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It just begun! Musclepharm is a great company and it still got little debt.
Creditors and investors will put money into the company when it adjusts, starting with changes to the management team.
The company is working on stronger ties and interdependencies with suppliers and customers, and that's what is keeping it alive. They want to help Musclepharm get back on it's feet, as they have good profit stream from it.
Even if it doesn't tell, it has been cutting head counts as it simply doesn't have the money to not be lean. It has given Musclepharm the opportunity to keep the most talented and loyal employees and get rid of those that are not, something that is brutal but can be very healthy.
The lavish executive salaries are the past, I'm quite sure anybody with large stock grants have no interest in asking for much right now, until the company gets financed.
it's normal that sales fluctuate like that from quarter to quarter....but that's something the company needs to be prepared for.
It diluted the stock unwisely last year, it should have diluted it to raise money when price was high and not for excessive compensation.
Yeah, it gives us some tax assets....but they are not worth much when we are so far from profitability.
Biozone assets need to be sold at any price as soon as possible....it's fine having a warehouse in California, and perhaps even a research lab but such a small manufacturing facility that uses most of it's runtime on producing shampoos etc, is just a waste of time. The cost of supervising such a small facility so far away from the headquarters doesn't make any sense.
Sell the company to some investors in the local area...they are the ones that can use that...not Musclepharm.
if major endorsements go, that will boost the stock price.
That is the hardest part to get out of as it's all contracts...but sometimes you just cannot uphold a contract.
When they hopefully are gone, Musclepharm needs to continue to cut all other costs back to levels of 2013 imo.
As is, it's a great brand that Musclepharm got with som nice products. Musclepharm doesnt' need to invent more new products than what competitors do going forward...From being a fashion company changing collection each season, it should turn into a classic brand like Coca Cola, Optimum Nutrition, Quest Nutrition and Clif Bar and Co.
The company needs to simplify and run the company like every other established brand. There is no need to be loud when everybody already heard you....everybody knows you are there. Now it is time to focus on consistency and quality.
The products are truly amazing though....The packaging is nice and there are products specifically designed to different channels.
CocoProtein, Combat crunch for Costco. Hardcore line for Bodybuilding.com.
It's all good but Musclepharm needs to focus on launching these products succesfully and be able to make money on any revenue from $100 to $200 million.
This philosophy, that you need to expand and expand, and invest and invest in people is completely nonsense.
Now consumers got an idea what Musclepharm stands for....maintain that image at lowest cost possible, with least people possible.
I'm looking at a time line and all I see is increased marketing costs, increasing selling expenses and increased administrative expenses....when Musclepharm is still dealing with same channels.
Endorsements is not a flexible marketing expense, and for that reason any small company should be very conservative. It is somehow also the responsibility of the celebrity athlete, not to sign companies that are too small and that may misrepresent what they stand for.....
Tiger Woods is a good man, and so is Colin Kaepernick...they are not out to hurt people or represent something that they cannot stand for...but that's what is gonna happen signing a small company.
It's never a win-win situation for anybody doing that.
back to 2013 level costs is what is needed!
Just because you move from $30 million sales to $50 million, that doesn't mean that your costs gotta rise. That is the thesis Musclepharm is governed by and that's why it now is cutting head dramatically, even if not telling openly.
The Tiger Woods endorsements, for God's sake.......Musclepharm needs to beg on the knees to have Tiger Woods replace the bag sponsorship with another company. Show the cash position and tell Tiger: We are working with creditors right now, We made a huge mistake signing you and let down all of our stakeholders, We are just so terribly sorry. We are just a too small company for a big star like you....We are running out of money.
Why be in denial about it? Tiger Woods is suitable for big companies that got huge marketing budget. He will kill any small company with his price tag....which is fair BTW for who he is...Musclepharm is just not for him, just as little as Fuse. Let him keep all his shares, they will be worth much more without him.
I hope his agents and lawyers are not just some tough Palm Beach lawyers that want to squeeze every penny out of a situation. Tiger Woods has given chances to small companies, I hope he has the mercy..
No Conference Call Q&A is not unusual.
