Muscle Pharm Corporation (MSLPQ)

[MakeItRain88]

any positives here? Saw that Whole Foods is now stocking product. Walgreens brining in the Organic Bars as well. Think there is a chance they come out of this thriving down the road?

[Madcowelixir]

TJ Dillashaw just got KTFO by a 125lber. TJ then went on Joe Rogan podcast and his 10m+ listeners and talked about all his sponsors and business ventures. Know who he didn't mention? MusclePharm.

[Madcowelixir]

Hmm....Ryan et al barely won the officers election at the Shareholders meeting due to all the dissents from Amerop/White Winston/Wynnefield.

Now we see share volume and huge price decline. Did Ryan et al give up? A/WW/W could easily hold the majority position now and call for a special election. I haven't seen an update on the lawsuit on Pacer. Does A/WW/W still want to convert the Drex debt to shares? MSLP is nearing breakeven before the interest payments but the revenues still don't make sense.

There is no seasonality any longer so the revenue numbers look fake. Every Q 1-4 is ~$26m. Before the "restructured turnaround" Q1, Q2 were about 65% of the annual rev with Q4 the worst performer.

Current bid $.38

Current ask $.40

Way, way, way underwater for the convertibles or Muscle & Fitness $3m advert deal that converts at $3.xx

This deal defies logic.

[Madcowelixir]

Nice call Odessa99. "Only" down another 50% for you. Time to switch strategy to the George Costanza method.

Odessa99 Wednesday, 10/24/18 07:17:31 AM
Re: None
Post #
80217
of 80230
Welcome back, Neuronal. The chart is looking like a flag and pennant formation... might be due for a pop here.

As always, simply my opinion.

MSLP

[Madcowelixir]

Hey Neuronal

What happened to that nice insider buy at over $1.xx

You are now down 50% in just a couple weeks.

Good call

[MikeyInTheD]

2019 could be the year shares fall below .25 and stay there waiting for a buyout at .35 that I have been calling for over a year. That is the price we will see a takeout. Buying above that price is just asking for losses.

I was the biggest bull on MSLP since it’s inception through 2016. I had all the gym gear, apparel, supplements and even a sticker on my truck that took up the entire back window. The company lost its way and its core customer focus. There is nothing really left here but a couple decent supplements that lack any consumer awareness.

Management blew any goodwill built with shareholders during the couple good years for the share price. Volume and share price will continue to decrease through 2019.

[Madcowelixir]

More lawsuit fodder for MSLP

An independent lab bought retail and tested the Combat Crunch Bar that on the label shows 210 calories. Lab tests actually showed 306 calories.

The lab found lead as an ingredient. Combat Crunch is now likely to require a Prop 65 warning on the label declaring that CCB contains ingredients (lead) that have been show to cause cancer.

CCB also contains a high amount of sucralose, also known as Splenda, which was recently downgraded to “avoid” from “caution” by the Center for Science in the Public Interest, due to an animal study that found sucralose causes cancer.

[MikeyInTheD]

MP products appeal to no one at this point and have no customer awareness anymore. The hardcore athletes think MP products are a joke - this has been consensus for years. Average Joe’s think MP products are too expensive and aren’t available at average retailers where they could stumble upon them randomly at a decent price. So they aren’t high end and they aren’t cheap enough to appeal to the low end. They are kind of stuck in the middle. I personally have loved MP products since the company was first launched. I even had a huge green MP decal on my truck back window for years. Had the clothing, gym back, headphones, blend bottle. Now I don’t recognize the company anymore and don’t see how they get back to growth. The market has moved on and left MP in the past. I think investors should do the same. It could catch a short term bid but the trend will continue to be down. I think it’s a takeout target at .45 - .55 and will be taken private. A larger player isn’t likely to be the acquirer because they would be better starting fresh rather than trying to start a fitness brand with a tainted name like MP.

[Madcowelixir]

The fat lady is singing

Combat Crunch is down to retailing for just $1 a bar in a desperate attempt to create revenue as the company goes bust. Last Q rev was boosted by the Costco giveaway at a loss.

