Muscle Pharm Corporation (MSLPQ)

[jfk]

Closeouts are very expensive. The laundry list of ski's being discontinued have high immediate financial consequences. The retailers will want significant markdowns from MSLP to get rid of them at the stores, or they will insist that MSLP take them back, immediately. Either way, all that inventory has a 50% to 100% markdown or cost return. Huge, huge, cost for current quarter, and maybe into the new year. Add that to the current massive losses…In addition to that, they now lose shelf space, market share, and retailer confidence. They really did not have a choice, but their situation becomes that much worse for the near-term. Sales will go down at a quickening rate, costs going in the opposite direction. They will need to keep balance of the items supported with even higher marketing budgets just to keep retailers comfortable with adequate product turns. This is a nail-biter for survival until YE 2016. Within next 3 months we go into penny territory, sub-$1. I believe within 6-12 months this is sold.