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I wouldn’t pay that Clown either.
I thought his sponsorship was entirely options this kind of pisses me off that he had guaranteed money
Ryan owes another $1m payment on another losing legal settlement in 60 days to Manchester City Footy too.
They continue to borrow Million$$$ every 90 days to fund operating losses
They continue to post margin constriction despite expenses being cut (another -20% decrease in employees) meaning heavy discounting increases Q over Q.
$3m Credit Line against Inventory from Crossroads is fully tapped this Q (was $0 last Q). Additional $2m was borrowed against AR from Prestige this Q.
$5m of additional borrowings was necessary this Q to stay afloat.
MSLP now has $26m+ in collateralized debt against assets not counting $8m in past due debt to partners and vendors and $$$$ more in Accounts Payable.
MSLP has $50m in debt and is clearly upside down and posting massive losses with their revolving door CFOs.
There are a few positives you can dig up.
- little to no dilution lately
- they seem to have stabilized in terms of revenue
- their popular product ‘combat crunch’ is back at its original formula
It could be the bottom in terms of PPS. If Drexler can dig out of this hole.
There isn't.
The current CEO/Chairman initially had a 'sale bonus' in his contract with a target acquisition price of ~14 per share (somewhere around $200MM at the time). His newly negotiated agreement is in the $1.50 range (after he converts the debt he holds). This alone tells you management does not believe that the company has a legitimate shot at valuation substantially in excess of $50MM.
Can anyone tell me why the stock will get back to $14.20? I’d like to hear people’s positive views on the company rather than arguing about what price someone executed a trade at 5 years ago.
It ran to 14.20 post reverse split but the lowest it got to was about $4. That was when Phillip frost got involved .
Yes riding it down from 14.20 to 0.60 has been awful .
Nope you guys are right - I must have imagines this thing running to $14.20.
And I now expect General Mills or Abbot to buy them for $15 a share since the majority owners will demand that price.
I already have my orders placed for Monday morning. I’m all in but sure glad I didn’t ride then from $14.20 to $.50
Over 80% of the total shares are held by three entities; Consac, Amerop and Wynnefield
It ain't gettin' sold for a few quarters and a dime as Consac holds majority controlling interest and convertible collateralized debt.
Care to address codie's point on the 850:1 reverse split or do you wish to continue your hilarious fantasy profits?
What’s up guys !! Who wants to make some money here ?
Everyone has gotten killed in this one the past few years. Had to bail when it hit $14.20 or within a couple dollars of that top. Every initiative since 2014 has failed and the company is accelerating downward now. I sold my last shares at $1.50 and at that time began posting everywhere I could that people had to jump ship. I was over optimistic since my initial target when it was at $1,.50 was $0.65. We crossed that threshold and now bid is .30 and moving lower. There should be a stopping point for the drop because they still do have some agreements in place with Kroger, Costco and BodyBuilding.com.
If there are able to issue some positive news on a semi-regular basis there could be a slowing of the decline and eventually put a floor under the stock. I think it is worth .65 - .85 with the most recent information available. It is possible that things are worse than reported which could change these targets. A buyer should step in and turn this thing around at those levels. Given the pressure today someone might be able to buy this thing for half of that amount. There is some value left in the name and product loyalty. Now is the time we have to establish what that value might be.
Just like Wynnefield where you can track their real time MSLP performance via the 2013 purchase of 1,000,000 shares at $9.2m in their 13F filings
They hold 1.3m shares worth $800K as of March 31, 2018
Down over 90% and they are liquidating after averaging down like many here claimed to do as well.
https://whalewisdom.com/filer/wynnefield-capital-inc#tabholdings_tab_link
And if you held on to your position like a large number of people on here, that $10,000 investment you made in Musclepharm is worth $10.62 today.
codie,
Mikey is using turok and brichnyc math. The fantasy math is never in real time.
At no time did this stock go from .65 to $12 a share without factoring in the 1 to 850 reverse split. The stock was trading at 0.0054 before the split and $4.59 after.
After the split, it never went down to 0.65 and then back up to $12. So if you bought at 0.65 and it went to $12, you had to have bought it before the reverse split then you road it down to 0.0054 and suffered the reverse split and then held it as it went up to $12. But if you did that, every 850 shares you bought at 0.65 were converted to 1 share.
So if you bought $10,000 worth at 0.65 that would be 15348 shares (10000 / 0.65). If you then road it down to the split that would have converted to 18 (15348 / 850) shares. Then, if you held those 18 shares until $12 the would have been worth $216 (18 x 12).
So you turned $10,000 into $216.
If you can show me I am wrong here please do.
I bought shares at .65 and sold them around $12 a share. If you look at a 5 year chart or listing of 5 year highs and lows you will see it traded at $14.20 within the past 5 years.
The company did actually post a couple profitable quarters back in 2013-14.
