News Details – Smallcapnetwork
SPYR, Inc. (SPYR) Continues Mobile Gaming Growth Path
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February 2, 2024

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PDT

Happy Monday morning folks. It's a new month of trading and things are already heating up like a good thing. Just a few minutes ago, SPYR, Inc. (SPYR) issued PR announcing the addition of "Home Makeover 4" to their growing arsenal of popular mobile games. The casual hidden object game, Home Makeover 4, will be co-published with Tamalaki on iOS devices and is expected to be launched within the next 4-8 weeks. Home Makeover 4 is the newest game in the successful Home Makeover hidden object game series for mobile devices. In the game players are challenged to search scenes for hidden objects, all with the ultimate goal of helping the main character, Emma, renovate her friend's grand European mansion. Home Makeover 4 is already available on Android devices, where it has an average user rating of 4.3 stars. The previous three Home Makeover games have had 5,900,000 installs on Android and Amazon devices. James R. Thompson, SPYR's CEO and President states, "Home Makeover 4 is a great casual game aimed at a primarily female audience. It has a proven track record on Android and we are excited to bring it to Apple's audience. With the addition of Home Makeover 4 to our publishing portfolio, SPYR is expanding its audience and following through with its strategy to publish a diverse series of games, all with the aim of creating multiple revenue streams within the electronic games space." This follows the filing of SPYR's 10K just Friday, which clearly spelled out the Company's focus of continuing to grow its digital media division. The Company's 10K also revealed roughly 2200% revenue growth from 2015 to 2016, as SPYR Management works diligently to shift the Company's focus solely over to the extremely hot growth sector of mobile gaming, and specifically eSports, which video game information outfit Newzoo estimates will exceed $1B by 2019. Although revenue was still light, it's completely normal for the space, as companies typically work under what's been coined as a "freemium" model, whereby the focus is on rapidly growing user engagement. As a matter of fact, I pulled this comment line from Friday's 10K: "Management's plan for the next 12 months is to build upon this foundation and focus our efforts on marketing and optimizing user acquisition and retention. We will also continue to provide the monthly advances to Spectacle for further development, enhancement and maintenance of the game as needed to meet the needs of the users and maximize revenue into the future." Additionally, for those who may have missed it, SPYR Management also recently announced its intent to divest itself from its restaurant division by spinning off the business, and issuing a stock dividend to its shareholders of record as of a specific record date. In the coming weeks, SPYR's Board of Directors will carry out the necessary corporate and regulatory requirements to implement the spin-off and stock dividend, including informing shareholders of the exact procedure to be followed in order to receive their stock dividend. After SPYR concludes the spin-off of the restaurant division, SPYR will file a registration statement with the Securities and Exchange Commission qualifying it as a separate publicly traded entity with a separate trading symbol. For those interested, which we suggest everyone should be, the record date to receive the stock dividend will be May 19, 2017, and the Company will be issuing a 1 for 1 stock dividend to those who hold shares of SPYR on May 19, 2017. For example, if a shareholder owns 50,000 shares of SPYR on May 19, 2017, the shareholder will receive 50,000 shares in the newly spun-off publicly trading company. That shareholder will then own his/her original 50,000 shares of SPYR and 50,000 shares of the newly spun-off publicly traded company. It's our own very strong opinion if investors do their own diligence on SPYR, they should come to find SPYR is somewhat quietly building what very well may end up being an extremely attractive mobile gaming company, one that potentially could end up making some serious hay in the eSports space in the years ahead. The Company is well-capitalized, has no toxic debt to speak of (very rare for a penny stock), and continues to make what we believe to be all of the right moves, especially with its recent addition of Farshid Almassizadeh, who has joined SPYR as its Chief Strategic Advisor. Almassizadeh is a 25-year veteran of the computer, video, and mobile gaming industries, and more importantly a former senior executive at gaming giant Electronic Arts (EA). Just think about that for a second and come to your own conclusion. The key to any penny stock's potential is to pay close attention to what the Company is actually doing, not what someone outside of the Company in question is telling you. When we take a step back and look closely at all of SPYR's recent announcements, we see a number of very exciting developments, which the least of them also includes a potential short squeeze on the horizon - the Company recently well-documented a very large potential short position in the stock to the tune of roughly 28M shares. The daily chart below shows you just what SPYR stock is capable of doing when all of the stars align, and this doesn't even included what the Company potentially has up its sleeve over the next several months. It sure looks like the stock is ready to make another nice move following the pullback over the last several days. Now that it has settled somewhat, if it's going to make a big move, it should do it soon. The bottom line is if SPYR can continue to make announcements like the one they made today, our technical analysis of the stock on a long-term basis suggests a potential move to $1.20 before it could run into significant resistance again. That would equate to about an 84% gain from where the stock closed on Friday. That's a risk we think is worth taking, and although one should only ever allocate to a small cap idea what one is completely willing to risk, SPYR is definitely one speculative penny stock we're willing to bet on for the future.