SurgePays Inc (SURG)

[Televet]

SurgePays: High-Risk, High-Return Play With Surging Subscriber Numbers
Aug. 15, 2022 12:00 PM ET

https://seekingalpha.com/article/4534418-surgepays-a-high-risk-high-return-play-with-surging-subscriber-numbers?mailingid=28736202&messageid=2800&serial=28736202.596&source=email_2800&utm_campaign=rta-stock-article&utm_medium=email&utm_source=seeking_alpha&utm_term=28736202.596

Conclusion
The company has a lot going for it. It has hardly begun to scratch a huge total addressable market ("TAM"), providing an unbeatable proposition (free internet) to ACP-qualified subscribers. Fast growth can continue for years.

The subscriber growth is limited by the number of tablets they can pre-finance, but a pending finance deal on the government ACP receivables should lessen this limit (and improve the margins on the tablets).

While margins are still low, with an increasing base of subscribers for their mobile broadband business these will set to improve and the company will start to produce cash.

The shares are pretty cheap, held down by a seemingly increasing short position, management owns well over a third of the company and they aren't selling shares.

The risk is in the continuation of the ACP but given the digital divide and the importance of the Internet for access to jobs, education, and services like healthcare, we're not overly worried about that.