Strategic Partners
Then there are the Surge partnerships with companies wanting to distribute their products such as Pastime Foods. Pastime Foods has provided an MOU commitment of $720 million in top-line sales ($1,500 per store across 40,000 stores) per year. I spoke with the President and CEO of Pastime Foods, Tim Riedel, to get a better understanding of what this Memorandum Of Understanding really means. This is what I took from that phone conversation.
Pastime Foods has a relationship with a convenience story buying group/trade organization. Pastime Foods would introduce Surge into this arrangement giving the potential for Surge to be placed in tens of thousands of locations. Why would Pastime be willing to do this? The reason is simple – these trade organizations need a minimum order per store to bring in vendors. By becoming co-sponsors with Surge, Pastime Foods can gain wide distribution while lowering their initial set-up costs.
Here is a hypothetical example. If you are rolling your product out across a proposed 40,000 store locations and if the minimum order is between $300-$500 per store, that can be an overwhelming start-up cost for a smaller sized company. But by having 2 or more firms band together when approaching the buying group, this will allow each company to split the initial set-up costs while gaining the same nationwide distribution.
But an MOU is not legally binding. 40,000 stores would be huge, but what if that plan falls through? MOU is like a letter of good intentions. Investors should watch for any potential announcement of a definitive signed agreement to replace the MOU. A binding contract would have infinitely more value than an MOU. And that agreement does not explicitly mean that those 40,000 stores are forced to place Surge products inside each location. It is my understanding that the buying group endorses and makes available through their own channel the Surge products and services. The next step is to see how many store owners order in Surge-branded and partner products.
Let’s assume that a definitive agreement gets signed and announced. Let’s further assume that 40,000 stores are rolled out in 2019. If the $1,500 in revenue per store is reached across 40,000 stores starting in 2020 – what sort of profit might this generate?
I will use a 2% gross profit margin
This will result in $14.4 million gross profit
The 9.55x multiplier results in a market cap of $137.5 million or 3.2x the current size
Again, keep a close eye for any potential announcement that the MOU has been replaced by a signed contract with the trade organization. Keep a close eye on how many stores sell Surge products. And finally, keep an eye on how the products and services are received.
https://seekingalpha.com/article/4238650-surge-holdings-unknown-story-high-potential-growth
$DSCR FULL Reporting.... https://www.otcmarkets.com/stock/DSCR/overview eom.
CEO Sean Folkson called in to SmallCapVoice.com, Inc. to discuss recent corporate developments. Topics included the 2019 Product of the Year award recently won by Nightfood ice cream in a survey of over 40,000 consumers, the recent Letter of Intent signed by subsidiary MJ Munchies to license its Half-Baked brand in the cannabis-infused edibles space, and the move this week of the Companies securities to the OTC Quote Board from the Pinks. https://www.otcmarkets.com/stock/NGTF/news/Sean-Folkson-CEO-of-Nightfood-Holdings-Inc-Discusses-Recent-Uplist-to-OTCQB-and-Other-Recent-Events-in-New-Exclusive-Aud?id=218186
AGREEMENT FOR SHAREHOLDER LOCK-UP AND ACQUISITION OF WARRANTS
THIS AGREEMENT FOR SHAREHOLDER LOCK-UP AND ACQUISITION OF WARRANTS (the “Agreement”) is dated as of February 4, 2019 between Sean Folkson (“Shareholder”) and Nightfood Holdings Inc., a Nevada corporation (“Company”).
WHEREAS, the Shareholder desires the opportunity to establish a larger equity position in the Company;
WHEREAS, the Company believes there is benefit to the Shareholder agreeing to lock up 100% of the shares of NGTF common stock (the “Shares”) held by the Shareholder for a period of twelve (12) months from the date of this agreement;
NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, Company and the Lender agree as follows:
1. Lock Up . The Shareholder and the Company have agreed that the Shareholder will not transfer, sell, or otherwise dispose of any shares of their NGTF stock for at least twelve (12) months from the date of this agreement. As of the date of this agreement, the Shareholder owns 16,753,568 shares of NGTF stock. The Shareholder has not disposed of any shares in any way since November of 2015.
2. Issuance of Warrants. In exchange for the agreement to lock up their Shares, Shareholder will receive warrants to acquire 400,000 shares of NGTF stock at a strike price of $.30, and with a term of twelve (12) months from the date of this agreement. The Warrants include a provision for cashless exercise, and will expire if not exercised within the twelve month term. Should the Company achieve
3. Governing Law . All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in New York County, New York, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any provisions of the documents contemplated herein, then the prevailing party in such action or proceeding shall be reimbursed by the party determined not to have prevailed for his or its attorney’s fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.
