Thread: Brne; smky; qpsa

CharlesD.net Top Stock Picks for 2012
BORNEO RESOURCE INVESTMENTS, LLC (BRNE)
SMOKY MARKET FOODS, INC (SMKY)
QUEPASA CORPORATION (QPSA)

Borneo Resource Investments, LLC (Symbol: BRNE.pk)
In November I had a conversation with Nils Ollquist CEO, President of Borneo Resource Investments, LLC (Symbol: BRNE.pk) and George Matin the BRNE contact at OFS Capital Group; I liked what I heard. A few days ago I spoke with Scott Chaykin, Borneo’s CFO and I encourage anyone interested in Borneo to contact Mr.Chaykin Matin with questions at (425) 329-2622.
I have been accumulating shares of BRNE for some time now (since before the reverse merger) and think the story has finally come together. Matin told me that:
1. An IR-PR firm has been hired and will begin to educate the investing public on the potential of BRNE. Matin told me that the company would likely start putting out information just after Thanksgiving.
2. BRNE is working to become Fully Reporting and that should be accomplished within the next 6-weeks or so...likely between Thanksgiving and Christmas.
3. Once fully-reporting status has been obtained the company will Up-List to the QB or QX Exchange. More than likely that up-listing will happen in January.
4. Once up-listed the company will make application to become listed on NASDAQ and that the up-listing to NASDAQ should be in place during the 2nd Quarter of 2012.
One of the exciting things about BRNE is that they are in Indonesia and have been acquiring property for coal production. At the end of this update is a recent PR released about a month ago. Here is an excerpt from that PR: "The first agreement is for the mining rights on a 1,300 hectare property which the Company believes, pending a final geological study, contains estimated coal reserves of 8 million tons. The second agreement is a memorandum of understanding for the mining rights for an additional 2,000 hectare property, which the Company believes will contain over 12 million tons in estimated coal reserves. Given the current median market price of steaming coal of approximately $50 per ton, the coal located on these two properties, prior to the costs of extraction and shipping, could possibly exceed $1 billion."
One hectare is equal to about 2.47 Acres. What I have learned is that the company plans to acquire more properties in Indonesia for supply to high growth economies in Asia, particularly India and China.. A few things we can count on is that rapidly growing Asian economies will need more power; Coal will be a major need going forward.

Investment Highlights:

• Borneo Resource Investments Limited (“Borneo Resource”) engages in acquisition of thermal coal mining licenses in Kalimantan Indonesia and coal trading.
• Based in Washington, USA, Borneo Resource is US public reporting company traded on US over the counter market. The trading symbol is “BRNE”
• Borneo Resource currently controls 2 high quality mining concessions with operating licenses covering a total area of 7,300 hectares (approx. 18,000 acres) and estimated reserves of 48 million metric tons. thermal coal reserves.
• The Company’s coal reserves contain thermal coal that is primarily used for power generation. With rapid economic growth in both China and India (combined population 2.7 billion), demand for power is growing exponentially. Both China and India are major thermal coal importers and are actively seeking to acquire stockpiles of coal to supply future needs, so the price of coal is expected to continue rising.
• In addition to its existing properties, The Company currently has a pipeline of 6 concessions encompassing 84,000 hectares with estimated reserves of 400 million metric tons
• Based on its existing concession portfolio, Borneo Resource’s net asset value per share is calculated to be approximately $35. The potential capital gain is tremendous.

Borneo Resource’s Coal Reserve:
Existing Concessions:

• PT Chaya Meratus, Kalimantan
  • Estimated reserves of 40 million metric tons
  • Property size(following upgrade of production license) 6,000 hectares
• PT Integra Prima, Kalimantan
  • Estimated reserves of 8 million metric tons
  • Property size, 1,300 hectares
• Based on existing market price of around $60 per ton, estimated value of Borneo resource’s existing reserves would be $2.5 billion or US$35 per shares。

Planned acquisitions：
Six concession, (license,) properties comprising a total of 84,000 hectares of prime coal bearing property with estimated reserves of approximately 400,000 metric tons.

Revenue Projection:
The Company is currently negotiating on the sale of a 120,000 ton shipment of medium quality coal which will generate gross profit of around $3 million, anticipated to close before the end of 2011.

Borneo Resource’s growth strategy

• Borneo Resource’s asset growth strategy is by acquisition of existing concessions for exploration and production of thermal coal in Kalimantan, Indonesia.
• The Company’s near term revenue strategy is based on trading stocks of thermal coal from the Kalimantan region, capitalizing on robust demand from China and India。
• Borneo Resource has a strong relationship base and political connections in Kalimantan, essential for sourcing of attractive concession opportunities。
• Borneo’s key management consists of experienced mining professionals, including Australian trained mining geologists, investment bankers and private equity investors. The Company also has an on-the –ground team in Kalimantan for project evaluation and due diligence.
• The Company aims to maximize its shareholder’s value by leveraging its professional expertise in the mining and resources industries with extensive capital markets experience and, most importantly, capitalizing on its ability to acquire valuable concession assets at attractive cost through its strong relationship base in the region。

