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Cody, did you see the latest lawsuit filed against MSLP?
https://www.sec.gov/Archives/edgar/data/1415684/000119312518257804/d614646dsc13da.htm
Saw this info in their last call, but Combat Crunch bars are sold in Wegmans (northeast guy here). Good news, the CC Cookie Dough was delicious. Bad news, individual bars priced at 2.79...higher price point than Chef Irvine's Fit Crunch and significantly smaller in size compared to that one as well.
Setting up for a crash. Volume is drying up as price increases. People aren’t chasing anymore. The takeout price is still .85 but won’t happen with the insiders holding shares at elevated prices.
A paltry 10K shares a day isn't much of a head turner.
Wow this is a nice run and traded well above my buyout target of $0.85. Will it continue?
The combined new fund owns 3 million shares.. Don’t you think that is deserving of a board seat at least?
Gold bond, you’re such a glass is half empty type of guy. Let us have this one day . Just this one . You’ve had the last 3 years ...
What?
Buck Wessell just sold hundreds of thousands of his 2 million shares for $1.00 to a hedgie according to last weeks filing. Buck paid over $2.xx for the shares he just sold for $1.00
Buck and the hedgie own 19.xx% of the outstanding but still have zero influence due to the convertible and collateralized debt by CEO Ryan.
This movement today is just sucker bait.
So why does an exec with a track record of zero concern for promoting the company as an investment vehicle (as evidenced by the total lack of promotion and anemic daily volume) bother to attend LD Micro? Do they give away killer schwag for the participants or something?
I'm sure Brad will take whatever money you are willing to give him.
The daily volume is laughable. There are between 1 and 50 shares traded daily...not 1 to 50 million or even thousand...just 1 to 50 shares. Why puts an order in for 1 share at 68 cents?
I’d much rather invest in TruWomen than MusclePharm at this point. Brad has the marketing know-how to at least gain some attention for the company which did result in some nice gains for investors in the past (assuming you got in and out at the right times). MusclePharm is just dying a slow death. Brad is bringing back products that could have been a huge success for MP - apparel and energy drinks. MP did both of these well but dropped them on the SKU shuffle and downsizing once Brad left. The energy drinks were the best I’ve ever tasted and could have cornered the athletic market since most other energy drinks are just targeted at tired adults and 16 year old boys playing video games.
codie
Re-hire the nanny and get me NetJets on the phone quick! I'm back!
No trades today.. is this getting delisted anyone have an idea?
God help us. Brad Pyatt in the driver's seat at another company.
I will give him this. He was (and presumably is) a marketing genius. Can't run a company for $hit though. Well..............he's a master at running it into the ground. But that's it. It's a pity. MSLP could have been a life changing company for so many investors. But Brad and company seem hell bent on destroying everything while lining their own pockets with investors money.
Buyer beware.
Brad's new scam. Some of you suckers might want to invest in Brad again. He's already planning on going public.
https://businessden.com/2018/05/24/former-musclepharm-ceo-prepping-product-line-for-women/?utm_source=BusinessDen+Daily+NewsFeed&utm_campaign=e721b3503f-EMAIL_CAMPAIGN_2018_05_24&utm_medium=email&utm_term=0_e8b1506f0c-e721b3503f-148123577
Buyout?
One day after Q1 reporting and 2 shares trade. Yep, Total trading value of $1.50....that is 15 shiny dimes for an entire trading session immediately after Quarterly Reporting. This is dead. Literally....
Accounts Payable delta went up $3m+ this Q and yet Accounts Receivable stayed even. MSLP has stopped paying suppliers AGAIN as they only have $300K left in working capital and almost $8m outstanding in borrowings from Prestige and Crossroads at shylock terms.
Drexler can't sell as he has invested over $26m in cash personally ($8m original open market for 1.4m shares and $18m in cash infusions convertibles to cover operating losses) and the company is still losing $1m a month, $3m a quarter.
