Friendfinder Network IPO in 2011?

Since I’m on the dating/sex industry kick with STVI and QPSA, thought I’d look back into Friendfinder.com. Found this article below, looks like they are gearing up for an IPO. FF was one of the earliest players in the market. Rumors last year about an IPO was exciting, now with the APP driven models and mobile competition, I’m not sure what to think about Friend Finder. With my basic understanding (as I learn how to do my due diligence) they plan to pay off $27 million in debt. How does a company with $224 million in revenue, a digital product rack up that much debt?

Article source: Rafat Ali Twitter @rafatali
Jan 10, 2010 11:27 PM ET
Adult entertainment company Friendfinder Networks is finding the going tough in a recessionary market, much like the rest of the industry and has rest its expectations: after filing for an IPO exactly a year ago and hoping to raise $460 million in it, it has now filed an amended S-1 that cuts its ambitions in half: it is now hoping to sell 20 million shares for $10 to $12, which at midpoint would raise about $220 million. Underwriters, led by RenCap and Ledgemont Capital Markets, have an option to buy about 3 million shares. It plans to list on NYSE under the symbol “FFN”.

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When it announced the IPO a year ago, most fo the supposed $460 million raised money was supposed to be used to pay down its debt, related to its $500 million purchase of AdultFriendFinder.com parent Various Inc. in late 2007. It still has about $433 million in outstanding debt on that acquisition, according to this latest verion of S-1. The new IPO amount will, in part, be used to pay a portion of that debt. For the first nine months of 2009, it had revenues of $244.44 million, down a bit from $243.88 million in the comparable period a year ago, while net loss for the period decreased to $27.4 million, down from $32.34 million in the year ago period.

The chart below gives a good overview of FFN’s revenue spread across its portfolio, but a bit all over the map so hard to pin down a trend. Click for a the full chart:

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Recession Good For Adult Business? Penthouse-Owner FriendFinder Files For $460M IPO

Quepasa.com & Zoosk.com – is it another STVI?

Doing my due diligence on QPSA.OB. It’s a spanish dating site that has an increase in membership by 255% in 2010. In May of 2010 they had 13 million members. Quepasa.com. I found Quepasa while researching zoosk.com who seems to keep popping up on my iphone while playing words with friends and various other games. Turns out Quepasa (QPSA.OB) launched zoosk to reach the english speaking market.

QUEPASA CORPORATION (OTC BB: QPSA.OB )
Last Trade: 11.35
Trade Time: 1:57PM EST
Change: 0.72 (5.97%)
Prev Close: 12.07
Open: 12.07
Bid: 11.27 x 200
Ask: 11.35 x 200
1y Target Est: 16.00
Day’s Range: 10.50 – 12.21
52wk Range: 2.08 – 13.70
Volume: 623,219
Avg Vol (3m): 99,366
Market Cap: 152.90M
P/E (ttm): N/A
EPS (ttm): -0.59
Div & Yield: N/A (N/A)

http://finance.yahoo.com/q;_ylt=AnsiyTcwL9X6hDWdugQXhRitcq9_;_ylu=X3oDMTB1MGZpc3ZiBHBvcwMxBHNlYwNuZXdzYXJzdGFydARzbGsDcXBzYQ–?s=qpsa.ob

Areyouinterested.com (STVI) is paying my rent this month

I forget what lead me to buy STVI over a year ago, I think I was researching the news about “find singles in your area” going public and found them. Anyhow, 2011 has started out with a bang as my $0.24 stock purchase has jumped to $2.60 (1/6/2011).

Yahoo Finance Article:
Stock Of Facebook Sex-App Maker SNAP Interactive Soars On Blowout Quarter

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Companies:SNAP INTERACTIVE
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Symbol Price Change
STVI.OB 2.60 +0.65

Henry Blodget, On Thursday January 6, 2011, 12:02 pm EST
Two weeks ago, we told you about the stock of a company called SNAP Interactive that makes a dating app for Facebook and other social networks called areyouinterested.

Three weeks ago, the stock was trading at 18 cents a share. Two weeks ago, it was trading at $1.20. Now it’s trading at $2.80.

Why?

Because there’s actually a real company hidden under there!

The company’s revenue jumped from $1.7 million in Q3 to $2.7 million in Q4, thanks to strong growth in app installs. Thanks to the company’s subscription accounting, cash flow was even better.

(Unfortunately, the company is still acting like a penny-stock company and pumping out triumphant press releases before they’ve even assembled their full financial results, so we don’t know yet what the bottom line or balance sheet looked like in Q4. But they looked okay in Q3.)

Based on the feedback we got when we first wrote about SNAP (see comments), the major concern with the company is that their product feels spammy and, therefore, that the huge growth in “installs” may be a function of people having no idea what they’re downloading and then never using it. But the fact that at least some people are paying for the product seems encouraging.

If anyone has actually used the areyouinterested.com app–and, better yet, paid for the service–we’d be grateful if you would share your thoughts below.

In the meantime, with the stock at $2.80, SNAP’s market capitalization has jumped to nearly $100 million, so the stock is no longer cheap. If the company’s growth rate stays this steep, however, the company’s value could continue to jump from here.