News Details – Smallcapnetwork
Debt-Free & Cash-Rich SPYR Now Poised to "Pluck" Mobile Gaming Profits
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February 2, 2024

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PDT

Good Wednesday morning, friends and fellow traders. If it seems like you're receiving today's edition of the newsletter abnormally early, you're not imagining things - today's edition was indeed sent before the open rather than waiting until after the close. The fact that we altered our publishing schedule should underscore the importance we see in getting this particular newsletter out to you as soon as possible. Keep reading. You'll see why. You know, we're inundated on a near-daily basis to cover small, speculative penny stocks claiming tremendous growth prospects. Unfortunately, most of them simply don't cut the mustard. Today's new idea, however, not only has all of the makings of becoming a potential homerun, but this particular Company's balance sheet looks better than many small caps listed on the NASDAQ. In other words, this stock's underlying fundamentals and forward growth potential are surely worth exploring. First things first. To say mobile gaming is a huge growth opportunity would probably be the understatement of the decade. Ten years ago there was no such thing as mobile gaming, as smartphones were practically non-existent (BlackBerrys were it), and a decent tablet had yet to be unveiled. Now mobile gaming is a $30 billion industry, and has put some major names on the map, like Zynga (ZNGA) and Glu Mobile (GLUU). The industry hasn't even come close to reaching its full potential, however, for a couple of big reasons. One of them is the simple fact that many smartphone owners have yet to discover how addictively fun some of these games can be. The second reason is, despite the proliferation of smartphones we've seen thus far, there are more people in the world who haven't bought a smartphone yet than there are people who currently use one. The end result is staggering growth potential. Gaming market research outfit NewZoo recently updated its mobile gaming outlook, and now it's calling for the mobile gaming market to exceed $40 billion per year by 2017. And honestly, their upwardly-revised outlook may still underestimate the true potential of mobile gaming. Said another way , there's still plenty of opportunity for newcomers with great mobile games to carve out a nice-sized piece of this growing pie. Enter SPYR, Inc. (SPYR). You may be familiar with some of the websites SPYR operates without even realizing who owns and runs them. Some of these sites include CelebrityHQ.com, Crumb.com, and GuiltyTravel.com. They're all well-run and well-thought-out sites too. They're not the really cool and very time-sensitive part of the SPYR story right now, though. Rather, the part of the SPYR story that couldn't wait any longer is the recent news that its first mobile game has been published and is now available at the Google Play store, which means it's playable on nearly one billion actively-used devices. I have to assume it's soon going to be available for Apple iOS devices too, which adds another 900 million devices it can be played on. The game is called Plucky, and in simplest terms the aim of the game is to launch a puck around some obstacles and into a goal. Think of it as a combination of air hockey and shuffleboard. Or better yet, just go to the Google Play store and check it out for yourself. I did, and got hooked on it pretty quickly. The "so what?" is, it's one of those games I can see becoming as big of a deal as Farmville or Candy Crush Saga, which made Zynga and King Digital Entertainment (KING) household names for investors. For perspective, Candy Crush reportedly generates over a million bucks in revenue per DAY. The compelling part about all of this to you is, the game has only been on the radar for a couple of weeks, and only became available on Monday of this week. While SPYR nudged a little higher after the game was announced in mid-April (but before it became available two days ago), most of the market hasn't heard of it yet. Therefore the bulk of the bullish reaction to the game - via the stock - has yet to materialize. There's your edge... you know about the launch of Plucky a lot sooner than most investors do. As exciting as the launch of Plucky is, there's an even bigger show-stopper for current or soon-to-be SPYR investors. The company has $7 million in cash in the bank and another $6 million worth marketable securities on the books. Yes, this small cap company has access to $13 million worth of cash or near-cash it can use to market Plucky, develop other games, or make acquisitions. Oh, no debt either. I don't know the last time I've seen anything like it. In fact, I don't know if I've ever seen anything like it. Most of the time small caps, regardless of how marketable their product is, don't have enough cash to get sales momentum going. SPYR, conversely, has plenty of cash to get the Plucky ball rolling. Once the ball gets rolling fast enough, it can become self-sustaining, and self-funding, I think that $13 million should more than do the trick. I've heard chatter about Plucky maybe being able to drive $12 million in revenue its first year alone. With all of that being said, the part of the SPYR story I'm most stoked about is the chart. It's giving us a bunch of tell-tale signs a big move could be brewing. I could make this a long and complicated technical look at SPYR, but in the interest of brevity I'm going to keep this short and sweet. See how the stock just moved sideways in a range between $0.53 and $0.65 for the better part of March and April? We now have a pretty good idea this was just a consolidation (or buildup) phase necessary set up the next leg of a longer-term rally. Once SPYR cleared the prior peak around $0.70 a couple of weeks ago, that was the game-changer.... for the better. I'm honestly kind of surprised the stock didn't surge even more once the hurdle at $0.70 was cleared, but I'm not going to complain since it lets us in at a lower entry point. Either way, I think higher highs are coming. There's been a swell of bullish volume with the recent runup, in conjunction with the introduction and launch of the game. I've got a feeling, however, the volume we've seen to date is just the tip of the iceberg. Bottom line? After you play Plucky, you may also want to make a play on SPYR. On second thought, this one might get hot today. Maybe you'll want to trade SPYR first and then play the game.