SPYR Inc (OTCMKTS:SPYR) has been making a lot of news lately, with the launch of its new mobile game, Plucky. Some analysts even believe that the company is properly positioned for long-term growth. However, there is a huge downside to the stock, which many investors and analysts are missing.
Essentially a restaurant business, SPYR broke into the digital media industry with the acquisition of a number of websites. The websites were seen as potential revenue generators for the company, but unfortunately, the traffic on these websites is scarce. It is reported that all of the 9 websites combined are able to attract just about 2,000 visitors. This factor makes the websites worthless to the business. The company also has $1.5 million in revenues, but almost all of this revenue comes from its restaurant business.
Furthermore, the company seems to driving itself towards its doom. The recent break in the digital media industry demanded that additional staff be hired and a separate wing for the business to be established. However, these new executives receive their compensations mostly in company stock. Additionally, the company’s financial health reveals $12 million in cash and investments.
SPYR can still turn things around, if it is only able to make the right investments. At the moment, Plucky seems to be the only pro for the company. This needs to change; the company needs to cash in on its websites, which have been poorly managed in the past. Revamping these websites and encouraging regular posts just might do the trick. Additionally, the company needs to focus on selling adverts. Plucky is the ideal place to start with this and once it starts working on those websites, they can join the portfolio as well. SPYR would also need to keep in mind that after Plucky; more good things would be expected of the company. If it fails to bring more games to the market, it might just end up losing its only sources of revenue.
SPYR Inc (OTCMKTS:SPYR) closed at $0.5, after losing 12.34% on May 18. The company has 150.13 million shares being traded in the market, with a 52-week range of $0.10-$0.99.
