SPYR, Inc (OTCMKTS:SPYR) is a combination business, featuring restaurant and mobile app operations. The stock has been powering up the chart for the past year as the company continues to successfully frame its narrative in the mobile gaming space despite relatively limited app sales. Overall revenues continue to grow at a very strong pace on a sequential basis, SPYR, Inc appears laden with cash and almost no debt, and has recently outlined some rather aggressive plans for qualitative expansion of its mobile gaming segment.
Recent action has seen 62% added to share values of the company over the past month of action. In addition, the listing has benefitted from a jump in recent trading volume to the tune of greater than 160% over what the stock has registered over the longer term. Since we last covered the name, the stock has moved 42.6% higher.
SPYR, Inc (OTCMKTS:SPYR) engages in the digital media and restaurant businesses primarily in the United States. The company engages in developing, publishing, co-publishing, and marketing mobile games and applications.
It also owns and operates American Diner theme restaurant under the Eat at Joe’s brand located in the Philadelphia International Airport in Philadelphia, Pennsylvania. The company was formerly known as Eat at Joes, Ltd. and changed its name to SPYR, Inc. in March 2015. SPYR, Inc. was incorporated in 1988 and is headquartered in Denver, Colorado.
According to the company’s materials, “SPYR, INC. is a holding company that through its wholly owned subsidiary SPYR APPS, LLC, is engaged in mobile application and game publishing and development. SPYR, INC. also owns and operates an “American Diner” theme restaurant located in the Philadelphia International Airport in Philadelphia, Pennsylvania called “Eat at Joe’s” through its other wholly-owned subsidiary, E.A.J.: PHL Airport Inc. The Company is currently exploring opportunities for additional acquisitions in these and other verticals, including mobile application and game development, to expand its holdings, to drive and increase revenue and to generate profits and build value for shareholders.”
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SPYR, Inc recently put out an update on its plans and objectives for the year of 2017. The flagship brand for this company is Pocket Starships, and a lot of low-hanging fruit is still out there for expansion of that brand.
The company already uses web portals as a key strategy, highlighting the advantageous nature of a revenue-sharing agreement structure – no debt, no cash down, just points out of the end market. But the company notes that there are plenty more portal deals to be had. “The unique ability to make the game available on all of these portals, as well as on mobile devices is only possible because of the cross-platform aspect of Pocket Starships.”
In addition, SPYR notes that further possibilities lie ahead with an expansion onto the Microsoft platform, and its 350 million potential users. “It is anticipated that before the end of the 2nd quarter, a Windows update will be added to Pocket Starships.”
Also, as a consequence of the rock solid balance sheet, the company is planning on introducing a dividend to return some of that cash to shareholders.
“SPYR plans on declaring a stock dividend to its existing shareholders on a date to be determined. In the near future, SPYR will divest itself from the restaurant business by issuing a stock dividend to our shareholders of record as of a specific record date. The restaurant division will become a separately traded public entity. SPYR then intends to file a Registration Statement with the Securities and Exchange Commission (SEC) to have the restaurant division trading under a separate ticker symbol as a separately trading public entity.”
SPYR, Inc also apparently plans on diversifying its gaming offerings, which is another way to use the extra cash. The Company will continue to seek out new publishing agreements for new game titles in various stages of development. “SPYR will be considering games in a diverse field of genres, with the goal of creating a portfolio of games appealing across multiple demographics, resulting in a regular and consistent revenue stream.”
That said, keep in mind that the majority of this company’s actual sales come from its restaurant business. And both segments were unprofitable as of its last 10-Q.
At this time, carrying a capital value in the market of $139M, SPYR, Inc has a significant war chest ($3.9M) of cash on the books, which is balanced by virtually no total current liabilities. SPYR is pulling in trailing 12-month revenues of $1.6M. In addition, the company is seeing 15% sequential quarterly growth as sales push higher. As more color becomes clear on the name, we will review the situation and update our take. For continuing coverage on shares of $SPYR stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!