SurgePays Visa
Another life-enhancing product for the un-banked or under-banked is the SurgePays Visa card. This is an $11 billion industry.
SurgePays Visa Card
SurgePays Visa is a re-loadable Visa card. You load the card with money and use the Visa network even if you don’t have a bank account or a credit rating. Most people are familiar with re-loadable cards but this one comes with a twist.
The card acts more like a checking account than a traditional re-loadable card. For example, you can access your account through an app and even transfer funds to family or friends. You can also upload your paycheck with a simple click of your cellphone camera.
These services are taken for granted by most of us who have a bank account. But consider what life is like for the estimated 8.4 million who are unbanked in the USA. Or the 18.7 million under-banked, who have a bank account, but still seek services such as check cashing from outside the banking system.
No more waiting in long lines to cash your check at Walmart
Not having to pay the $4-$8 check cashing fee
Surge will earn revenue from this model in multiple ways including interchange portions of the merchant transaction fees, nominal monthly fees, ATM withdrawal fees, convenience fees and interest from monies on deposit. I don't know how much they will make but 1% seems like a reasonable fee by my 'back of the napkin' estimation method.
What sort of profit potential does this have? Let’s look at one scenario.
Assume 1 million cards are used as an alternative checking account
Assume a paycheck of $2000 every month
$2,000/month x 1 million = $2 billion in transaction value
1% of that could be retained through the various fees
$240 million per year in gross profit
If this scenario should play out, the 9.55x multiplier on gross profit would add $2.3 billion of market cap to the company. That is a staggering amount that is 50x the current share price. One million people using the cards in this fashion would add $25 per share to the price. And these products are not just for the unbanked or under-served. I can imagine the younger generation adopting these services since the fees are not that much different than a traditional bank.
What are the risks?
Surge’s profitability is directly tied to people using these cards more like a checking account and less like a gift card
If that happens, the features of this pre-paid Visa might be copied by other cards
The success of these cards depends on educating people about how to use the cards as an alternative checking account as well as distribution
Speaking of distribution, how does Surge intend to sell the products directly to the target demographic?
https://seekingalpha.com/article/4238650-surge-holdings-unknown-story-high-potential-growth
How Does Surge Make Money By Offering A Free Plan?
Is this a profitable venture? Let’s look at one hypothetical scenario.
Charities give out 1 million donated used smartphones to underprivileged teenagers and families across America
These phones are pre-loaded with a ‘forever free’ monthly smartphone plan
According to this Surge news release, $10 in revenue is generated off every subscriber
Assume a gross margin of 35–40% or $3.50-$4.00 in gross profit per sub every month
$42-$48 million in gross profit per year
The gross profit potential on just 1 million customers is ever greater than that. The Mulaah app continues to drive ads and revenue via the unlimited texting plan even after the 1 GB is used up.
If Surge Holdings can get 1 million free subscribers – what would this be worth in market cap?
Consider that the KBW Nasdaq Financial Technology Index has a median price-to-gross profit ratio 9.55
Assume Surge could retain $42 million in gross profit annually
$42 million x 9.55 = $401.1 million market cap
Current market cap is less than $50 million
What are the risks?
I downloaded the Mulaah app on my Xiaomi (XI) Mi A1 smartphone. The app changes the appearance of your home screen. Ads randomly pop up which are very small in the bottom of the screen and there are surveys you can take for extra points. Would I use this service? For a free cellular plan - absolutely! To knock $10 off my plan? I am not so sure.
Will consumers embrace this ad-supported network or will they gravitate toward another low-cost option?
Will the ad-supported cellular service be copied by a larger company with an existing customer base?
Will advertisers restrict where their ads are shown? There might be little conversion in advertising a new Tesla (NASDAQ:TSLA) car to someone using the free cellular plan. Of course, this also allows advertisers to target this specific demographic. Think Walmart (WMT) and McDonald's (MCD) vouchers?
https://seekingalpha.com/article/4238650-surge-holdings-unknown-story-high-potential-growth
$SURG According to this Surge news release, $10 in revenue is generated off every subscriber. Assume a gross margin of 35–40% or $3.50-$4.00 in gross profit per sub every month. $42-$48 million in gross profit per year
https://seekingalpha.com/article/4238650-surge-holdings-unknown-story-high-potential-growth
70,000 TONS X 10 GRAMS X $41=28 million in near term revenues$$$$$$
EOM means end of message.
EPIC RUN..eom
YEILD sign should be coming off in like NO TIME NOW. POSTED LINKS ON OTC JUST NOW
https://backend.otcmarkets.com/otcapi/company/financial-report/211792/content
https://backend.otcmarkets.com/otcapi/company/financial-report/211791/content
well if they are announcing 2 GEOs.. i would think we have a deal.. looking for press soon on clairtly..
