Borislav Tonev

Steampunk Wizards Inc (OTCMKTS:SPWZ) Enters the Spotlight Again

by Borislav Tonev February 10, 2016

Steampunk Wizards Inc (OTCMKTS:SPWZ, SPWZ message board) announced yesterday that it is on the brink of launching a new game. It's called Neon Gliders and it will be the fourth title to come out of the small app developer's headquarters in the last three months. Prior to it, SPWZ launched Whack a Geemie, Bungee Mummy: Challenges, and Bungee Mummy: Reborn. What are the odds of any of these applications reaching the success of, say, Rovio's Angry Birds?

Wall Street Report reckon that they're massive. In December, they produced a ludicrously long and sleep-inducing video in which a person who uses a pseudonym talks at some considerable length about the recent shifts in the gaming industry and how SPWZ can, in his opinion, be a major player one day. Then again, he would say that. He (whatever his real name is) pocketed $5 thousand to do so, and according to the fine print under the video, the total production budget (provided by a third party, of course) sits at $150 thousand.

The truth is, SPWZ is still a long way away from reaching the success of the big gaming companies. The Bungee Mummy franchise has indeed been on the market for some time and it has managed to amass quite a few downloads. Unfortunately, according to the latest 10-Q, people are not spending that much money on it. Here's what the figures looked like at the end of October:

  • cash: $72 thousand
  • current assets: $113 thousand
  • current liabilities: $233 thousand
  • quarterly revenues: $13 thousand
  • quarterly net loss: $260 thousand

The figures above don't look very nice, but we should point out that when they were recorded, some of SPWZ's more recent games were still not out and we should also note that in an industry as dynamic as the mobile gaming one, a single title could sometimes turn the tables around.

All in all, there might just be a glimmer of hope. That's what yesterday's stock performance shows as well. After the PR, SPWZ shot up and broke the negative trend it has been showing for the last few months. At the end of the day, the gains amounted to nearly 43% and the price stood at $0.40 per share.

So, people are ready to ignore the pump and put their money on the line in the hope of another Candy Crush/Angry Birds/Farmville type of success. But should you follow the heard?

That is for you to decide. Don't forget, however, that as we wrote some months ago, the 10.8 million shares that comprise the float were originally sold for less than $38 thousand. The people who took part in the offering might still be holding on to some stock and they might not be willing to wait for the next Candy Crush to come out of SPWZ's headquarters.

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