Key Personnel:
Nils Ollquist, Chairman/CEO
Former head of M&A at Bank of America in US and Hong Kong, founder of US listed Orient Packaging Limited, former advisor to the holding company of Umami Sustainable Seafood Inc. A US publicly company, former advisor to Tulla Resources, a major Australian coal mining and resource company. Listed on ASX。
Carlo Muaja, Director/COO
Qualified CPA, Former commercial banker at Chase Manhattan Bank, Indonesia, with focus on FX trading and mining/resource advisory. Spent 2 years as in auditing in California
Scott Chaykin, CFO
Licensed US CPA and former CFO of various US public companies
Nicholas Bryan, Director
Former Executive Director of HSBC and Head of Global Settlements
Grace S J Sarendatu, Legal and Notary public
Indonesia certified public notary and legal advisory specializes in mining/resources negotiation, due diligence and investment execution.
I like this company a lot and I plan to continue accumulating shares of BRNE with my personal share-price target focused on $12 - $15 within three years. Shares of BRNE Closed at: $1.60 yesterday, November 8, 2011. In my opinion, Borneo is a real company with real assets and should do well going forward.


NEWS RELEASE (referred to on page one):
BOTHELL, Wash., Oct. 12, 2011 /PRNewswire/ -- Borneo Resource Investments Ltd. (OTCPK: BRNE), a Company that recently acquired Interich International Limited and changed its name from Aventura Resorts, Inc., announced, that as part of the ongoing implementation of its strategy of acquiring natural resources in the Kalimantan Province of the Republic of Indonesia, it has signed two new significant agreements to acquire properties with coal reserves.

These agreements have been entered into by Interich International Limited. The first agreement is for the mining rights on a 1,300 hectare property which the Company believes, pending a final geological study, contains estimated coal reserves of 8 million tons. The second agreement is a memorandum of understanding for the mining rights for an additional 2,000 hectare property, which the Company believes will contain over 12 million tons in estimated coal reserves. Given the current median market price of steaming coal of approximately $50 per ton, the coal located on these two properties, prior to the costs of extraction and shipping, could possibly exceed $1 billion. Both properties currently have both mining and production licenses, and will be able to export the coal from Indonesia. The Company indicated that as it acquires the mining rights for properties and conduct the necessary geological surveys, it will disclose the proven levels of the properties reserve estimates utilizing international standards. The Company has retained the services of an international mining geology firm in Jakarta, Indonesia to start this process.

The Company has initiated discussions with potential strategic partners in Europe, Asia and Australia to bring in additional capital and expertise to our mining platform. These strategic partners may invest in infrastructure for the properties under its control, both for mining and construction of onsite power generation facilities, to take advantage of the high quality coal located on its properties. This will significantly reduce the capital requirements that development of the properties would otherwise impose in exchange for revenue sharing for the coal mined and power produced.

In the process of conducting geological studies and establishing operations in Indonesia, the Company also gained access to significant quantities of coal which it will monetize. The Company projects that its first trade will be on approximately 120,000 tons of medium quality coal which will be sold to an Indian end user. This initiative should result in the generation of revenue by the end of 2011. These opportunities will enable a trading business to be operated in parallel to the acquisition and development of mining properties.

Even as the Company focuses on thermal coal, to the extent that its coal concessions are heavily forested (Kalimantan contains some of the largest reserves of tropical rain forest outside the Amazon), timber licenses will be obtained so that in the early stages of the development of the coal concessions the timber can be harvested using sustainable harvesting practices. Revenue from such timber sales will provide funding for mining operations and enhance the Company's profits.

"We have very strong relationships in Kalimantan and I am pleased that they are providing us with access to extraordinary opportunities in the region," said Nils Ollquist, CEO and President of Borneo Resource Investments. Mr. Ollquist further stated that, "We will continue to build value for our shareholders by not only increasing our holdings in the region, but also by increasing our visibility and transparency with our shareholders."

The Company's corporate activities continue to move forward. The Company is building its management team and Board of Directors. In anticipation of filing a Form 10 with the Securities and Exchange Commission before the end of 2011, the Company is the process of being audited and preparing the necessary documents. Mr. Ollquist noted, "Our ultimate goal is to list our shares on a national securities exchange in the United States and our actions over the last several months will bring us closer to that goal."

About Borneo Resource Investments Ltd. (BRNE).

With its international headquarters in the Seattle, Washington area, Borneo Resource Investments Ltd. through its wholly-owned subsidiary Interich International Ltd, obtains mining concessions to explore and develop coal reserves in the East Kalimantan region of the Republic of Indonesia.
Borneo Resource Investments Ltd. Makes Investments in Properties With Coal Reserves - Yahoo! Finance

LATEST FACT SHEET INFORMATION:
Trading symbol: BRNE (OTC)
Borneo Resource Investments Ltd.
19125 North Creek Parkway
Bothell, WA 98011
Phone .425.329.2622
Fax .408.580.8434
Email: info@borneore.com
Borneo Resource Investments (BRNE.PK)

Overview December 2011

Borneo Resource Investments is a US publicly‐traded resource project generator, which through and with its wholly-owned subsidiary, Interich International, controls resource concessions and licenses indicated to contain substantial reserves of thermal (steaming) coal. The concessions are located in Kalimantan province, on the island of Borneo, Republic of Indonesia.

