Charles D

Company Overview

Quepasa Corporation is a leading Latino social media company. Its principal web platform –Quepasa.com – is a 9 million member social network, targeting Latinos in the US, Spanish- and Portuguese-speaking countries. The site offers over 4,000 user-generated and sponsored communities, which have attracted recognizable Latinos such as famed plastic surgeon Dr. Rey, whose television show, “Dr. 90210,” is viewed in over 180 countries. Having developed a viral social networking platform over the past 18 months, the Company is now entering the second phase of its strategy, namely monetization of its growing user base via two major initiatives:
1. Social Applications: the Company is in the process of introducing culturally relevant social gaming applications, monetized through paid subscriptions in exchange for enhanced functionality, and through paid micro transactions, such as virtual gifts. The company expects to roll out a broad offering of applications, beginning with Papacito – a dating app – which launched in October 2009.
2. Distributed Social Media (DSM): the Company is finalizing development of its DSM contest platform and is currently marketing the program to companies and agencies seeking to spread their brand messages virally throughout the entire web. Specifically, the QuepasaDSM contest platform, hosted on Quepasa.com, creates incentives (via prizes) for users to share certain types of content throughout the web, including sites such as Twitter and Facebook. At the same time, the DSM tool tracks social interactions in real-time, and the client pays based on the number of engagements generated.
Investment Highlights:
• Grew site to 12 million registered users since the relaunch in February, 2008, making Quepasa the fastest growing Latino website.
• Since its launch approx 45 days ago, Papacito, Quepasa’s online dating application, has reported over 590,000 user engagements making it one of the more popular sections on Quepasa.com. The Papacito application is part of Quepasa’s overall monetization strategy which will focus on distributed social media and applications tied into Quepasa’s virtual economy.
• New Management Team and Advisors with significant track record of success.
• Targets fastest growing markets: Social Networking and Latinos.
• Launching multiple new initiatives: Social Applications, DSM marketing campaigns, new online and SMS based initiatives in partnership with Dr Rey, and other partnerships with major Latino media groups.
• Quepasa’s technical resource costs are kept low by employing a team of 60 in Hermosillo, Mexico, comprised of developers, graphic designers, community administrators, support staff, customer care, and translators.
Quepasa’s Target Market
Quepasa has its finger on the pulse of two of the hottest and fastest growing markets online: Social Networking and the Latino demographic.
Social Networking Market
The social media market has been growing aggressively. According to the Neilsen Company, 66% of the world’s Internet population visit social networking or blogging sites. Social Media sites now account for 17% of total internet traffic, which has tripled since 2008 (Nielsen report - Global Faces and Networked Places, March 2009). Within this context of rapidly evolving social media technology and market-share gains relative to more traditional internet formats, there has been significant acquisition activity led by large media and Internet companies. Most notably: Bebo was acquired by AOL for $750M and MySpace was sold to NewsCorp for $680M. To a certain extent, this acquisition activity reflects the ability of larger players to monetize social networking traffic as part of a broader offering of advertising properties and media formats.
Latino Demographic
Quepasa.com is positioned to leverage one of the largest and fastest growing markets in the world: the Latino demographic, which also represents one of the most coveted markets online. Latinos are showing significant growth in both population and buying power in the US. In fact, Hispantelligence reports that the purchasing power of this demographic increased to nearly $870 billion in 2008, representing 9.3% of the total US purchasing power and is projected to reach $1.3 trillion by 2015, which should equate to about 12% of the total US purchasing power. In addition, Latinos online tend to be much more affluent and be leaders within their communities. Large corporations are targeting these consumers, not only because of their significant increase in buying power and population, but also because they tend to be very brand loyal, so capturing their interest early on could lead to long-term loyal consumers. There is a lot at stake for advertisers to reach this market in a significant way, and Quepasa is in a unique position to give them significant access to these consumers. The advertising rates to target this demo reinforce this sense of urgency; US Hispanic-targeted campaigns typically run 3-5 times higher than general population.
Key Statistics
(as of 02/19/2010)
Ticker............................................ QPSA.OB; Market Cap.................................$38.59M; Share Price........................................$3.05 ; Shares Outstanding.................12.73M; Average Volume...........................27,853; Cash...(at last Filing)...................$2.07 Million; Fiscal Year End...........................Dec 31st
Insider Sentiment

The last QPSA insider buy occurred when ABBOTT JOHN C purchased a total of 15,000 shares on November 12, 2009. In the last 5 years insiders have on average purchased 52,380 shares each year.
Executive Team

Jeffery Valdez, Chairman

John Abbott, Chief Executive Officer
Thirteen years of experience in strategic advisory, mergers and acquisitions, focused on Mexico and Brazil; Senior VP –JP Morgan; Senior Advisor to MATT Inc. and Altos Hornos de México, S.A.; AB from Stanford, MBA from Harvard Business School.

