Why The Market Is Overlooking The Massive Opportunity Of Surge Holdings

Apr. 8, 2019 11:46 AM ET

Kurtis Hemmerling
Investment model designer, Quantitative screening, Historical backtesting

Summary
Surge Holdings could be worth over 50x today’s price in a few years if their products are well received.

I believe that the market doesn’t yet understand the opportunity which is why the stock is priced so low today.

I outline my thesis for growth of Surge Holdings along with the risks investors face along the way.

Surge Holdings has reported a couple of exciting new developments since I last wrote about it on Seeking Alpha two months ago. I feel that the upside potential for Surge Holdings is more than 50x the current price over the next few years. To read a detailed discussion of my bullish thesis of Surge Holdings, please see the article, Surge Holdings The Unknown Story of High Potential Growth.

For a very quick recap, this is what Surge Holdings is doing today:

Launched a nationwide cellular service which includes a free monthly plan that is paid for through advertisements. Surgephone.com
Ready to launch (any day now) a pre-paid Visa debit card that can upload checks with a click of a camera. It acts as a checking account for anyone having difficulty accessing the banking system such as foreign workers.
Surge has their own budget smartphone called the Volt 5XL.
And here are two exciting new updates for Surge Holdings since my last article:

February 28th, 2019 – Signed and inked a definitive agreement with AATAC for a potential roll-out to 40,000 stores in 2019. AATAC is a buying group with reach into 80,000+ stores such as 7-11 (OTCPK:SVNDF), Circle K, Shell, Chevron (CVX), Gulf, Texaco and more.
March 6th, 2019 – Surge Holdings filed an application to upgrade to the NASDAQ Capital Market.
It seems almost preposterous that I would be writing about a company which could be worth 50 – 100x more than today’s price and especially so since I do not own shares as of today. As for having ‘skin in the game’, I am trying to gain exposure to Surge in other ways such my involvement in researching the company for those interested in a private placement. I will disclose that when it is finalized. As for the former point on why I value the company so high – below is a review of how I came up with those big numbers.