SPYR Inc (OTCMKTS:SPYR) is a micro-cap player that utilizes a diversified model: an emerging digital app play mixed with a restaurant. This is an interesting model, and it deserves a closer look. Recent headlines on the company suggest a lot of promise in the year ahead, so we felt it was a good time to turn a spotlight on the company’s plans and opportunities.
The first thing that strikes you with SPYR is its place in the red hot digital app space. Other stocks in the space, such as Skyworks Solutions Inc (NASDAQ:SWKS), ARM Holdings plc (ADR) (NASDAQ:ARMH), and NVIDIA Corporation (NASDAQ:NVDA) have seen a massive appreciation in share pricing. SPYR is in an interesting spot to potentially follow suit, provided the company can make good on some ambitious goals for 2017. But, before we get to that, let’s get more acquainted with this interesting company.
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 Joe’s, 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.”
SPYR, Inc recently put out an update on its plans and objectives for the year of 2017. From the looks of it, there are two main avenues of expansion, neither of which are focused on the restaurant side of the business.
The digital app segment is the growth engine.
The first avenue is expansion of the scope and scale for the flagship brand for this company, “Pocket Starships”. The company is looking to press this through three main agendas: eSports, moving the gameplay onto the Windows platform, and more aggressive partnering with web portals.
Of these, perhaps the Windows platform agenda is the most interesting. It takes some investment, but could open up a market consisting of a potential 350 million additional gamers. That said, the eSports potential is also quite powerful. Research firm SuperData reported an estimated total of $892.8 million of revenue in eSports for the year 2016. That figure is expected to grow sharply in coming years. In addition, the web portal direction is also very advantageous given that it represents potential expansion with no upfront cost.
The second main possibility is an expanded product offering beyond the Pocket Starships brand. In a note to that effect, management has suggested that “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.”
At this point, the stock is on fire, running 62% higher over the past month of action. That movement has come on a clear increase in overall attention by traders and investors as evidenced by a 200% jump in average trading volume in recent weeks relative to the stock’s longer term average.
Given the company’s plans, it’s no wonder. This is a stock to keep on your focus list for the time being.