“High-Quality Steaming Coal in Indonesia”

Market Opportunity

Indonesia has just had its credit rating raised to “investment grade” by Fitch after 14 years. This opens up the country to higher levels of Foreign Direct Investment (FDI), most of which will inevitably flow into natural resources.

The Directorate of Coal of the Indonesian Ministry of Energy and Mineral Resources has estimated that the total deposits of coal in the Kalimantan province exceed 21.1 billion metric tons. The quality of coal in the region is
generally excellent, with a high calorific (heating) value and relatively low ash and sulfur content. The coal is suitable for use as the key component of the power generation industry in India and China, where governments are actively looking to diversify away from the use of lower quality, highly pollutive coal.

Indonesia's geographic location makes it ideally suited to provide supply into two
of the world's largest coal consuming economies.

· Both India and China have targeted significant expansion of their power networks with thermal coal fired power stations. It is estimated that India alone will need to construct over two hundred and fifty, 100‐150 MW power stations in the next 3 years to meet projected energy demands;

· The Indian and Chinese Governments have been attempting to build reserves of thermal coal to meet demand and secure long term supply contracts to even out price fluctuations. This strategy has resulted in steadily increasing prices for high quality coal to around US$100‐125 per metric ton;

· Global investment in energy technologies has expanded by 60% to over US$92 Billion.

The Company targets concessions for which at least a preliminary reserve estimate has been completed.

Following acquisition of a concession, the Company will commission accredited mining engineering reports and submit to appropriate industry bodies (such as JORC in Australia) for review and confirmation of the geology to the level of internationally-recognized standards. This will provide stakeholders and customers with the assurances they need to properly evaluate the company and its assets/concessions.

Competitive Advantage

Kalimantan province, situated in the island of Borneo, Republic of Indonesia is home to one of the richest deposits of thermal coal in the world.

Borneo Resources seeks to create value for its shareholders by identifying discoveries that it will JV or sell to major mining corporations. The Company has adopted a business model that minimizes this financial risk and maximizes the chance of monetizing an ore body.

The Indonesian government has, for many years, been awarding coal mining exploration and licenses to local indigenous groups. The Company has strong connections to this group, including key executive appointments, thereby creating preferential access to these concession opportunities.

Assets

Since its inception, the Company has acquired two excellent concesions. The first is an 80% interest in PT Chaya Meratus Primecoal (“Meratus”), an Indonesian company holding exclusive exploration and development rights for up to 6,000 hectares in the Tanjung Area Basin of south east Kalimantan province.

The second is an exploration and production license covering 1,300 hectares in the Kalimantan province through an agreement with the concession holder, PT Integra Prime Coal (“Integra”).

The estimated present value of Borneo’s initial coal reserves are approximately US$1.2 - 1.4 billion applying a conservative pricing structure of US$100 per metric ton on the Company's estimated current level of reserves of 12 14 million metric tons (‐ currenlty non-JORC compliant).

The Company is currently negotiating to acquire additional steaming coal concessions of 98,000 hectares. If successful, the Company will be one of the largest concession owners in the Kalimantan province, making it a prime target for potential joint ventures (JV) or acquisition.

In addition to its coal reserves, management has established a coal trading operation which will aggregate smaller volumes of coal produced by regional mines for sale to strategic international buyers in India and China. The first trading contract for a 120,000 metric ton shipment has been secured and is expected to close before the end of Q1 2012.

Strategy for Growth

The Company’s operational strategy is predicated on the further acquisition of thermal coal deposits in the Kalimantan province, with the goal of building one of the largest collections of thermal coal concessions in the region. To that end, the Company is currently reviewing offers on a number of additional concessions with
detailed mining studies and full exploration, production and export licenses.

By adopting the project generator business model, Borneo Resources leverages its ability to generate potential projects, while partnering with companies better positioned and able to raise the capital required to develop world-class thermal coal deposits. In financial terms, this leverage significantly multiplies each dollar spent by Borneo Resources.

Borneo Resources itself is required to raise relatively small amounts of capital through equity financing, thus minimizing shareholder dilution. This capital is used to fund exploration, acquisition of mineral rights and marketing. Once the geological potential has been demonstrated and mineral rights are secured, Borneo Resources finds business partners that will invest in the project through earn-in joint venture agreements and non-recourse financing.



Public Company Stats
Ticker: BRNE
SIC Code: 1220
State of Incorporation: Nevada
Fiscal Year End: 12/31
Price (12/16/2011): $3.00
52-wk High/Low: $0.11/$5.00
Shares Outstanding: 70,525,205
Shares Auth. (Preferred): 100 million
Shares Auth. (Common): 400 million
Float: ~7.1 million
Market Capitalization: ~$210 million

Investor Relations contact
Mark Moline
Cinapsys, Inc.
Phone: 760-208-1894
Fax: 949-861-6388
http://www.cinapsys.com

Management

Nils Ollquist, Chairman/CEO

Mr. Ollquist has over 30 years of international banking and corporate finance experience, including several years as a specialist project and resource finance manager with a major European bank. He has extensive experience in coal and iron ore financing in his native Australia. He began his career in the Australian Treasury where he was involved in International Capital Markets issues and infrastructure financing. During this time he also served as Senior Executive Assistant to the Secretary to the Treasury, Sir Frederick Wheeler.