SurgePays Portal SurgePays Portal is a nationwide e-commerce platform that allows the convenience store owner to order products directly from his computer or cell-phone. The owner can purchase and have delivered any of the traditional products on a curated inventory list formed by Surge Holdings as well as the various Surge-branded fin-tech products, such as SurgePays Visa and SurgePhone Wireless. I think of it as being like a blend of Amazon (AMZN), PayPal (PYPL) and Google (Goog) (GOOGL). But how does SurgePays Portal work its way into each store?
Surge Holdings has a few products and services which I have already discussed. I imagine that Surge Holdings already has strong connections in the wireless ‘top-off’ business since the CEO, Brian Cox, has already built and sold a wireless ‘top-off’ company. These connections may get him access into numerous corner markets for Surge smartphones and wireless plans. Once these products are in the store, the store operator now has the SurgePays Portal. Just as multiple computers connect to form the Internet, each convenience store that sells even one of Surge Holdings' products becomes a valuable link in the Surge distribution chain.
This is the big technology play that has the potential of keeping the company relevant beyond the success and lifespan of a couple of products and services. A single product can be replicated. A service can become a dying trend. If you focus on controlling the supply and distribution network, you can create an Amazon-like network for corner markets.
How will growth be rolled out? The first logical step would be for Brian Cox to leverage his existing contacts. I will place the value of that between 5,000 and 15,000 stores. The 40,000 store target will be discussed under the heading ‘Manufacturers and Strategic Partners’. If Surge can secure additional locations and work their way into an additional 10,000 stores, their network becomes increasingly valuable to big brand manufacturers. Large manufacturers will be eager to make distribution agreements with Surge in order to get nationwide exposure. Getting into those initial 20,000 or so locations is vital in order to gain enough critical mass to attract larger manufacturers.
But why will store owners be so willing and eager to adopt this new technology?
https://seekingalpha.com/article/4238650-surge-holdings-unknown-story-high-potential-growth?page=5
READ!!!!! what the CEO has on his TWITTER.. Brian Cox
@kbriancox
CEO - Surge (Ticker: SURG) 2019 NASDAQ Uplist - Telecom & Blockchain FinTech Software for the unbanked. Slamming the Gas Pedal of Life Through the Floorboard
VISA.... HUGE! HUGE! HUGE! ..imo SurgePays Reloadable Visa will be launched in early 2019. This card will perform the functions of a traditional credit card and also a checking account for the unbanked or credit challenged. The card will be distributed through the SurgePays network by having cards hanging on J-hooks (similar to gift cards). The customer will take the card to the counter and load cash on the card through SurgePays 2.0. The customer will then have the option to go online and fill out their information so they receive a card with their name on it. This personalized SurgePays Visa card will offer safety, security and convenience of using the card anywhere that accepts Visa and empower many customers to enter the digital age.
Customers will be able to access their accounts from the connected app to remit money to friends and relatives while avoiding costly fees. In addition, customers will also be able to take a picture of their paycheck and load the cash to their cards (eliminating costly check cashing fees). There are a number of revenue streams built into the SurgePays Visa including interchange portions of the merchant transaction fees, nominal monthly fees, ATM withdrawal fees, convenience fees and interest from monies on deposit.
LONG AND STRONG..eom
All Good.... $SURG HAS launched into a phase that is no turning back. That article was not paid for in shares , cash or ANYTHING. When freelance writers are picking up the beat of a company, it means the company is doing ALL THE RIGHT THINGS. IMHO SURG will uplist to NASDAQ this year.[/b]
Surge Holdings (SURG) is an almost unknown company with an interesting story to tell. They are rolling out their plan in 2019. If their plan is well received by consumers and corner markets – the upside potential over the next few years is very high. I estimate that the share price could be as high as $11 by 2021. I feel that the market does not yet understand this opportunity which is why the upside potential is so large.
Granted, this is a highly speculative stock where we are investing exclusively on future potential. But during 2019, we should see strong indications as to how successful Surge Holdings will be in executing their plan.
If you follow me on Seeking Alpha, you know me to be a dispassionate and analytical model designer. I create multi-factor ‘smart-beta’ models for family offices in addition to working as a part-time research consultant for a global quantitative asset management firm. What is it about the Surge Holdings story that has me thinking the upside potential is so big?
https://seekingalpha.com/article/4238650-surge-holdings-unknown-story-high-potential-growth
Imo we are current again very very shortly and then things crank up eom
$SURG
I understand the company is looking to build revenues. If I am not wrong convenience stores move a lot of cheesy puffs..imho the 3 products are a launch package with the major distributor. Big week ahead for Surge Holdings. BOD meeting today should produce some very nice forward moving events.
