SURG - SurgePays: Too Cheap To Ignore For A High-Growth Telco Play

2024-02-05 09:00:00 ET

Summary

• SurgePays, Inc. serves underbanked and underserved communities with a focus on lower-income families.
• The company has low institutional ownership, but insiders own nearly 30% of the company's outstanding shares.
• SurgePays is well-positioned as a high-growth play supported by a profitable business model. However, its relatively low valuation suggests the market hasn't turned too optimistic.
• The company is entrenching further in the immigrant communities, bolstering its competitive edge. Its lack of a durable competitive moat put pressure on a valuation re-rating.
• I assessed that the risk/reward is still favorable for bullish investors looking to buy before the institutional investor base sees the mispriced opportunity.

SurgePays, Inc. ( SURG ) is one of those stocks that doesn't get wide coverage due to a relative lack of institutional interest. It positions itself as a "technology and telecom company ." The company's main business is to serve the "underbanked and underserved communities." As a result, it has distribution networks embedded in the immigrant communities and generally focuses on lower-income families. Despite posting record profitability in its most recently reported quarter , the company has relatively low institutional ownership....

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