Potential Niche Growth Stock – Quepasa Corporation
Quepasa Corporation (QPSA) is a social networking company for the Hispanic community. With the growth of social media around the world, they have seen their revenues rise this past year. They went from $535,000 in revenues in 2009 to $6 million in 2010. That growth rate is very good. If they can keep going at this rate, they will do well. If you are looking for growth, this could be one of the best stocks to buy.
It looks like most of their traffic is coming from the Dominican Republic. The next in line is Paraguay, Colombia and Ecuador. I think if they are able to get penetration in the other Latin American countries, they should be in good shape.
The nice the thing about this stock is that it is cheap. It is trading at $3.71 a share. It is also a microcap stock with a market cap of only $125 million. That means they have a lot of room to grow. They are still losing money as a company, but their big revenue spike this year should bring some life back into the company.