Mike Matte, Chief Financial Officer
CFO -CyberguardCorporation, AmeriJet International, InTimeSystems International; BS from Florida State University.

Louis Bardov, Chief Technology Officer
SVP -Software Development, Customer Care and Customer Retention at Match.com; VP- Internet Development at Match.com; BS from Texas A&M.

Brian Garrett, VP New Business Development & Strategy
Co-founder and managing director of Crosscut Ventures; Eight years experience investing in numerous early-stage companies as a venture capitalist; Advisor to several digital media ecosystem companies; BS and MBA from Stanford University.

Stephen Kaplan, VP of Product Management
10+ year of product experience at Intermix/Myspace, Amp’d Mobile and Buzznet.

Kevin Hartz, Advisory Board Member
Co-founder and CEO of Eventbrite.com, Xoom Corporation, and ConnectGroup; Early-stage investor and advisor to startups such as PayPal, Geni.com, Friendster, Flixster.com and Trulia; AB from Stanford, Mst from Oxford.

Keith Rabois, Advisory Board Member
Serves as VP, Strategy and Business Development for Slide; VP of Business & Corporate Development at LinkedIn; Early investor in YouTube; Director at Yelp, Vendio, Xoomand FanIQ; AB Stanford University, Harvard Law School.

Investor Relations
The Investor Relations Group
11 Stone Street
New York, NY 10004
Tel.: (212) 825-3210
Fax: (212) 825-3229
Investor Relations
Erika Moran
Tom Caden
Public Relations
Enrique Briz
Industry Comparables:
Facebook
Date: June, 2009
Valuation: $10 Billion
Financing: $200 Million
Number of Users: 250 Million
Implied Value Per User: $40
Bebo
Date: March 14, 2008
Valuation: $850 Million
Financing: Acquisition
Number of Users: 25 Million
Implied Value Per User: $34
Twitter
Date: Feb. 15, 2008
Valuation: $235 Million
Financing: $35 Million
Number of Users: 10.5 Million
Implied Value Per User: $22
Imeem
Date: June, 2008
Valuation: $220 Million
Financing: $15 Million
Number of Users: 15 Million
Implied Value Per User: $13
Hulu
Date: May, 2007
Valuation: $900 Million
Financing: $100 Million
Number of Users: 15 Million
Implied Value Per User: $40
Slide
Date: Jan. 18, 2008
Valuation: $500 Million
Financing: $50 Million
Number of Users: 39 Million
Implied Value Per User: $12
Linkedin
Date: June 17, 2008
Valuation: $1 Billion
Financing: $53 Million
Number of Users: 23 Million
Implied Value Per User: $40
Zynga
Date: June, 2008
Valuation: Est $150 Million
Financing: $29 Million
Number of Users: 18 Million
Implied Value Per User: $8







QUEPASA
Date: 2/21/2010
Share Price: $3.05
Valuation [$3.05 Share Price (x) 23.57 M Fully Diluted Shares] = $71,909,761
Market Cap [$3.05 Share Price (x) 12.73 M Float Shares] = $38.824,246
Number of Users: 10 Million (Estimated for this date)
Implied Value Fully-Diluted Share Per User: $7.19
Market Cap Value Per User: $3.88
SHAREHOLDER EQUITY

Shares Outstanding Stock Options Warrants Fully Diluted Shares	12.73 M 6.41 M 4.43 M 23.57 M
Institutional Ownership	0.64%
Number of Floating Shares	8.3 M

Listen to conference call with Quepasa's CEO: John Abbott at: http://bit.ly/c9U8FX

Quepasa's Website Address - http://www.quepasa.com
To Join the Quepasa website and help increase their numbers you can subscribe at: www.quepasa.com/login.php

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Traffic is UP again to a NEW HIGH at http://www.quepasa.com

QPSA, the publicly traded social network that focuses on the Latino community world-wide, today announced that the website had user growth for the month of August of 1,800,000 up 11.8% from July's 1.4 Million. The total Members http://www.quepasa.com is now at a staggering 18.7 Million Members.

