Happy Friday everyone. What a day yesterday, eh? NASDAQ gets clobbered again. What's so amazing about that type of event lately - which by the way is fourth time in less than three months - is the breadth and the speed of the selloff.
In other words, it's enough to make anyone think these markets continue to trade on extremely shaky ground - as if the rug could be pulled in a New York minute. However, somehow they always find a way to come roaring back after the scare is over.
Speaking of scare, it's nice to see SPYR, Inc. (SPYR) settle a bit today. One day won't change the disastrous momentum of late, but it is a start. And, like we said yesterday, nothing has fundamentally changed with the company.
We got all different types of feedback in reply to yesterday's newsletter. Some said the company deserved it, and others thought otherwise. Go figure. That's what makes a market I suppose.
We did, however, get a very interesting perspective on SPYR this morning from one of our lead site contributors, Sara Cornell. A brilliant and funny lady who's been around small stocks a very long time, chimed in and provided her thoughts on Wednesday's meltdown in the stock.
Rather than try and re-spin her comments, I thought a re-print here was very deserving:
Is SPYR Stock a Victim of Bad Journalism?
SPYR Inc (OTC: SPYR) has taken a beating this week. Opening Monday at $.48/share, the stock closed Thursday at $.19/share, with abnormally high trading volume the past two days. And when I say abnormally high, I'm talking about 1.2 million share trade volume both days, compared to an average daily volume of about 250k shares. So what's up? Well, it's hard to say. There hasn't been anything technical or sector related that would trigger that kind of trading volume. The company hasn't released news this week, and there hasn't been any published analysis of note, but a deep dive on Google did turn up a blurb published just a week ago on July 21, 2017 by Finance News Daily:
"More notable recent SPYR Inc (OTCMKTS: SPYR) news were published by: Seekingalpha.com which released: "Beware Of SPYR Inc.: 90%+ Downside In This Heavily Promoted Stock" on May 07, 2015, also Seekingalpha.com with their article: "SPYR Inc: 100% Downside, Q3 Fundamentals And New Lawsuit Info Don't Lie" published on November 21, 2016, Seekingalpha.com published: "SPYR: Why This Promoted $89 Million Company Could Drop 70%+" on May 15, 2015. More interesting news about SPYR Inc (OTCMKTS:SPYR) were released by: Seekingalpha.com and their article: "SPYR Inc. - Decreasing Our Price Target To $0.00, The Cash Is Gone!" published on September 30, 2016 as well as Seekingalpha.com's news article titled: "SPYR Inc. - Strong Sell - 85% Downside - Connected To A Vast Network Of Stock ..." with publication date: August 03, 2016."
What's interesting to note about this is the dates that are referencing the zombie apocalypse of SPYR. The articles, all published on Seeking Alpha, go back to 2015, with the most recent article published 8 months ago in November, 2016. I would hardly call those "notable recent news" articles, and if the Finance News Daily writer were under my editorial jurisdiction I'd question her credentials as well as her ability to coherently pull together a paragraph. But my issue isn't so much a with farm league article, it's the screaming headlines "The Cash Is Gone!" and "Beware 90%+ Downside", which brings me to my personal beef with Seeking Alpha.
A company that I have familial relationship to is regularly a target of Seeking Alpha, with click bait headlines, doomsday scenario writing and, frankly, bad information. It soothes my soul a bit that many of the comments call out the writer for bad technicals, poor judgement, and occasional stupidity, but nonetheless, seeing a company you know and follow get shredded in an online publication is a bit like watching your teen get beat up by the schoolyard bully. You have to stand back, keep your mouth shut, and hope for the best. Knowing what I know and reading what I read oftentimes makes me wonder if some of the articles on Seeking Alpha are planted by competitors or disgruntled employees who have a little too much information, but not quite enough to see or understand the big picture.
Looking at the 2017 publishing history of SPYR on Seeking Alpha, the only news they covered was the annual report filing, the dividend shares announcement in April, and the SEC Quarterly Report filing in May. Nothing about the significant news regarding the divesture of Eat At Joe's (tm) or the licensing of Star Trek IP into Pocket Starships, or the acquisition of publishing deals with Home Makeover and Battlewack: Idle Lords... just saying...
I've been in and out of financial markets for more than two decades, so I'm no stranger to the fine line that is walked between marketing, journalism, and insider trading. The last person I want knocking on my door is an SEC investigator, or a libel attorney for that matter. But it makes me wonder just how much of an impact irresponsible publishing and misinformation have when it comes to small cap companies.
If I had to take a guess, I'd bet that someone close to or on the inside at SPYR is having some sort of financial tumult and dumped a huge block of stock, or that someone had a few too many mojitos at the weekend pool party and let loose some information about a deal gone sour. But until the company makes a statement about what is or isn't happening with their projects and business plan, it's only conjecture what has caused the selloff. And publishing articles with click bait headlines isn't going to help investors make informed decisions.