[Odessa99]

The average publicly traded company trades at about 1.4 times annual sales. Muscle Pharm, as beaten down as it is, currently trades at about .14 times annual sales (before any dilution to resolve the convertible debt). That is a 90% reduction from the average. While Muscle Pharm deserves to trade way below the avg publicly traded company (due to a long history bad mgmt decisions), a 90% reduction from the avg is probably a bit much. I fully expect an upward bounce from this level. And I expect that to occur sooner rather than later.

As always, simply my opinion.

MSLP

[Odessa99]

It is sometimes said that volume is the great truth serum. And with all of this trading volume, the current price must be telling the truth right?. As I stated before, I'd sure hate to be covering a significant short position in this low volume environment.

"And now the "ask" is down -20% from his recommendation. So much for the spread excuse, huh? Wynnefield is down double digit % on their new buy of 15K shares but what's new? Wynnefield is down over -90% on their $10m long position. Amerop is down -60% on their $5m+ long position. See a pattern? "

MSLP

[Madcowelixir]

Odes

And now the "ask" is down -20% from his recommendation. So much for the spread excuse, huh? Wynnefield is down double digit % on their new buy of 15K shares but what's new? Wynnefield is down over -90% on their $10m long position. Amerop is down -60% on their $5m+ long position. See a pattern?

[MikeyInTheD]

Finally falling back to Earth after the unwarranted run. The company once was on the verge of making a major splash in the industry. Now it is poorly run and continues to suffer self-inflicted wounds due to poor management decisions. I still think a buyout comes but at much lower levels. My target it still sub-.50 takeout.

[Odessa99]

Do you think the bid/ask spread of about 20% at the time of the trade had anything to do with the math that resulted in a 20% drop on that one trade? BTW, I am glad to be long on this stock (although I'm way down from my cost basis) at the moment. Because if I was short a large number of MSLP shares, covering on this very thinly traded stock would scare the wits out of me.

As always, simply my opinion.

"Nice Pop Odessa!

Down -20% on just 2k shares traded. Keep up the great trading advice! "

MSLP

[Madcowelixir]

Nice Pop Odessa!

Down -20% on just 2k shares traded. Keep up the great trading advice!

[Madcowelixir]

Nice Pop Odessa!

Down -20% on just 2k shares traded. Keep up the great trading advice!

[mvan13]

The new Crisp Protein Bars are great....they give me a little hope.

[Odessa99]

Welcome back, Neuronal. The chart is looking like a flag and pennant formation... might be due for a pop here.

As always, simply my opinion.

MSLP

[Neuronal]

No not really, the more surprising part to me was that they bought more at all.

MSLP

[Madcowelixir]

Wynnefield spent over $10 MILLION buying $1M+ shares of MSLP beginning in 2013.

You consider $15 thousand a nice addition?

$15k divided by $10m = .0015

That is 1/10th of 1% add to the Wynnefield portfolio

[Neuronal]

Nice insider buys (Wynnefield 10% ownership) just posted. Hopefully something positive will happen with this stock and company one day for shareholders instead of the CEO continually buying and posting new hot rods on his social media account...

MSLP

[Madcowelixir]

CEO Ryan was supposed to be in court as defendant on this matter too only weeks ago. Drex can't stay out of the courtroom and has lost every suit. He is like 0-12.

https://nypost.com/2018/09/10/protein-powder-company-preps-for-battle-against-hedge-fund/

[Madcowelixir]

CEO_Ryan lost his lawsuit filed against him by former brother in law Brad Billet. CEO Ryan appealed, lost that and then lost his attempt to deny legal fees won by Billet. Appealed again and lost that.

https://www.pacermonitor.com/public/case/23088074/Ryan_Drexler_v_Brad_Billet

[Madcowelixir]

Bring back the lawsuit against MSLP

9th Circuit reinstates protein powder labeling lawsuit

A U.S. appeals court has ruled a lawsuit accusing nutritional supplement maker MusclePharm Corp of misleading consumers about the source of its protein powder was not preempted by federal law.

In a unanimous decision on Friday (October 12), a three-judge panel of the 9th U.S. Circuit Court of Appeals reversed a lower court’s dismissal of the case, finding only the amount of protein in the powder, not its source or composition, was subject to federal regulation.

[Madcowelixir]

PF infused $8m into a MSLP convertible that bailed out the cash strapped and heavily indebted company.