$FLIPERS. .EOM
imho we should see the Yield sign off by Tuesday next week and IMHO some GREAT press following.
Brian Cox - Visited a c-store snacks manufacturing plant today.
Hopefully sooner than later to be great products to sell through the SurgePays 2.0 Portal nationwide!
Pork Rinds - Cheesy Poofs - Cracklins - Popcorn
Visited a c-store snacks manufacturing plant today.
— Brian Cox (@kbriancox) January 30, 2019
Hopefully sooner than later to be great products to sell through the SurgePays 2.0 Portal nationwide!
Pork Rinds - Cheesy Poofs - Cracklins - Popcorn $SURG pic.twitter.com/IcANnGJ0ub
Mr. Smith continues, “We will mine this resource with state of the art techniques and equipment creating new opportunities for further production. The rise in gold prices to over $1250 per ounce only enhances this operation. DSCR will benefit from the existing mill facility built approximately 10 years ago, which will allow DSCR to focus capital on increasing revenue generating operations. We are on target to complete our Mining Plan by the end of April and to be generating significant revenues in 2019. We look forward to reporting the findings of our geology and survey program outlining a more comprehensive Mining Plan in the near future. As always I would like to thank our Shareholders for their continued support as we grow Discovery Minerals.”
The initial mining target is an extension of the Oro Fino Vein with approximately 70,000 tons of ore at 10 g per ton Gold plus 5 ozs per ton of Silver, that is visible in places on the surface. This is in the supergene zone with potentially high grades of Gold and Silver. We also expect to find enriched cross structures with higher grades of gold bearing ore at these intersections. This mining program of the first 100 feet of depth will commence later in 2019 and will take a year or more to conclude. While this operation is progressing we expect to expose further ore tonnages to expand operations. Current Gold pricing is approximately $41.19 per gram and Silver is approximately $15.42 per ounce. To be clear regarding the potential of the War Eagle Mountain Project this is only the beginning of the Company’s planned operations. Oro Fino is one of three vein structures that has shafts to 1250 feet deep and can be traced for 2 miles. The other two structures being Central and Poorman.
CEO sending out tweets again ,,,, ALL VERY VERY GOOD.
Big $SURG board meeting this coming Monday. Should be an eventful week as we continue to implement our rollout and discuss strategic acquisitions. ⤴️🎉
— Brian Cox (@kbriancox) January 30, 2019
Keep an eye out - as always, will be sending updates....some significantly important to the plan and my stated goals for 2019. pic.twitter.com/anydmpHcn2
$SURG looking for a nice move UP very very shortly..eom
War Eagle Geology
The War Eagle Mountain Project, situated 3 km southeast of Integra’s 100% owned Florida Mountain Deposit and 9 km east of the Company’s DeLamar Deposit, is located in the Owyhee Mountains near the east margin of the mid-Miocene Columbia River–Steens flood basalt province and the western margin of the Snake River Plain. The Owyhee Mountains are host to a major mid-Miocene eruptive center, generally composed of mid-Miocene age basalt flows and younger, rhyolitic flows, domes and tuffs, developed on an eroded surface of Late Cretaceous age granitic rocks.
Two styles of low sulphidation epithermal gold-silver mineralization have been recognized in this region; relatively continuous, north-south and northwest-southeast striking quartz-filled fissure veins that were the focus of late 19th and early 20th century underground high-grade gold-silver mining, and broader, bulk-mineable low-grade gold-silver zones of closely-spaced quartz veinlets and quartz cemented hydrothermal breccia veinlets, primarily bulk mined in open pits.
The local geology and ore mineralogy found within the low sulphidation epithermal veins on War Eagle Mountain are similar to the regimes found at DeLamar and Florida Mountain to the west. The key difference is the host rock. Historically mined gold and silver in high grade veins at War Eagle was predominately mined and hosted by late Cretaceous age granitic rock. It should be noted that historically, the veins of War Eagle Mountain were of far higher grade compared to any other mining operations in the district, including DeLamar and Florida Mountain. Past production on these high-grade vein systems has outlined strike lengths in excess of 1 km and depth extents of up to 750 meters or more.
CEO tweet
From the desk of Russell Smith:
— Discovery Minerals (@DiscoverDSCR) January 29, 2019
We are pleased to announce that Underill has been engaged for a independent geology report to review the existing geology report , as well as to review existing geology and assist with the mining plan. We are moving things forward.
Tomorrow even better. .eom