Mesa Home Resources Inc (MHRE)

[greenzsky]

MUST READ !! repost!!!

Posted by: vantillian Date: Sunday, April 26, 2009 11:28:46 PM
In reply to: jimmybob who wrote msg# 4736 Post # of 7048

***UPDATED Due Diligence Summary***

I would like to try and explain the top reasons why FTCH has been drawing some well-deserved attention lately. There are several informed reasons provided below and I want to encourage other posters to ask questions or make comments about ANYTHING. There is nothing to hide with these guys and this company because they are the real deal, doing precisely what it takes to make a very real and profitable go of their BUSINESS.

--$--The REASONS--$--

--$-- F3 Technologies has been in the research and development phase for several years. It has not always existed as a publicly traded company. They reverse merged in mid 2008 into AUMN and then the ticker changed to FTCH late in 2008. So this is a relatively new play that hasn't even really hit the map of the investor world yet. I think I speak for several other big shareholders here when I say we think we're in on the ground floor of something very special.

--$-- They have 3 products designed to generate revenue. Ascend Global, Interaction Community System, and FargoTube. Currently, the Interaction Community System is NOT in the research and development stage and is being marketed aggressively and SUCCESSFULLY across the nation.

--$-- The Interaction Community System (http://www.interactioncs.com ) is a cutting edge Software as a Service (SaaS) product designed for community groups...in particular HOAs. THIS IS THE RIGHT-NOW REVENUE GENERATING PRODUCT THAT HAS MANY OF US ABSOLUTELY JAZZED For more details about the Interaction CS, try here: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=37307645 and here: http://investorshub.advfn.com/boards/replies.aspx?msg=37307752
(I *REALLY* encourage anyone planning to invest here to do the due on this system. It is kick butt awesome and I believe it is going to make these guys multi-millionaires.)

--$-- Ad based V Fee based revenues. HOAs can opt for one or the other...making it accessible to any HOA. This is simply brilliant IMO. What this means is if an HOA wants to simply try this out...they can do it for FREE while F3 realizes REVENUES THROUGH ADS! Here is a recent PR explaining how they generate revenues through each scenario: http://finance.yahoo.com/news/F3-Technologies-Unveils-the-iw-14880054.html

--$-- The Coastal Publishing contract deal is HUGE. http://finance.yahoo.com/news/F3-Technologies-Signs-Major-iw-14984684.html . This deal gives them potential to have an automatic footprint in about 15,000 homes in Southern Florida, a land rich in HOAs. It is through this deal that Connor predicted full company profitability. But it get's better...

--$-- I recently had a telephone call with Robert Rico, the arbiter of the F3 + Coastal deal, about the deal. He is completely jazzed because he is in the mortgage/title business and works with HOAs and HOA members all the time. He has bazillions of connections in the HOA realm because of his business, and he believes the Interaction CS is going to become a standard fare tool used by HOAs. He told me on this call that the numbers that Coastal gave to Frank were based on ad-revenue projections from the DADE county area only and yet it was these numbers that Frank made the full profitability prediction. Understand though that Coastal has a much much larger footprint than just the Dade County area!!!! This got me entirely excited...which I think is still pretty obvious. LOL

--$-- One more thing about Coastal. These guys have been making serious dough over the years through HARD COPY HOA newsletters with ads. They did the newsletters for free and made their money through the ADS. Folks, they have been doing this for several years successfully and have established relationships with hundreds (if not thousands) of ADVERTISERS. Now...how do you think these advertisers will respond/are responding as Coastal works to transition the ads from HARDCOPY to ELECTRONIC via the F3 Interaction CS? HUGE. HUGE. HUGE.