Biozone assets, after acquired by MSLP, were sold to an unrelated party, not associated with PF. Empty shell BZNE ticker was then amended by PF to COCP.

If you go way back to Fuse Science and their huge endorsee Tiger Woods (whom Phil Frost was invested and orchestrated a secured loan of $200K from Brad Pyatt and MSLP to Fuse right before they went bankrupt and transferred the collateral assets. how do you think Brad knew Tiger and signed him at MSLP?) you will see the same cast of shady characters listed in the recent lawsuit ie Barry Honig etal....

I posted extensively as "Tontis_Acheater" on the criminal enterprise that is Phil Frost and his friends at the time as I was short Fuse, MSLP, BZNE, COCP, DRNE, etc..... You can Google my old moniker and see for yourself.

https://investorshub.advfn.com/boards/profilea.aspx?user=429520

[MikeyInTheD]

Did MSLP get plugged into the Philip Frost investigation? They did own BioZone for a time and they were named as part of the probe. And the chart does look like a pump and dump scheme if you look at MSLP going back to when Frost got involved and sold BioZone to MSLP and then MSLP disposed of that asset into another Frost controlled company, COCP. I can’t believe that MSLP would escape the investigation given they they bought and sold the company at the center of the fraud claim.

[SLC-JD]

Close - the injunction is temporary, pending a future hearing. Drex could conceivably be freed up up at a later date, and the parade of horrible sin the initial pleading could be realized.

It appears thus far that Buck still plans on buying equity (which would be dilutitave, but assuming Buck’s original proposal [~$1.89] stands, not nearly as dilutative as Drex converting under the terms of the revised note), the proceeds of which will pay off the convertible. However, any such action would be determined by a court appointed receiver, should the judge so rule.

The question at present is who this mystery partner proposing to buy Drex’s Debt is, what the terms are, and in the face of the derivative action, if the proposed deal is sufficiently meritorious to pass a business judgement smell test and circumvent the appointment of a receiver.

Not enough beta to even begin to guess at a final outcome yet, but it’s worth noting that the theory behind the TRO motion was deemed sufficiently likely to prevail that the motion was granted (far from definitive, but it is an initial indication of the court’s view of the argument).

[Madcowelixir]

Ryan loses another legal hearing and is not longer able to convert his convertible debt. Ryan is now a guaranteed minority shareholder going forward with no recourse back to control as Buck and friends are on the verge of buying the debt via the convertible. HUGE dilution impending (additional 10m-30m shares) but debt service expense will decrease substantially. MSLP lost ~$5m last Q but will save about $1m in interest expense quarterly.

The Plaintiffs also sought and obtained an ex parte temporary restraining order enjoining Mr. Drexler from converting the Note into MusclePharm shares, and enjoining the Company from issuing such shares to Mr. Drexler.

[SLC-JD]

It took some time, but it looks like Buck finally had enough:

https://www.otcmarkets.com/filing/conv_pdf?id=12935003&guid=CpoEUHVz5Dxyb3h

[Madcowelixir]

Cody, did you see the latest lawsuit filed against MSLP?

https://www.sec.gov/Archives/edgar/data/1415684/000119312518257804/d614646dsc13da.htm

[magarules18]

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.

[MikeyInTheD]

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.

[Hunterdog]

A paltry 10K shares a day isn't much of a head turner.

[MikeyInTheD]

Wow this is a nice run and traded well above my buyout target of $0.85. Will it continue?

[turokman]

The combined new fund owns 3 million shares.. Don’t you think that is deserving of a board seat at least?

[turokman]

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 ...

[Madcowelixir]

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.

[turokman]

Wow !

[SLC-JD]

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?

[codie]

I'm sure Brad will take whatever money you are willing to give him.

[MikeyInTheD]

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?

[MikeyInTheD]

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.

[Madcowelixir]

codie

Re-hire the nanny and get me NetJets on the phone quick! I'm back!

[BuyHoldAK]

No trades today.. is this getting delisted anyone have an idea?

[Hunterdog]

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.

[turokman]

Sign me up !

[codie]

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

[Madcowelixir]

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.

[MikeyInTheD]

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.

[stupified777]

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.