Image Source: Sugrepays.com

SurgePays (SURG) is finding itself in a healthy telecommunications environment to grow, reach breakeven and reap its financial and telecom growth spurred on by its focus on the low end of the market.

SURG was the creation of True wireless and KSIX in 2018 and provides government subsidized wireless in 5 states. Given that they are growing in excess of 120 percent thanks to their Surge branded solutions, growth and profitability are clearly on track and, as many know, the move to profitability should not only mean the move to a positive line in their balance sheet but also shall lead to share appreciation as their 2x debt to equity level improves as well.

Unlike most players in the current market trying to sell products at higher prices and with reduced growth potential, SurgePhones; AAtac rollouts in Circle K, Shell, and Chevron; and Prepaid debit cards are all things that generate demand. And are targeted to clients seeking out their solutions not being sold higher cost solutions that no one needs. Not only is their demand but here is a company with increased demand in a market built for them. Not only this but they already have taken the risk and from now on get to capitalize on growth.

If I had to target a price, I would look for a price of 15 dollars as it meets its profitability targets on phenomenal growth. In that estimate I am looking for the company to post $1 eps and the warrants up to $10 from their current $1 range.

Adding to their growth prospects the added Surge pay for retailers allowing for business processing. As they continue to flex their muscle from their merger they should be able to continue the growth for the foreseeable future. Given the positives they should easily meet their subscriber growth target of 300,000 for this year, up from 200,000 previously and beating current guidance.

The negatives about buying any stock right now are hard to surmount. This is a small company. It is doing its best partnering up with larger companies with success. The company is not profitable but it should be. The company can run into hiccups but currently I don’t see any and most of the gamble is over from the merger. Where as there are negatives as with most stocks I see this as a reason to buy now while the stock is low. Even so people are noticing it as the stock has been on an upward trend and is ready to run on more positive news.
 

Related Articles:
SurgePays Will Surge Ahead As Subscribers Flock To The Company
SurgePays Passes 150,000 Mobile Broadband Subscribers
What The Market Is Missing About Surge Holdings

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