Mr. Ollquist has worked for a major resources bank in Amsterdam, and in corporate finance in New York, Los Angeles, Hong Kong and Sydney. He was an early investor in China, founding Orient Packaging Holdings in Wuhan, China in 1997, subsequently listed in the US and ultimately sold to a Canadian-listed forest products group. Mr. Ollquist has been doing business in Indonesia since 1993.

R. Scott Chaykin, CFO

Mr. Chaykin is a US CPA with over 30 years of hands-on experience in financial and administrative management, corporate structuring and compliance, including strategic planning, operations, financial modeling, sales and marketing.

He has expertise in regulatory affairs, risk management, human resources, management accounting, and public
company reporting.

Carlo Muaja, COO and Director

Mr. Muaja is an Indonesian national based in Hong Kong. He was born in East Kalimantan, Indonesia and was educated in Asia and the US. He has a mining industry and accounting background.

Mr. Muaja has a strong network of relationships, both within government and the private sector in Indonesia, and is responsible for development and execution of the Company’s concession acquisition strategy.

Disclaimer

Statements made in this Report which are not purely historical are forward-looking statements with respect to the goals, plan objectives, intentions, expectations, financial condition, results of operations, future performance and business of Borneo Resource Investments, Ltd. including, without limitation, (i) their ability to successfully implement the business plan and their ability to retain concessions, relationships with contractors, vendors, individual representatives and/or government agencies; and (ii) statements preceded by, followed by or that include the words "may", "would", "could", "should", "expects", "projects", "anticipates", "believes", "estimates", "plans", "intends", "targets" or similar expressions. This report was produced from information provided by the
Company or otherwise available in publicly available resources. The information herein is believed to be reliable but is not warranted as such. You should perform your own due diligence to verify any material information presented herein, and review the Company’s public filings. This document is not a recommendation to buy or sell any securities.


Smoky Market Foods, INC (Symbol: SMKY)
First off all investors considering SMKY should read the latest shareholder update letter at: http://www.smkycorp.com/SMKY%20images/yearendupdate.pdf
As a result of current consumer trends and preferences toward healthfulness, taste, price/value and convenience in the packaged food and restaurant food they purchase, consumers are demanding food quality attributes that meet their standards. Smoky Market, with its tantalizing smoky aroma, pure Smoke-Baked wholesome quality and great convenience, can fulfill their need.

As a result of economic conditions and retirement plan losses there are millions of “baby-boomers” and experienced individuals seeking low-risk entrepreneurial opportunities to create either full-time or part-time income. Smoky Market, with our superb quality of wood-smoked foods and innovative retail & foodservice franchise programs, can fulfill their need.

As a result of a persistent and diligent process, SMKY’s time has come …
Origin of Concept
The concept for Smoky Market originated from the barbecue restaurant enterprise previously operated by the Founder, Eddie Feintech. The custom-designed, wood-burning brick & iron ovens used in each restaurant produced a quality of real smoked goodness; each oven prepared about 700 pounds of wood-smoked meat per day. However, growing the concept into a chain of hundreds, if not thousands of outlets that had to cook raw product on site was not feasible. Developing a national chain of smoked food restaurants, as well as the prospects of building a national packaged smoked food brand, would require mass-production using a USDA-approved, commercialized design of the proprietary smoker-oven.
Eddie personally financed much of the early stages of R&D and began taking in seed investors to cover continuing development costs. Standard USDA approved “smokehouses” burn hickory dust or atomize with liquid smoke to only smoke-flavor meat and fish, and require the use of additives and preservatives. But, Eddie’s proprietary design and commercialized wood-burning oven would genuinely “smoke-bake” and mass-produce restaurant quality product, and the development process required several million dollars and nearly 13 years to complete.
In fulfillment of his dream to create a national food brand enterprise, Eddie developed his proprietary smoking design into custom-engineered & USDA-approved, wood-burning oven technology, which can produce up to 20,000 lbs. of real smoked meat per day or up to 30,000 salmon fillets. Because food processing was so capital intensive with substantial fixed expenses, Eddie secured a large commercial food-processing partner with whom to contract for production of product on a national scale and readied the concept for financing and implementation.

Company’s Business
Smoky Market Foods, Inc. (SMKY) produces a line of uniquely prepared, wood-smoked food and operates as a holding company of three business divisions established to generate revenue from branded distribution on a national and international scale. Each entity operates in a respective sector of the two primary sectors of the food industry:

