Again, there is no evidence that they have built a $200m+ business yet.
Musclepharm not reach past levels of revenues in Q1, inventory levels were low at the end of Q1 and it was struggling filling in orders in the beginning of the current Q2.
Now Fall and Winter seasons are approaching, meaning seasonally weaker sales than for Spring and for Summer for the industry at large. Furthermore, the strength of the US versus the Canadian dollar, the Euro and the Brazilian real should continue to make the International sales challenging.
The loss of exposure through UFC going forward could hurt sales, the loss by the Cavaliers in the Finals could limit the worth of that sponsorship, and Tiger Woods' continuing weakness makes it hard to imagine that Musclepharm will capitalize to the fullest on that endorsement.
However, Colin Kaepernick and Arnold Schwarzenegger remain to be positive drivers for brand, and Bill Phillips might as well down the road.
There are opportunities ahead, but many of them might be associated with further dilutive financing as mentioned by Wynnefield.
I'm not so sure that it is just a matter of investors and creditors having unrealistic expections, the company has not delivered particularly good results over the last 3 quarters imo...it is what it is! Wynnefield Capital, ANB and the lender that sent the Ceo a margin call, forcing him to sell his pledged shares....they all acted on the hard numbers they were presented.
Whenever the market, stakeholders are presented some good numbers, then they may change their opinion about the company a whole lot more easily than without such good numbers
