Steampunk Wizards Inc (OTCMKTS:SPWZ) Steams Ahead

Pennyland is absolutely littered with companies that tried to make a name for themselves by entering the mobile gaming industry. Take 3D Pioneer Systems Inc (OTCMKTS:DPSM) as an example. Back in April 2014, they were saying that they are going to launch a casual game called Tangled Tut. What did they make of it?

It’s difficult to say because the company hasn’t filed any financial reports for more than a year and it has also been pretty quiet on the PR front. What we do know for sure is that DPSM‘s stock went through an absolutely devastating pump campaign. We also know that they no longer hold the intellectual property related to the Tangled Tut game. It’s now owned by Steampunk Wizards Inc (OTCMKTS:SPWZ) whose recently acquired Maltese subsidiary used it to create a similar-looking franchise called Bungee Mummy.

Unlike DPSM, SPWZ actually managed to launch not one, but two games under the name, but unfortunately, it’s still way too early to say for sure how well they will be received by the general public. The acquisition of the above-mentioned Maltese subsidiary was closed no more than ten days ago and it’s fair to say that its financial statement isn’t exactly perfect. In fact, once you convert the euros into dollars you’ll see that on March 31, Bungee Mummy’s creator had:

• $23 thousand in assets
• $53 thousand in liabilities
• NO revenue
• a $392 thousand net loss for the first five months of operations

Of course, the game is still relatively new and we should probably give it some time and see how people like it. SPWZ‘s management team reckon that it’s going to be a big hit. Last week, they launched the second title, Bungee Mummy: Challenges, for iOS and they talked at some considerable length about the concept behind the franchise.

Unfortunately, investors appear to be getting a bit ahead of themselves, however, and that’s worrying. On Friday, they pushed the ticker another 5% up and it closed the week with a price of $1.72 per share. This brought the market cap to a massive $46 million which, you have to agree, seems a bit disproportionate in light of the figures you see above.

In fact, with no actual results from the launch of the applications, hanging on at the current levels for long will be a tall order. Especially if certain people decide that they don’t want to stick around and wait for Bungee Mummy’s success or failure. As we mentioned in our previous article, the people in question purchased 10,080,000 shares for just $37,800 about a year ago, and if they decide to take advantage from SPWZ‘s current valuation, they will exert quite a lot of pressure on the ticker. As we mentioned already, the stock has yet to prove to us that it can handle it.

About twenty minutes after the start of this week’s trading, SPWZ is another 5% in the green.