• Smoky Market operates in the retail sector and generates revenue through on-line ordering and POS display merchandising of premium quality, wood-smoked prepared foods; retail will be first to launch with financing.
• Smoky Kosher operates in the retail sector and generates revenue through on-line ordering and POS display merchandising of premium quality, wood-smoked foods that are prepared Kosher and in strict accordance to certification standards of the Orthodox Union for Kosher food.
• BarBQ Diner operates in the “fast-casual” foodservice sector and generates revenue through innovative franchising of “no-cook” modular restaurants; this division will be launched when cash flow has been created from retail operations, unless licensed for its launch.
• Management
  SMKY’s management is comprised of industry professionals and corporate operating affiliates for a well-rounded organization of expertise in all areas of its operations. SMKY’s structure of virtual management reduces its fixed overhead.
• Edward Feintech; Chairman, Pres. & CEO
  Eddie has 30 years experience in the industry and operated barbecue restaurants that also produced for satellite restaurant outlets, which initiated the mass-production concept for Smoky Market operations. He designed the smoker-oven technology and developed the Smoky Market menu systemization plan for modular restaurants, and is the Company’s largest private cash investor and shareholder.
• Eddie’s plan for executive management of SMKY is the concept of “Servant Leadership”, which enables his brand managers and regional operating group managers to enjoy creativity with support, while adhering to strict accountability.
• Shane Campbell, CPA; CFO
  Shane has served as a financial officer and business advisor to numerous small and medium sized businesses including publicly traded companies over his 23 years of public and private practice. He has been a guest speaker on mergers/acquisitions, audit/accounting standards and other topics. He has also been retained as an expert witness in forensic accounting in litigious matters. Mr. Campbell specializes in providing financial services to early stage and pre-revenue companies.
• Dennis Harrison, PhD; CIO
  Dennis has held senior level management positions as VP/Business Development, Executive Vice President and CIO. As such he has been responsible for technical design and integration for complex business processes in the retail service areas that included domestic, as well as off-shore projects involving eCommerce, voice and data customer service. His technological expertise is in reducing complex problems to their simplest and most economical solutions.
• Scott L. Bargfrede; Board Member
  Scott has served as a director of SMKY since May 2006. He has been the President and CEO of First American Bank in Webster City, Iowa since October 1999, and graduated from the University of Minnesota in 1979 with a Bachelor of Arts degree in Ag-Business Finance. In 1992, he graduated from the University of Wisconsin Graduate School of Banking.
• Regionalized Market Operations
  SMKY’s field management will be a decentralized operating organization comprised of five “Regional Operating Companies” (ROC) to be developed by a respective Regional President who is familiar with the particular demographic food preferences within his or her region. Smoked meats and fish, recipe dishes and side order products will be specifically stylized to regional consumer preferences, with each ROC having been formed to offer the unique opportunity of “corporate entrepreneurship.”
• The management philosophy of “Servant Leadership” is the support structure by which a decentralized operating organization can viably function. Its inverted pyramid design enables SMKY to provide veteran industry ROC executives with the foundation support of quality product, capital, branded marketing plan and accountability. They “buy in” for the dream shot of tapping their creativity and expertise to build their own successful food company, and to receive an enticing share of the profit they deserve and the up-side equity appreciation of SMKY they helped create.
• Unique “Smoke-Baked” Foods
  The value feature of SMKY’s wood-burning oven design is that meat, fish & barbecue beans are uniquely, but delicately “Smoke-Baked” by the billows of moist smoke heat generating from the firebox, which is slowly burning freshly cut timber. The smoke-heat-vapor infuses the meat and fish with a delicious and unmistakably authentic smoked taste that is also light and delicate. No additives (water, sugar, high amounts of sodium, liquid smoke, etc. ) and no preservatives are used in the process; only garlic, natural spices, and very little sea salt are applied as seasoning. SMKY will produce and market a complete line of delectably good Smoke-Baked foods that includes beef, pork, poultry, lamb and fish along with a gourmet menu of quiches, soups, casseroles, finger-foods and side order dishes.
• By contrast, commercial smokehouses used by typical competitor companies to produce smoked meat and fish use hickory dust to create smoke flavor or liquid smoke to penetrate the product for merely a sensation of smoky taste, with high concentrations of additives and injected liquids (and brining) to make up for cook shrinkage cost or to cure in the smoking process. Under USDA standards governing labeling and nutritional panel regulations for smoked food processing, SMKY’s quality of Smoke-Baked meat and fish is believed to be the only authentic and genuinely healthful of all smoked meat processors in the country.
• USDA Food Processing
  SMKY is in partnership with a large and well-respected USDA contract meat processor (Mary Ann’s Specialty Foods, Inc. ) located in Webster City, Iowa. Their facility includes 100,000 square feet of processing, cold and dry storage space, with 15 acres of land and existing buildings available for plant expansion, corporate offices and distribution. Under the terms of the Processing Agreement, the Company pays a fixed per-pound or per-unit processing fee. The fees will vary based on the particular item being produced and there is no minimum guarantee of processing fee, so essentially SMKY has no debt and very limited fixed overhead expense to produce its product. The affiliation with Specialty Foods provides SMKY with expert management in meat processing and distribution, and the ability to tie into Specialty Foods’ economies-of-scale in raw product and packaging/shipping materials requisitioning to support solid margins.
• By forging strategic partnerships, SMKY will expand its product offerings while maintaining its unique brand identity. SMKY will use co-packing affiliates to produce a selection of specialty gourmet items, including one-dish meals of smoked meat/fish pasta, casseroles, quiches, pizzas and delicious meat pastries. Co-packers will provide SMKY with expert assistance in developing unique menu items that remain consistent with the healthful focus of Smoky Market brand foods.
• SMKY has the existing production capacity from its mid-size smoker-oven to generate annual (retail) revenue of $35 million; EBIDTA is projected at 20% with only 15% of capacity needed to reach sustaining profitability and cash flow As capacity is increased, new menu items will gradually be introduced to continually stimulate customer demand. Each full-size smoker-oven requires only 120 days to fabricate and install, with each oven ($500,000 cost) capable of generating annual revenue up to $70 million.

