Rodman & Renshaw: Quepasa 4Q11 Preview

According to a recent research report, Rodman & Renshaw is projecting a net loss of $(4.7)MM for Quepasa Corporation

following the 2011 full year results at the end of February. Rodman & Renshaw explained, “We believe the current combination of myYearbook and Quepasa brands could be limiting the market's perception of what QPSA as a company could achieve. We believe, as brands, Quepasa may be perceived as having language / geography related limitations and myYearbook having user demographic/ age related limitations. We strongly feel that if management can recognize this issue and find a reasonable solution to remove this perception they will allow investors to view the story as having a universal appeal, which should help in gaining a better valuation.” Rodman & Renshaw maintains its Outperform rating and $7 PT on Quepasa, which closed Friday at $4.64.