Meetme, Inc. (NASDAQ:MEET)

CAPS Rating: 1 out of 5


Player Avatar TSIF (99.96) Submitted: 8/13/2011 2:49:32 PM : Outperform Start Price: $5.09 MEET Score: -82.91

Quepasa Corp gets some serious mood swings and I've played it up and down. I find playing it up if I can anticipate a bottom is safer. While I don't think much of Quepasa from it's financial metrics or it's "story" of being the Latin Facebook, it's definitely a high beta stock favored by speculators who just read the "growth story". I really don't think Quepasa is sticky enough for growth. The games they are adding may help. Their recognition by Facebook may help. The investment thesis so far has been that it's the only publically traded social media site, so get in early. With LinkedIn and others hitting the market, the story isn't as attractive as it once was. Each month they give their membership increases and game downloads and people get impressed. I think the company has a chance, but the valuation is WAY to high to be betting on this one. Even after it's dive to $5 it's $85 Million market cap is hugely swollen at this growth rate. Book value is $0.82 and P/B is 7.4 while revenue dropped QoQ and is half of expenses. Despite a share issue last quarter, the float is still relatively small. Quepas was added to the Russell last month giving it a little more "respect"/coverage.

Quepasa did score a win with the purchase of myYearbook, which appears to be a profitable company that should blend in well.

So here's a negative pitch on an upthumb...confused.....technical/social economical/speculation equity practicing....not a long term hold, but it could double from here or it could half....I suspect right now it has a better chance of a double, but that's a high beta bet with some speculation that speculators are going to continue to play this one......

Member Avatar pugnaciously (31.10) Submitted: 11/16/2011 7:39:34 AM
Recs: 0

Interesting pitch. I'm learning from it, so thanks. I don't know enough to say yeah or nay, but this bears further research at least.

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