Processing & Product Highlights

• Only hormone-free, free-range and 100% naturally raised or harvested meat, poultry and fish are purchased for processing.
• Wood-burning smoker-oven systems burn freshly-cut hickory & apple timber to delicately Smoke-Bake meat and fish; it is a real and authentic preparation.
• Smoke-Baking process is real, authentic and pure; no additives (water, sugar, high sodium, MSG, brine solution) or chemical preservatives.
• Food items are portion-packaged and vacuum-sealed, requiring minutes to heat by its foodservice chain operators and consumers.

Marketing Operations
Smoky Market is a “life-style” food product that fulfills and satisfies peoples’ needs; it’s flavorful, healthful, entertaining, convenient and versatile. Sampling creates customers and the brand’s story will be promoted to grow buying continuity. This is relationship marketing where customers are built and maintained around product quality and direct personalized customer service. SMKY plans to make its products easily available for purchases in either hot or cold form, and to invest heavily in the sampling of its products to drive consumer demand.

Smoky Market – Brand Development
SMKY will execute a three-point marketing strategy to develop the Smoky Market brand and product distribution on a national scale. The timing of each plan is dependent upon the amount of available capital SMKY has secured from its financing to cover the respective costs.

Internet Sales
Retail sales direct to consumers via Internet marketing operations that target specific segments of on-line food buying population that include health & fitness, recreational, gourmet dining & entertainment. Internet sales require capital for only direct marketing expenses and inventory to build brand awareness & revenue, with mostly variable cost and high retail profit margins.

Retail Point-of-Sale Merchandising
Retail sales of selected items through supermarkets, beverage chains and upper-scale retailers where premium quality gourmet foods are sold. Selling venues will feature attractive point-of-sale (POS) display merchandisers that sell both food packages and containers of SMKY barbecue sauce, coleslaw dressing & Smoke-Baked beans to enhance Smoky Market’s branding presence. The objective is to make Smoky Market products more easily and conveniently accessible to customers, which makes advertising expense much more effective and capital-efficient from cross marketing promotion between Internet operations and retail merchandising.

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Cable TV Infomercial Sales
National branding of Smoky Market will be significantly intensified with the introduction of new and exciting gourmet menu items that will be featured on cable TV informercials and related food channels. The expanded line includes seafood specialties, lamb, Cornish hen, cocktail finger foods, and sumptuous one-dish healthful meal recipes that will only be sold on-line. Infomercials will also be produced to feature an innovative program of Smoky Market business opportunities that promote the use of self-contained modular carts for on-site tasting and sales of Smoky Market products.

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Launch of Smoky Market Retail Sales
SMKY will execute a three-point marketing strategy to develop the Smoky Market brand and product distribution on a national scale. The timing of each plan is dependent upon the amount of available capital SMKY has secured from its financing to cover the respective costs.
With financing, SMKY will launch into retail branded sales of its opening products through Internet marketing and display merchandising in supermarkets. Internet sales will be generated by targeted marketing to i) the customer databases of corporate affiliates and ii) the groups of consumers that include millions of truckers, RV users, gourmet food buyers and the huge population of diet/ fitness enthusiasts whose life-style Smoky Market fits into. SMKY will be paying Weight Watchers a monthly fee to reach their six million members every month, with similar programs with other Internet affiliates as well. Social networking will enable peoples’ excitement about SMKY (and its stock) to go viral.
To introduce the brand with the highest impact for positive consumer perception, SMKY will feature its Smoke-Baked salmon. This item is most unique as all other brands of commercial smoked salmon sold in the market contain high levels of sodium, sugar, water brine, starch, coloring and forms of preservative. SMKY’s salmon is an incredibly versatile product and demonstrates very well the economic benefit of price/value when using it as an ingredient in recipe dish meals, salads, etc.

Quepasa Corporation (NYSE Amex: QPSA)