--$-- HOA stats. Folks, it does appear that F3 is targeting a significant market that has significant demand. In fact, it is a very large market with big dollars to spend and very little saturation. The kind of product F3 is offering through Interaction to these HOAs is superior to what is currently out there, it is cutting edge, and it is cost effective. Here is some due diligence regarding HOAs here in the states: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=37043856&txt2find=HOAs

--$-- SaaS companies boast up to 80% profit margins and SaaS is getting HUGER every week. All of F3's products are Software as a Service products (SaaS). SaaS is the next really big thing. Check out salesforce.com if you don't believe me (they boast a 79% profit margin!!) Check out all the different tools you use online... gmail, hotmail, plaxo, etc, etc, etc. Everything that we do that makes us productive through communication is MOVING TO ONLINE SERVICES. You don't need to download and install squat. You get on your internet browser and login. There are so many advantages to SaaS...you can use it on any machine with an internet connection, you never have to worry about upgrades (it happens automatically), you never have to worry about reinstalling or uninstalling something. SaaS is a beautiful thing indeed, and I highly recommend all investors check it out...not just for the sake of this stock...but for the sake of that market sector. With those kind of insane profit margins...it is WISE to have some money in SaaS stocks.

--$-- These guys have been extremely responsible with the share structure. It's 47M o/s and 17.5M float. This is a beautiful share structure. When you compare it to some of these crazy pinkies out there with nothing but creative PR writers...it is pure HEAVEN!

--$-- Ascend Global Business Solution is a CRM like Saleforce.com. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=37322859&txt2find=salesforce In talking with IR, they believe that Ascend will quickly overshadow the revenue generating ability of Interaction once they enter into the marketing phase with it. According to a recent video conference, they are planning to enter this marketing phase later this year. So...if you only took into account the Interaction service of F3, this would still be a fantastic investment opportunity, but when you factor in the potential of Ascend and then later FargoTube...it starts to become absolutely MEGA.

--$-- The monthly burn rate here is razor thin. F3 is fully operational on a budget of LESS THAN $10K per month. This is not to say it will not increase as the business grows, but right now they are being responsible, working the long hours, and taking meager pay because they (especially Frank Connor) believe they have the right plan and right products to succeed. I've looked through the filings and I like what I see...no fat paychecks to management. They are stretching every dollar here and that makes me as a shareholder believe they'll continue to be responsible with the share structure here. If they have a razor thin burn rate, that means they will be covering that through revenues generated through their products...not the selling of paper.

--$-- Progress Progress Progress!!! These guys have been increasing their footprint across the U.S. Just take a quick look through some of the recent PRs to see the deals they are sealing across the nation...getting their services IN and generating $$$ for the company: http://finance.yahoo.com/q?s=FTCH.PK

--$-- The Interaction CS TOOL is COOL, FAST, and COMPLETE! Interaction really rocks. Check it out. Kick the tires a bit. Please note they are not RESELLERS of this tool/software. This is their baby and they hold all the rights to it. It is Facebook on Steroids for HOAs. Period. Here is a demo: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=37272895&txt2find=demo

--$-- Transparency Transparency Transparency!!! F3 has recently updated its Pinksheet filings and is in the process of attaining the high "transparent" category rating that Pinksheet gives. Recent PRs and video conferences show a commitment on their part to be transparent with investors. I *really* like that.

--$-- Conservative PPS valuation puts this much MUCH higher than where it is currently trading. See this excellent post by jimmybob: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=37323245

--$-- You take all the above into consideration and one word comes to the forefront of my mind: POTENTIAL. F3 has proven they have POTENTIAL and have proven they have what it takes to capitalize on it. P-O-T-E-N-T-I-A-L!!! And alot of it.

Phew. That's alot of stuff I just wrote.

I hope those of you new to the board will find this summary helpful. I know there's alot more than the reasons I provided above...but I hope this will be enough to generate some discussion!

My heart is in this one. I have spoken now numerous times with IR here and a few times with CEO Frank Connor. This isn't a hey-we-have-a-good-idea-that-might-work-if-we-get-enough-money company. This is a we-have-been-working-our-butt-off-and-now-it-is-beginning-to-pay-dividends company!!!

I know I've written a novel here...but I hope ya'll can see this ain't a one or two day momo play for me (and others). These guys have some meat here. Let's go FTCH!

There it is!

P.S. Here is another solid DD compilation post by another poster: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=36835525