SPYR Inc (OTCMKTS:SPYR) Resurfaces Above $0.60
There are many people who seem to like SPYR Inc (OTCMKTS:SPYR). The pumpers, for example, have been pretty excited about the company for quite a while. More than seventy emails have hit our inbox since the beginning of April and outfits like Stock Market Media Group are regularly putting out articles about the SPYR‘s enormous potential.
Reading through the disclaimers before jumping in on the hype train, however, is a good call and once you do, you’ll see that the pumpers are happy about the company because they’ve been paid to feel that way. The aforementioned Stock Market Media Group have received 250 thousand restricted SPYR shares and they also get a $5 thousand monthly fee directly from the company. The newsletters, on the other hand, make most of their money from third parties. The said third parties paid Bull Trends and Small Cap Leader a total of $18,750 and as a result, we received a couple of emails after the end of Monday’s session saying that SPYR “could be the next mobile gaming app success story”.
So, on the one hand, there’s no shortage of hype, but if you take a closer look, you’ll notice that not everyone is convinced. Some people who prefer to use nicknames, for example, wrote not one, not two, but three articles on SPYR and they all seem to be sure that the stock will crumble to the ground. They raise numerous questions around the company’s future and also tell us that the promoters are going to kick the stock into oblivion. It’s up to you to decide whether you’ll trust the people with the interesting nicknames, but make sure you bear in mind that when they were writing their articles, they had short positions open in SPYR.
All in all, there have been plenty of parties with different agendas over the last few months and they’ve all been trying hard to push the stock in the direction that suits them best. The problem is, because of all the hype on the one side, and all the negativity on the other, regular investors can’t be sure whether SPYR is a good investment or not.
As a result, the ticker’s performance is not what you’d call consistent. SPYR spiked last month and on May 1, it managed to reach a 52-week high of almost $1 per share. Then, however, it lost its footing and last week, it was barely hanging on to $0.50. Thanks to a press release from yesterday, it did manage to reach almost $0.65 again, but it’s fair to say that nobody can tell where it’s heading next.
There are some other issues as well. As you probably know, the company recently expanded its business plan and it’s now working in the digital publishing industry in addition to operating its restaurants. Quite a lot of news has come out of SPYR‘s headquarters in the recent months. A couple of weeks ago, for example, the company’s mobile app division released its second game in record time and yesterday, the management team announced that Franklin Networks, SPYR‘s newest subsidiary, has been ranked among the Top 250 digital publishing networks in the US.
Despite all the good news, the latest 10-Q still leaves you with mixed feelings. Indeed, unlike other penny stock companies, SPYR seems to have quite a lot of cash and it’s not buried under tonnes of debt. The losses are still pretty humongous, though, and they could soon put the relatively decent balance sheet under pressure. Of course, you might be feeling optimistic about the future and you might reckon that one day, the problems will be sorted.
Make sure that you consider one thing before jumping in, though. SPYR is pumped at the moment, and short sellers love pumped penny stocks. The ticker has already proved that having pumpers and short sellers on the same place, at the same time, is a volatile combination.
