Replies to post #1241 on Meet Group Inc (MEET)

[Chance To See]

Hello ian. Thanks for your response.

You write

I won't blast you as nothing you have said is false.

Why would anyone even consider “blasting” me? I’m simply expressing my disappointment and dismay that the company uses facts in a way that I consider inappropriate.

You write

My guess is these, "related party" transactions are used as proof of concept to sign up additional campaigns with "unrelated parties".

I agree with you. That is surely one of the major purposes. This is what I wrote in my post # 474 in September:

I think Quepasa will be a tremendous investment, but there’s one thing that’s really bugging me. And now the Liolios Group has come right out of the gate repeating the same error.

In the PR Liolios says, “This is also increasingly attracting advertisers to the company's new distributed social media platform, Quepasa DSM. Introduced less than a year ago, Quepasa DSM has secured ad campaigns totaling more than $7.3 million so far this year, up from $800,000 the company announced in March."

The fact is, as clearly stated in the 10Q’s, that all of this (including the Acapulco, Cozumel, and Ixtapa campaigns) was paid for by Ancira through AHMSA and Matt Inc.

It is a huge positive that the company has a wealthy patron willing to get the company established and growing with minimal dilution.
This funding method
-- gets money into the company without dilution
-- funds improvements to the company’s DSM platform
-- shows potential advertisers DSM's strength as an advertising method
-- benefits Mr. Ancira (and hopefully Mexico) through promoting his causes

But these related party transactions cannot be presented as DSM “increasingly attracting advertisers.” IMO this is turning a positive into a negative. The company has to be reasonably upfront about this. If they don't want to specifically state the source in a press release, then at least don't trumpet it as "attracting advertisers."

You wrote

My guess is we will have a major DSM reseller agreement signed by year end with a non affiliated party.

I hope you’re right. I don’t know why we haven’t seen more DSM campaigns - or at least announcements of actual customers - already. It sounds like a tremendous product to me.

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As I keep saying, the company seems to be doing well. My argument is not with the facts, but with how they are used.