Quepasa is a social media technology company focused on audiences worldwide. According to their website, Quepasa.com takes the best of the social web and delivers it in the form of fun, interactive and distinctly Latin online experiences. However, with the recent purchase of MyYearbook.com (http://www.myyearbook.com ) there is strong evidence supporting Quepasa Corp will now focus on multiple demographics on a worldwide basis. This acquisition, broader focus, and consolidation of the QPSA shares throughout 2011 combine to give me confidence that QPSA will be one of my top three performers in 2012.
As I write this article, shares of QPSA are trading at $3.07 per share down from $15.45 in January of 2011 when the company shares hit an all-time high. The company shares came under selling pressure in 2011 by Shorts and then accentuated when management did not have a Q&A in their first Conference Call as a NYSE-AMEX listed company. However, the company share price had also gotten much ahead of its value and was likely caught up in the euphoria of other social networks talking about going public. That amid falling Year over Year comps for website visitors all combined to a major sell-off that lasted throughout last year. What’s new? Well, I think the fact that Quepasa decided to buy out MyYearbook.com is the coup necessary to revive share-price performance.
MyYearbook was initially created by two high school students, David and Catherine Cook, and their older brother Geoff, during Spring Break of 2005. Catherine persuaded Geoff, who founded EssayEdge.com and ResumeEdge.com from a dorm in 1997, to invest in their project. At the launch of the site in April 2005, Dave was a junior and Catherine was a sophomore; the project was initially activated at Montgomery High School, in suburban New Jersey where they attended. The site was created entirely by developers in India.
In 2008, myYearbook partnered with casual game developer Arkadium to bring Flash based games to the site. The games incorporate Lunch Money, the myYearbook virtual currency. Lunch Money earned playing games are used elsewhere on the site.

In April 2009, the site added the Meebo instant messaging client to the site in order to provide real time chat.
In November 2009, myYearbook launched Chatter, a real-time stream that incorporates media sharing and gaming to help bring members together. Games you can play inside the stream include Ask Me, Rate Me and 2 Truths and a Lie. These games incorporate mechanics that help myYearbook members meet each other. By April 2010 the site reported the Chatter feature surpassed 1 million posts per day.

In January 2010, myYearbook rolled out a new site design aimed to appeal to an older demographic. Of note is the "winning" site design was chosen through crowd-sourcing its members.^[5]

In May 2010, myYearbook launched an iPhone/iPod Touch and Android application designed to bring the Chatter real time feed to mobile devices.

In July 2011, myYearbook announced it had agreed to be acquired by Latino social networking site Quepasa for $100 Million In Cash And Stock. The purchase was finalized on November 11, 2011. SOURCE: Wikipedia myYearbook - Wikipedia, the free encyclopedia.

The following are excerpts from the Morgan Joseph TriArtisan Coverage Initiation on October 3, 2011…

Social Media is a Growing Phenomenon. Social media consumption is
expanding rapidly as it becomes part of many online users’ daily routine.
In the past year, total time spent on social media websites has more than
doubled to 113bn minutes from 55bn minutes. The number of social media
users also increased by 13.9%, to 1.970bn from 1.730bn.

Quepasa is Focused on Social Discovery. Unlike Facebook, which
concentrates on connecting friends, and Match, which focuses on dating,
Quepasa connects people who theoretically should—but don’t yet—know
each other. The website encourages casual flirting and dating through
social games.

Mobilizing the Mobile Space. We believe that the acquisition of
myYearbook is a strategic move for Quepasa to capitalize on the growing
mobile space as well as expand its existing user base. Over the past year,
myYearbook has experienced a surge in users, mainly for the teen and
young adult demographic, and in mobile traffic.

Social Gaming Slated for Robust Growth. One product of social
networking sites is the development of social games—online games
that allow players to interact with their online network of friends or
with strangers who happen to be playing the same games. According
to e-Marketer, social gaming is poised to become a multi-billion dollar
industry, in which consumers are expected to spend $653mm on virtual
games, a 28% increase compared to just two years ago.

Streamlining Games Development and Retaining More Revenue.
With its recent acquisition of XtFt Games, Quepasa is aiming to streamline
game developers' ability to offer games on its platform as well as
to develop its own games, so that the company can retain 100% of
the revenue when the game is posted on Quepasa.com and receive
a developer-revenue cut when its games are used on other websites.
The company appears to be doing well with its first proprietary title,
Wonderful City.

A Growing Industry: Social Media. Social media consumption is a growing
phenomenon that is becoming part of many online users’ daily routines and focus while
on the Internet. As an alternative platform for social interaction, social media allows
content and theme to be easily integrated across platforms. Users who share similar
characteristics or common interests can easily convene, despite geographic limitations.
In recent years, this landscape has become more definitive, though the projected growth
for the industry remains high. Facebook and Google, two early pioneers of the space,
have served as the hub and platform for other forms of social interactions including, but
not limited to, e-commerce sites, location services, and discussion boards, etc.
Unlike traditional media, in which content creation is limited to a select few people,
social media through the Internet allows anyone with an idea to produce and express it.
As people become more comfortable with establishing an online identity, they are able to
form social circles, often reflective of and sometimes even more comprehensive than the
ones in the real world. In the past year, total time spent on social media websites has
more than doubled to 113bn minutes from 55bn minutes. The number of social media
users also increased by 13.9%, to 1.970bn from 1.730bn. We have a positive outlook on
the social media industry and anticipate further favorable growth patterns in the future.

Social Discovery: An Emphasis on Meeting New People. Social media has transformed
traditional ways of how people interact with one another. On a year-to-year basis, users
of websites and blogs showed minimal change in numbers, while Facebook and Twitter
users showed 71.4% and 153.3% growth, respectively. Unlike social networks that link
mutual friends with each other, Quepasa offers a distinctive advantage by connecting
people who should—but don’t yet—know each other. The website encourages casual
flirting and dating through social games. Currently, the site caters to users who share a
common ethnic background as well as the Spanish and Portuguese language. As an all purpose
social discovery and networking site, Quepasa incorporates platforms for
alternative social media exchange, including discussion, e-commerce, and gaming.

