Good Hump Day all. Stocks continue to hang in there even though they haven't been able to build all that much on recent highs. Cause for concern? Maybe, but until the major averages make a definitive move in either direction, just about anything is possible just weeks before we enter into a new earnings season.
What's interesting is even with the major averages continuing to trade in new high territory, the Q3 earnings periods is expected to beat that of Q2 for the S&P 500, which by the way was a new all-time record in and of itself. Pretty amazing considering the slow economic growth environment Wall Street has become so accustomed to.
For those wondering where the strength came from last quarter, it's nothing different than where the strength in earnings is expected to continue - tech, financials and healthcare. This does come as a bit of a surprise for how the DOW has been acting, because it's actually the one major average that has led the markets for weeks now.
Go figure, because it's the NASDAQ and the S&P 500 that is far more weighted to these sectors than that of the DOW. When you look at how the DOW has been acting now for weeks, one would have though energy, industrials and basic materials would have been among those groups to pick it up on the earnings front, but that doesn't seem to be the case.
Make of it what you want, however, for those smaller stocks out there that rely so heavily on new fundamental developments, their reliance on the DOW, or any other major index for that matter, is pretty much non-existent. When it comes to small public companies, it's all about what the company in question is doing regardless of what the rest of the markets are doing.
With that in mind, we got another interesting development from one of our long time featured stocks today...
SPYR, Inc. (SPYR) has most definitely been trading much better in recent weeks following a pretty large scale trading debacle back in late July. The stock traded all the way down to $.10 cents per share at the end of July, before it found a bottom and since found its way back to the $.30 cent range.
Stocks go up and stocks go down, but for those who were willing to step into the big Summer selloff in SPYR, the bravery has yielded them about a 200% return since. Not bad when you consider there's not one blue chip that I can think of out there that has gone up 200% since its bottom this year. That's the nature of penny stocks though - feast or famine.
This morning, however, SPYR did announce an interesting and pretty compelling development. The Company has signed a publishing and development deal with Reset Studios for the development of at least two new idle tapper games to be published by SPYR, the first of which will feature characters and storylines from a well-known animated television series.
Pursuant to the publishing agreement with Reset Studios, SPYR is currently in negotiations for licenses with multiple televisions series' IP holders that would allow gamers to play as their favorite characters from major television series and battle increasingly difficult enemies to unlock new characters and rewards.
The idle tapper genre is a relatively new game genre in which players repeatedly perform simple actions, such as tapping their screens, to gain currency and progress in the game. The game continues even in the player's absence, resulting in the accumulation of rewards every time the player reopens the game. This feature makes idle tapper games among the most engaging genres, as players enjoy returning to the game to see their exponential progress. Players also have the option to make purchases in-game to speed up their progression.
Reset Studios develops games for all platforms, with a focus on the free-to-play market. Before becoming an independent company, the Reset team was responsible for the development and much of the success of Heroes of Newerth, a free-to-play multiplayer online battle arena (MOBA) game that launched in 2010 and attracted over 30 million users.
"Idle tapper games are becoming increasingly popular because they're so simple and easy for anyone to pick up and play," said Brad Bower, CEO of Reset Studios. "We're thrilled to work with SPYR to develop new titles and continue innovating in this growing genre. Incorporating characters and content from a celebrated animated television series into the games will make them even more fun and irresistible to play."
"We are very excited to announce that we have entered into this agreement with Reset Studios," said James R. Thompson, CEO and President of SPYR. "We're impressed by the team's deep understanding of how to engage users through compelling gameplay while simultaneously maximizing revenue. Moreover, the success of the idle tapper genre right now reinforces that these are exactly the type of games we want to be publishing as we continue to grow our mobile game portfolio."
SPYR anticipates announcing at least one of the IP deals before the end of this year.
That's good news for the mobile game and app developer who continues to work to position itself within the highly anticipated growth of eSports - a projected multi-billion dollar growth sector over the next several years.