SurgePays: High-Risk, High-Return Play With Surging Subscriber Numbers

  • Subscriber and revenue growth for their mobile broadband business continues at a torrid pace.
  • Margins are low still but gross margin is set to rise with an increasing installed base of subscribers and operational leverage is also kicking in.
  • The company isn’t bleeding much cash and refuses to dilute, a pending receivables finance would enable the company to grow even faster and achieve better margins on the tablets.
  • The short position has increased considerably but unless management is blatantly lying we struggle to see why. The CEO alone holds a third of the company’s shares.
  • As a high-risk, high-reward play it’s not something to bet the bank on, but if you can handle the volatility it could produce outsized returns.
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SurgePays: High-Risk, High-Return Play With Surging Subscriber Numbers