Sounds like you’re new to MSLP and haven’t been around back when it was a successful stock...I can’t say a successful company because it has had a lot of problems. But at one point the stock was the best performer in my portfolio. I sold some at $12 but then held until it got down to $1.50 and sold the rest.
What are you talking about?
This company has never shown a profit. Ever! It has never been "firing on all cylinders". It has always been on the brink of disaster.
It never went from .65 to 12. Ever!
It's like you don't even keep up with Musclepharm at all.
I question whether Drexler's ego would let him dump his position at .85. He has demonstrated a marked tendency to run this company as his private fiefdom, with little to no regard for supporting or increasing shareholder value. Instead, I foresee one of three outcomes:
1) PPS increases to the point where a buyer swoops in at something above the $50MM level that gets Drexler his transaction bonus (this is only a bit over $1.55/share if Drexler converts);
2) PPS continues do drop, Drexler continues to try to recoup his investment through interest payments/salary/performance bonuses until the well runs dry and the company BKs; or
3) The company continues to be mismanaged, PPS flounders, shareholders realize that they're never going to strike it rich. Finally, Drexler decides to swoop in and make a tender offer himself (likely somewhere in the .65 to .85 range), takes the company private, and either manages to find a buyer or runs it into the ground.
If I had to wager, I'd say option 3 is the most likely based solely on Drexler's greed and excessive self confidence.
I first invested in MSLP when the company first went public. I had tried a couple of their products and found them to be a better offering than many nasty tasting products from other companies. I did some research but the company was too early in development to be public and the stock was crushed.
Fast forward a few years and I bought a lot of shares around .65 and rode them all the way up to $12.00 before starting to trim my position. The company was firing on all cylinders and had finally caught the attention of the larger investment community. They were turning a profit per the financials at that time. The hype in the stock died down, financials fell apart and original management team left. It seemed a more experienced and professional management team was brought in to finish the turnaround. However, product lines were cut, sponsorship approach was changed and the focus on profitability was gone.
I do like the newer organic and grass-fed offerings from MP but the damage has already been done to the company and stock. The energy drink had the potential to be the number one product for the company and generate some major profits and customer visibility opportunities.
I have had a .65 price target on the stock for the past year and we are nearly there. I expect MP will be a takeout target once it gets to that level. Someone could buy it and try to make it more mainstream with distribution. They do have deals in place still with Kroger and Costco. A larger player could leverage distribution channels to expand sales and better deal with margin compression to increase sales. Without a deal the company will drop to .65 and should continue on a path lower. They are not viable as a standalone public company any longer. It is very sad to see this once good (can’t say great) company sink to these levels. Eventually it could be a sub-penny stock and move on puff piece PRs. I expect a buyout could occur around .85 a share once the current price drops further. Clorox has shown interest in consumable products the past few years with their purchases of Burt’s Bees and Rainbow vitamins. MP would be a nice addition and is mainstream enough to fit well in their portfolio without being too focused on niche musclebuilding community only.
Domestic Sales continue to get crushed by -30% with no end in sight. Remember several Q's ago, when the trust fund baby said in the conference call that revs had stabilized and would begin ramping up?
Well, that wasn't accurate, was it? Even foreign sales are down >-10% and will likely decline further with the weakening USD environment again that is driving up input costs and pressuring margins even further to new record low 30% gross profit level. CEO Brad looks like Warren Buffet when compared to the trust fund baby.
MSLP has $26.4m of debt currently at interest rates ranging from 12%-20% per annum. Think about that.....Over $4m a year in debt interest without a single $1 in principal paydown. This makes payday loan companies blush. Oh, by the way.....MSLP borrowing is still increasing exponentially as it is the only funding source of real cash operating losses that continue to explode.
$18m to the trust fund baby
$3m to Crossroads (fully tapped the secured credit line against Inventory)
$5.4m to Prestige (secured by Accounts Receivable)
***This does NOT include $7m in debt currently owed to Manchester City and other legal settlements that is past due.
That is $35m in current real debt.
MSLP has cut employees another -20% this period and has barely 50 on staff as revs continue to decline -30%. You can't cut your way to profitability as revs continue to decline faster than expenses.
Rent on the new Burbank facility is a half million $$ a year NOT counting cap ex on the wresting mats and equipment. Good thing MSLP has it's priorities straight. When you are losing $1m-$2m a month in real cash burn, you can't have enough wrestling mats, no?
OMG!
This is the savior of the company? Including the initial inventory channel load, only $1.5m is total sales in 3 full quarters in the Natural Line the cheerleaders said would drive MSLP to the Championship. CocoProtein Water did better than that and it's discontinued.
Yep!
Another key metric - their company saving natural line is a complete bust. It accounts for less than 1% of revenue. Most will expire unsold.
Their Fit Miss line is low single-digit of revenue.