Mobilizing the Mobile Space. The acquisition of MyYearbook is a strategic move for
Quepasa to capitalize on the growing mobile space as well as expand its existing user
base, in our opinion. Over the past year, myYearbook has experienced a surge in users,
mainly for the teen and young adult demographic, and in mobile traffic. In 2010, the
Latin American mobile market experienced tremendous growth; according to IDC, the
overall Latin American mobile market grew 28% compared to a global average of 17.9%,
and the Smartphone market grew a staggering 145%. As one of the largest media
properties in the U.S., myYearbook has over 1bn page views on mobile platforms and
1.2bn page views on the Web each month. It is also ranked the #1 website in the
comScore Teens category, citing more visits, minutes, and page views than any other sitein the category. The merger of both companies should further highlight the social
discovery theme. MyYearbook, which expanded into iPhone and Android in mid-2010,
reportedly has 40% of its daily users now logging in via mobile devices. Through
myYearbook, Quepasa should also have access to the five recently acquired Androidpowered
mobile games (including the popular Toss It and Tic Tac Toe) as well as
Android multiplayer gaming engine FlockEngine. Simply put, we believe this transaction
served as a bid for Quepasa to tailor relevant mobile technology platforms as well as
effectively double its existing user base.

Social Gaming Positioned for Robust Growth. One product of social networking sites
is the development of social games—online games that allow players to interact with
their online network of friends or with strangers who happen to be playing the same
games. According to e-Marketer, social gaming is poised to become a multi-billion
dollar industry, within which consumers are expected to spend $653mm on virtual games,
a 28% increase compared to just two years ago. Social gaming shows strong trends of
user growth, in our view, especially when compared with console gaming. As of yearend
2010, the global social gaming market was estimated at approximately $1.5bn, and
poised to climb approximately 167% to over $4bn by 2015. By 2012, the number of
social gamers in the U.S.—defined as those users who play at least one game on a social
network at least once per month—is estimated to be nearly 30% of Internet users and is
expected to reach almost 70mm.

John C. Abbott
CEO and Chairman of the Board, Quepasa Corporation
Mr. Abbott was appointed CEO and Chairman of the Board of Quepasa in October, 2007.
Between 2005 and 2007, Mr. Abbott served as strategic and financial advisor to the Chairman of the Board of Mexican industrial consortium Altos Hornos de Mexico, S.A. (AHMSA). AHMSA has held an ownership position in Quepasa Corp. since September, 2006.
In 2006, Mr. Abbott assisted in the formation of Mexicans and Americans Thinking Together (MATT - Mexicans and Americans Thinking Together), a San Antonio-based non-profit group focused on improving Mexico-US relations. MATT maintains a strategic partnership with Quepasa, through which both entities collaborate on technological and community outreach initiatives.
From 1992 to 2005, Mr. Abbott held several senior positions within JP Morgan’s Latin America Mergers & Acquisitions team, focusing on advising many of the region’s leading industrial groups on mergers, acquisitions, divestitures and restructurings.
Mr. Abbott has spent a significant part of his life in Latin America, having lived 13 years in Puerto Rico, Uruguay and Brazil.
Mr. Abbott earned his A.B. in History from Stanford University in 1992 and his MBA from Harvard Business School in 1997.

Michael Matte
CFO
Mr. Matte most recently served as Chief Financial Officer of Cyberguard Corporation from 2001 to 2006.
From 1981 to 1992, he was employed by Price Waterhouse as a Senior Audit Manager
From 1992 to 1998, he served as Chief Financial Officer for InTime Systems International, and from 1998 to 2001, he served as Chief Financial Officer for AmeriJet International
Mr. Matte is a Certified Public Accountant and holds a BS in Accounting from Florida State University.

Louis Bardov
Chief Technology Officer
Louis Bardov has over 21 years of experience in software development and technology management. Prior to joining Quepasa, Mr. Bardov served as Senior Vice President of Software Development, Customer Care and Customer Retention at Match.com. Having started as its VP of Internet Development in 2001, Bardov played a lead role in taking Match.com from a small startup to a household brand name.

Geoff Cook
Chief Operating Officer and President, Consumer Internet Division
Geoff is now the CEO of his third multi-million dollar Internet enterprise, all grown from zero traffic and zero revenue to significant market-leading properties.
In 1997, at age 19, Geoff founded EssayEdge.com and ResumeEdge.com from a Harvard dorm room. Each property dominated their respective niches: admissions essay and resume writing help. He then sold his companies to The Thomson Corporation where he led the Consumer Market Group for a Thomson Learning division, departing Thomson in 2005. Geoff has been featured in Wired, Rolling Stone, ABC News, CNBC, and USA Today.
In 2005, Geoff became the CEO of myYearbook, joining forces with his siblings. Geoff was instrumental in raising $20+ million in angel financing, venture capital, and venture debt to build the young company into the largest US social media site.
Geoff has an A.B. in Economics from Harvard University and lives in New Jersey with his wife Kerri and daughter Madeline.

QPSA has been a beauty Charles. It's always on my radar.