Another Facebook sympathy play is Quepasa (QPSA), more or less the Spanish-language Facebook. This social media technology company's Latin-American platform, Quepasa, and North-American platform, myYearbook, enable users to meet new people through social games and apps, monetized through advertising and virtual currency. This stock is off to a decent start in 2012, with shares up 13%.
Quepasa has a market cap of $135 million and an enterprise value of $139 million. This stock trades at a cheap valuation, with a forward price-to-earnings of 8.67. Its estimated growth rate for this year is 102%, and for next year it's pegged at 4,200%. This is a heavily shorted stock since the current short interest as a percentage of the float is a whopping 23.6%.>>5 Stocks That Could Crush the Bears The way I would trade QPSA off the Facebook IPO is to look for long-biased trades if it breaks out above its 50-day moving average of $3.85 and then its 200-day moving average of $4.07 a share with high-volume. Look for a high-volume sustained move or close above those levels that are near or above its three-month average action of 522,344 shares. If we get that action once Facebook starts trading or after, then QPSA could easily explode to $5 a share or higher. I say "explode" because this stock is so heavily shorted and the float is so small at just 21.11 million shares. I would simply avoid any long trades in QPSA is it fails to trigger that move above the key moving averages with volume.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV