2 PORTFOLIO ADDITIONS (10/31)

[LINK TO RECENT UPDATE: "DOUBLING DOWN ALERT: APPH, RGTI"]

As the market regains its footing and pushes on to higher highs, we're here to inform readers about a couple of additions to our general portfolio. This issue will cover our previous flash alert for Inseego (INSG) and our newest addition to the portfolio, Supernova Partners Acquisition Company II (SNII), our first SPAC.

INSEEGO (INSG)

We'll start with the former: Inseego, ticker symbol INSG. Inseego is a huge player in both 5G and IoT—or, the internet of things. Both 5G and IoT play major roles in everyone's lives, whether it be the use of our mobile devices or the transfer of medical data from an ambulance to a hospital. The company looks to provide people and businesses all over the world with wireless solutions and improvements in the form of reliable mobile connections, quick data transfers for businesses, and even assistance in mass data collection used to provide infrastructural solutions. They're also responsible for prior iterations of 5G; i.e. 4G, 3G, and even 2G, which was created back in the 1990s. Inseego has obviously been around for quite some time, and we expect them to be a player in the industry for the foreseeable future. They have great ideas and are dedicated to improving the older iterations of their technology and using these improvements to create better and more affordable solutions. A great example of this is Inseego's MiFi, a mobile Wi-Fi hotspot that utilizes a cellular network to provide internet to other connected devices. This device was introduced in 2009 and is still being improved upon in the year 2021.

On October 26th, 2021, the company revealed that they'll be heading overseas to provide Australia with wireless solutions. Due to the high cost of wired networks, Telstra network—the largest mobile network company based in Australia—has partnered with Inseego to help extend and improve their existing wireless network to underperforming rural and regional areas. This helps put their credibility into perspective; even companies far across the sea are reaching out for their assistance in search of affordable and reliable network solutions. We hope to see more collaborations like this in the future, and due to the nature of the internet and the societal need for quick and reliable connections, we're sure we will.

Inseego's second-quarter earnings report took place on August 4th, 2021 with reported net revenue of $65.7 million—up 14.1% since the previous quarter—and a GAAP net loss of $13.9 million. Additionally, the company's 5G revenue alone was up 182% year-over-year, with their cloud software revenue being up 49% year-over-year, and their subscriptions revenue being up 139% year-over-year. Their numbers indicate decent performance and display their ability to scale out, which is further demonstrated by their reported 5G expansion among Fortune 1000 companies. With all this information, we believe Inseego's current price at around $6.00 is more than worth a purchase. We look forward to the company's earnings taking place on November 3rd, 2021, and we'll likely be holding this stock for quite some time.

SUPERNOVA PARTNERS ACQUISITION COMPANY II (SNII) | RIGETTI

The next asset we'll be talking about is Supernova Partners Acquisition Company II, currently trading under the ticker symbol SNII. Due to this being our first SPAC purchase, we suggest heading to our "FAQ and Getting Started" tab and reading the "What is a SPAC?" section, but we'll do a quick reiteration here. SPACs are "special purpose acquisition companies," and are oftentimes referred to as blank check companies. These companies are shell corporations that look to merge with established businesses to a) provide them with capital, and b) grant them a spot on the market without having to go through the IPO process.

SPACs also usually come with an interesting unit conversion rate if you get in early enough—which in this case we didn't; for every one unit/stock of an acquisition company you purchase, sometime after the initial listing (and after the merger), holders of these units/stock can contact their brokerage to gain warrants. For example, if you were to purchase a SPAC that plans to merge with a company offering a 3/4 conversion rate on units, on a date announced by the company, you would receive 3/4 of a warrant for every unit you'd purchased at the company's listed warrant strike price. They're very similar to options in this way, as you're allowed to execute those warrants and gain shares of the company at the warrant's listed conversion rate and strike price. As we said, warrants don't apply in this case, but it's good information to remember for future SPACs. If you're unsure about anything, feel free to contact your brokerage and ask them about their system.

Now it's time to talk about the company that Supernova will be merging with: Rigetti Computing, our first quantum computing play. On October 6th, Supernova and Rigetti came to a definitive agreement to merge with one another. Rigetti has been a leading company in quantum computing for nearly a decade now, and their findings have finally led to their launch of the world's first multi-chip quantum processor, which is poised to outperform any advanced processor available today. This processor could improve technological growth exponentially, allowing computers to perform a variety of tasks at a significantly increased rate. The company has already put its tech to the test, having created a small-scale quantum-based cloud service, and even creating a fabrication facility for quantum computing hardware. This fabrication facility and its ability to produce high-quality designs speak to Rigetti's ability to scale their processors, providing a fix for one of quantum computing's number one issues—scalability. These accolades alone are highly impressive for a quantum computing startup rivaling both IBM and Google and we're very excited to see their progress. This company is sure to be one we hold for a long time to come.