Typical bad results surviving on limited credit.
They have the nerve to talk up their in-house gym. This has never been anything more than a playground for Brad and now Ryan. It is nothing but a liability for Musclepharm.
Just think, what is it 8 or 10 years now and Musclepharm has lost money, lots of money, every single quarter.
Window dressing only
MSLP borrowed and owes almost $6m to Prestige Financial in Q4 '17
AND another
$3m from Crossroads Financial in Q4 '17
MSLP borrowed over $9m in additional outstanding debt during Q4 '17 not counting anything from the Drexler loans yet only shows $6m in Cash on Hand.
Nice business model. Borrow $9m in Q4 to show a bank balance of $6m to investors to window dress the quarter.
Still racking up debt at an amazing Ponzi Scheme Rate. Wait until the collateral is called due and MSLP is forced to declare bankruptcy as the debt is all collateralized by 100% of the MSLP assets, including Accounts Receivable, Inventory and Cash on Hand.
There is only $3m in additional lending available under the LOC terms to Prestige as MSLP has borrowed 70% of the credit limit.
MusclePharm's (MSLP) CEO Ryan Drexler on Q4 2017 Results - Earnings Call Transcript:
https://seekingalpha.com/article/4159748-musclepharms-mslp-ceo-ryan-drexler-q4-2017-results-earnings-call-transcript?app=1&auth_param=3k42d:1dboaqv:d5c235384251e47621a3596100324a1b
Boy.............I gotta tell you.............I don’t have a clue. I was on the road and couldn’t get into the CC. More than that, I can’t find a thing about it. What a shame. This should have been a millionaire maker. Other than Brad I mean. This was a company that could have and should have changed peoples lives. The one thing I’ll give Brad is that he is a marketing genius. A horrible business man................and arguably a horrible man. Frankly, I can’t believe he’s avoided prison.
Not sure what to expect from the CC. My fear is that whatever they do..................the hole is just too deep to recover from. I hope I’m wrong. In any case, the nutrition market is brutal and already crowded with very good, well established competitors. Hopefully there’s news by tomorrow morning.
couldn't get on the call...would love to hear what your thoughts are.
Well.......................let's see what they have to say.
MusclePharm Corporation to Hold 2017 Fourth Quarter and Full Year Conference Call on March 28, 2018
Press Release | 03/22/2018
MusclePharm® Corporation (OTCQB: MSLP), a scientifically driven, performance-lifestyle sports nutrition company, will report financial results for the three and twelve months ended December 31, 2017 after market close on Wednesday, March 28, 2018. MusclePharm management will hold an investment community conference call at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss financial results and provide a company update.
Live Call: U.S. 800-608-8202
International 720-495-1913
Passcode 1285688
Live Webcast:
https://ir.musclepharmcorp.com/ir-calendar
The webcast will be archived for 90 days.
Also, I am a financial analyst, so as I am mocked I understand why. I do my dd
Kinda feel like the lack of communication might be a reflection of confidence and “we told you so, you’re welcome”?
It definitely helped with the average. Wasn’t too crazy about dropping more loot in but planning for an exit strategy. I bought all the way up to the .80’s
The silence with this company is deafening... hopefully it’s a sign of good things.
Wow . Nice buy! You gotta be almost even by now !
Yep. Nearly doubled my position Hoping it pays of
Make it rain!!!!! ????????
CC #1 protein bar on bb.com again and sitting at #23 overall best product.
Yep. Listened to it. He def shouted out MP. Actually dope podcast. Had no idea he overdosed on heroin.
Anyone catch the Matt brown (UFC fighter) on The Joe Rogan experience podcast talking about MP?
Well said and concur completely. Sadly but completely...
Arnold series were effectively loss leaders - they typically sold for negative margin.
MP neglected to pay Bakery Barn for crunch bars, resulting in lawsuits and counter-claims (claiming that MP received bad product) and MP moving to a new, inferior vendor. Now the band's back together, but the reputational damage is likely permanent.
The launch of the naturals series was a thud.
Protein is a commodity, but MP still wants to treat it as a premium product, resulting in steadily declining sales.
All in all, MP lost whatever momentum it gained by trimming fat, and is now completely rudderless - no real plan for increasing market share, becoming profitable, or producing anything approaching value for its shareholders. The fact that they didn't 8-k the renewed relationship with Bakery Barn (and return to the classic CC bars) tells you all you need to know about MP's focus on driving share price.
Should be on an upcoming episode of American greed
What happened to this compamy and its products ? What happened to the armold series .it had a couple of really good products and now barely see them at gnc.
Over diluted and low margin? Sounds like MSLP.
Creatine is the most over diluted and low margin category in dietary supplements. Not to mention there is a massive supply issue with creatine as of late causing massive spikes up in price.
Sorry to say, but a new shiny creatine label is far from this company’s saving grace.
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