Quepasa is also setting new daily records for new members, especially in Brazil. The company is doing amazing things with social networking especially in the Social Games arena with the release of SnapMeUp recently.

As the company releases more games this and next Qtr, no doubt Membership and Income will rise significantly.

Quepasa.com also had record traffic...(Click on Image to increase size)



For more details go to: http://www.quantcast.com/quepasa.com#traffic

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Quepasa.com Adds a Record 1.8MM New Members in August

Press Release Source: Quepasa Corporation On Wednesday September 1, 2010, 11:52 am
WEST PALM BEACH, FL--(Marketwire - 09/01/10) - Quepasa Corporation (OTC.BB:QPSA - News), owner of Quepasa.com, an online social network targeting the Latino community, today announced that the website saw its registered users grow by 1.8MM in August, up from 1.4MM members during the month of July, resulting in a total user base of 18.7MM members. At the same time, monthly unique visits totaled 14.4MM visits, an increase of 16% compared to the month of July.
Quepasa saw continued growth momentum in its Brazilian user base, which accounted for 446,000 of the site's new users, an increase of 53% over the month of July. Following Brazil, Mexico represented the second largest source of new users, with 313,000 new members in August, a 28% increase over the month of July.
"In the month of August, we saw great results from ongoing performance improvements, which resulted in a better user experience, particularly in geographies with slower internet connections," said John C. Abbott, CEO of Quepasa Corporation. "Enhanced site engagement, following the release of our VIP newsfeed and new social gaming titles, led to solid growth in our traffic numbers."
About Quepasa Corporation
Quepasa Corporation, headquartered in West Palm Beach, FL with offices in Los Angeles, CA; São Paulo, Brazil; Miami, FL; and Hermosillo, Mexico, owns Quepasa.com (www.Quepasa.com), one of the world's largest, trilingual, Latino social networks. Quepasa.com is an authentic Latino community that provides fun, interactive, and easy to use social tools, and rich multimedia content in English, Spanish and Portuguese to embrace Latinos everywhere, and empower them to connect online, compete in contests and games and share their interests, ideas, and activities.
http://finance.yahoo.com/news/Quepas....html?x=0&.v=1

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Could it be??? Could it Be that Quepasa is about to take off to new highs?

Well, the entire stock market has been heading down since March and my Top FIVE have found themselves in the same tailspin. However, I am definitely seeing "signs of life" in stocks like ANWM, MLKNA, MDGC, and yes even QPSA.

Quepasa shot up from sub-$1 in summer of 2009 to well into the $5.00's range this past Spring. With such a huge run up it is no doubt that the stock needed a breather. There has been some selling but for the most part the retracement has been on light volume. NOW, it looks like the sellers are out and the stock is beginning to regroup for another run at a new high.

Stock price sometimes disconnects from the performance of the company and that is certainly the case with Quepasa.com. The fact is that the management team has executed the business plan flawlessly culminating in yesterday's release of the 1.8 Million new users at Quepasa.com for the month of August. And, the fact that the company keeps hitting new highs in Unique Users as shown by Quantcast.com statistics on the site. (All of that information can be seen in the QPSA threads on this Forum.)

So, today we have some nice volume and shares up to $3.90. No doubt that the Social Games are coming on line. (QPSA has games similar to Facebook's Farmville) These games will generate huge Revenue and that revenue will be about 97% PROFIT because there is relatively no cost of production or user acquisition. The cost of production is handled in a Split % to the game provider and the user acquisition is handled through Viral Growth.

So, accumulate QPSA as it is moving north. The train is currently pulling out and leaving the station, IMO.

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Quepasa Corporation had a conference call today to review their earnings and various other information about the company. Attached you will find a PDF that works in conjunction with the conference call audio. Open the PDF attachment and then follow along on the audio by clicking this link: http://www.livescribe.com/cgi-bin/We...d=ljxJbzZqFlWF