Pitch:
– Microcap MVNO sells broadband to low-income HH through govt subsidized program.
– Attractive unit econs.
– Transitioning from losses to profits with increased scale.
– Growing at 130% and forecasted to deliver bottom-line profits this year.
– The CEO owns 40%.
Valuation:
– Trades at 2.5x EBITDA guidance for ’22.
– 8x PE on earnings of $0.75 for ’22 and $1.38 for ’23 results in targets of $7.5 and $14 per share.
Exp. gain: +120% to $7.5/share by the end of ’22
Full SURG write-up (free guest account required):
https://valueinvestorsclub.com/idea/SURGEPAYS_INC/0942144762