Muscle Pharm Corporation (MSLPQ)

[StocksAnonymous]

- They gave guidance in the $210-$220 million range on Q1 conference call.
- Q1 Revenue was $41.3 million.

This tells me they need to average $56.23 million/quarter just to make it to the bottom end of their guidance. I agree with you, as I just don't see how they are going to do $56 million this quarter with all of the supply issues, but I am currently holding as I do not think the huge downside/risk of bankrupty is still an issue. I think it's now more an issue of how do they ever transition to profitability. I will say there seems to have been less sales/promos over the past quarter than we were previously seeing. I am hoping this has to do with their effort to raise ASP and increase margins. I'd much rather see them do a $40 million quarter at 40%+ margins than $50 million at 30% margin.

What worries me at this point is that they may be getting to about the average size that a company in their sector gets to before their revenue growth slows considerably and they get bought out in an attempt to squeeze profits out of the brand.