Remember this despite stealing over $11m from former supplier Capstone when MSLP refused to pay the $22.5m in outstanding AP to the manufacturer and was able to settle for $11m. MSLP is posting real cash losses of $15m-$20m annually and has borrowed $26m since Ryan displaced CEO Brad in short term borrowings @ 12%-20% interest to cover the operating losses. MSLP accrued over $1.3m in interest in Q1 in addition to EBITDA losses
Remember Q1 is always the biggest revenue Q as New Year Resolutions for fitness drive inventory load. Historically, MSLP Q1 rev doubles over Q4 yet this year....it's flat.
MSLP owes Manchester City Footy another $1m payment for the legal settlement in less than 60 days.
There will be no buyout as Wynnefield owns 10% of the total shares and they are in at ~$5 a share after already realizing over -$9m in losses on previous sales.
Amerop owns ~17% of the total shares and Buck is in at over $2 a share.
Ryan is in over $5 a share in cash and controls well over 50% of the diluted.
The company has ~$50m in debt and no assets unpledged as Ryan has borrowed against everything but the wresting mats.
It will go into bankruptcy and Ryan will foreclose on the notes in a take UNDER not over. The bulls here have no financial acumen nor sophistication. Neither does the trust fund baby CEO.
Investors are at fault for some of the losses they took years ago - including myself. The company was so early in revenue that an investment was unwise at the time. The company was operating well in regards to revenue and customer recognition but failed to control expenses and appropriate corporate governance. Now they are intentionally reduced revenue which has dug a hole and they need to execute perfectly to survive independently. I agree the company is advertising themselves for sale. Drexler wants to dump the company. I don’t know that it will happen because I think 85 cents is the top end of a buyout right now. Maybe in a couple quarters with more expense cuts and leveling off revenues we might get $1.15 - 1.35. I think a $3.00 target is so far off from value right now.
In my opinion the investor road show that they’re going to present at is an attempt to get an attractive tender offer for a buyout. I think Drexler would take one times sales without hesitation. Fully diluted is around $3.00 a share. That triples his money, plus he has all the other money he’s raped away from the company while acting as the failing CEO. If this knucklehead would put aside the greed for a second and publicly announce that he’s killing his salary until he rights the ship, at least then investors would see he’s doing his part. Look at how much people praised Donald Trump for not taking a salary while in office...I think it’s fing laughable but many Trump supporters clung to that statement thinking that he was really acting for the people. MSLP has been raped and pillaged since inception.
My takeaway from the quarterly report - Drexler is both the hero and the villain here. Revenues have stabilized with a nice move lower in COGS. The inventory build I would question. It may be acceptable as the new product lines ramp but I would expect the increase to be from a lower base.
Drexler’s conversion at $1.11 put a very low cap on the share price. He must know this thing will never succeed and I would expect will dump shares if any positive news can boost the share price even moderately above his conversation price.
I do have hope the company can at least survive a while longer with the stability in revenues now. The apparel rights should be written down to zero because they hold no value any longer. Without the sponsorships I don’t see many consumers interested in wearing MP branded apparel. They need to do something to boost brand recognition and give consumers a reason to wear MP gear again. Without that the intangibles are worthless.
Cash seems to be at a manageable level for at least the rest of 2018. Drexler offers to make an additional investment into the company in the quarterly but that will be dilutive once again and be at an even lower conversion rate. I would expect the new interest rate to near 15% and convert around 85 cents. Watch out for further disclosures on new related party notes later in 2018.
Wow great move today on stellar volume! Go $MSLP
First quarter earnings are coming
It is either going to .02 or $5.00 - just depends on managements commitment to shareholder value and the market accepting their new products more than anticipated. I am in the 2 cent boat - the company is broken and so is the stock. I am one of the original shareholders back from 2008. I want to see the company succeed more than anyone. I have MP clothing, MP gym bag, stickers on my truck, multiple products so I’m not just some basher. I want this company to dominate the industry because they make quality products that taste great and really work. The company lost it’s first mover advantage to mainstreaming supplements for the casual athlete. Their tie-up with UFC could have really helped since they were a major sponsor before UFC was popular so the contract was very advantageous for MP.
I can verify the formula has been fixed back to the original formula however there is probably excess inventory making its way on Amazon
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?
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