Mesa Home Resources Inc (MHRE)

[vantillian]

***AWESOME QUESTIONS gftb***

The product that has everyone really jazzed right now is the Interaction Community Software System. F3 has 3 products (Ascend, Interaction, and FargoTube). Interaction has been in R&D for the past 5 years and has only been in the "marketing phase" for a few months. But it has met with SIGNIFICANT success and acceptance rates among HOAs.

The Interaction system can work for any community, but the real revenue-generating communities for now are HOAs. An HOA is a "Home Owners Association" and there are about 400,000 of them here in the U.S. Many of us on the board are part of HOAs or have been part of HOAs. Most HOAs depend upon a hard copy flyer or newsletter to communicate with their members. This is getting more and more ineffective because of the effort/cost involved with printing/copying/mailing/etc. And Americans get way too much junk mail as it is so many times these flyers go into the circular file.

HOAs need a 21st century solution to help aid profitable communication...member to member communication and member to HOA managmenet communication.

Many times HOAs need to get out an alert to all their members quickly. Interaction is the solution.

Many times HOAs need to pass along information BEFORE they can publish it in

HOAs need a good way to remind people of their dues and an EASY WAY TO COLLECT THEIR DUES ELECTRONICALLY.

Interaction is really an all-in-one communication system solution for HOAs. And its just flat out cool too!

This is original stuff with F3. They are NOT resellers. This is THEIR technology that they have developed. And it is flat out lean and fast and COMPLETE. Check the sticky to give it a demo whirl. I've emailed to the CEO that it would be great if he would build F3 investors their own community so they could really kick the tires of the software a bit. It has a Facebook feel to it, but it is MUCH MUCH faster than facebook.

As far as revenues, they have two models with the Interaction. #1. They have a fee-based model where the HOAs pay them a fee to use the software, a monthly community fee, and then a per user fee. #2. They have an ad-based model where an HOA can use the system for FREE. Hello!! But because of ad revenue generated, F3 realizes just as much (if not more) than scenario #1. This is a brilliant marketing plan IMO.

In talking with IR, I believe that it is F3's plan to become fully profitable through the Interaction Community System service and then begin aggressively marketing Ascend...then Fargo. As far as greatest dollar generating potential, Ascend is probably at the top of the list. But I think if F3 *ONLY* developed and sold Interaction, the potential and progress here is STILL monster.

Based on a recent contract (see latest PR), profitability of their company ONLY THROUGH INTERACTION is right around the corner!!! Remember...these guys have a razor thin burn rate (less than 10Kmo) and monster profit margins with their services. Think about it...no need for expensive Inventory! No shipping/handling! No need to house inventory! Software as a Service (SaaS) boasts profit margins as high as 80% in some instances. Salesforce.com boasts a 79% profit margin!!!!

So...these guys are the REAL DEAL. They are already raking in LEGIT revenues from their Interaction service. They have proven they have what it takes to operate on a shoestring budget (i.e. no big fat paychecks for management) to stretch their dollars. Look at the vast majority of pinky plays out there. Do they have real products that are currently generating revenues? Do they have responsible management that has refused to raise much (if any) monies until their stock trades significantly higher? Have they been responsible concerning the share structure? Have they communicated a solid, tangible, workable business plan to investors? These are all vital questions and I believe with F3 we can answer all of those questions in a way that is favorable to shareholders.

All in all, these guys are doing things RIGHT and as long as they continue to do so...it is my opinion that no other pinky play offers as much potential for true success. I plan to cheer about these guys for many more months/years to come. There it is. I'm out most of today but I wanted to share my thoughts seeing we have some new eyeballs on this one going into next week.