Sometimes nobody got any questions, and sometimes the management doesn't want to answer questions.
http://www.aaii.com/journal/article/conference-calls-no-or-few-questions-are-costly?adv=yes
Lumber Liquidators did the same thing last week....
Musclepharm had a bad 4th quarter, as lots of expenses pile up at year end and the company didn't sell that well.
Musclepharm talked to the bank, revenues are normalizing and the company is cutting costs...and cutting middle men too internationally.
Yup, things look tight....but the management might be changing too, it's not unlikely.
which you probably will make 100% on, congrats!
Announcement about management change and talks with creditors forthcoming....Don't worry excessively, America is not a country where everybody tries to screw everybody.
Musclepharm got it's qualities and it is not drowned in debt....but it needs to readjust it's cost structure. Tiger Woods may voluntarily exit the endorsement agreement, he doesn't need Musclepharm and Musclepharm doesn't need him.
Mistakes have been made, but you learn from your mistakes.....I see Musclepharm above $70 million come fast....as it still sells a hell lot of products.
One day doesn't destroy a company....many companies have experienced this kind of drop, and most of them drowned in debt.
Debt is kind of irreversible to a great extent....endorsement deal with Tiger Woods is not. The deal was a mistake from day one.
Arnold Schwarzenegger got emotional ties to Musclepharm, he clearly likes the guys behind the company....I'm sure he will be very flexible to work out a solution that will benefit all parties involved.
Management and board with many stocks got an incentive to not ask excessive salaries going forward.
New Terminator movie up this year, so I wouldn't be surprised if the Muscle Bar would become a big hit at Walmart and Sam's Club.
Why is everybody that pessimistic? Brad is a nervous person....he is not feeling well and he couldn't take the pressure. There is always a number 2 in case he is leaving....and the number two seems like a genuinely reasonable man.
I have the feeling that the company will lay off quite a number of people and focus on more stable growth and less ambitious plans going forward.
NOT MUCH DEBT! Musclepharm was short of $8 million.....but it hasn't sought any pipe deal because it's revenues normalized.
Musclepharm needs to be bought....and it is not gonna below $100 million, even if Brad's unvested stocks might not be paid until the SEC investigation is over. Typically, the SEC goes after heads and not companies...
not much debt....
The company doesn't have much debt....so, if the executives are changed and the company is restructured.....then there might be a good chance of a come back.
Frost and Priebus might do something....same thing with the board.
I have the feeling that Brad is leaving his job, not giving time for questions & answers at a conference call?...This is America, that's not the way we do things....what was he thinking?
Also, giving investors false hopes of an acquisition before annual report, what was that all about?
It's not a $40 million company because of the massive sales through Costco, GNC and others...the UFC sponsorship. The biozone assets themselves are worth $10 million.
The fact that Q1 revenues are normal....and most importantly, the company has lots of new products that the market really wants....like the protein bars....The company is a finished project.
My opinion is that the company needs to be bought right now.
It is more likely that Capstone Nutrition is buying Musclepharm for $140 million ex everything, even the Ceo. Perfect timing from Capstone Nutrition's point of view and those guys up in Utah would make this to a billion dollar company.
The company should be sold.
Well, if a company is short of finances, then it better start saving on everything....replace the expensive Hugo Boss suit with a cheap Tommy Hilfiger suit....just be like everybody else until you are stronger and mightier than that.
Musclepharm needs to save money, be bought, settle SEC investigation fast.
Why hasn't Musclepharm presented all papers to SEC yet? 18 months to dig up what you need?
Brad may let the company go now....if he is liable for something, then it would be better for him to settle fast with SEC and get the company sold....in particular if the company got too big to handle in any ways.
Normal revenues in Q1...a commitment of $90 million per year with Capstone corresponds to that...just my 5 cents...
All that happened was that one or two buyers cut Musclepharm out in q4....shit like that happens to small companies.
I'm sure Musclepharm has adjusted it's staff to this reality....remember strategy is done in Miami, by Phillip Frost.
Musclepharm is a perfect company for Quest Nutrition to acquire....$14 per share and done.
Arnold Schwarzenegger Muscle Bar, MP Combat Crunch.....these products would fly off the shelves if they indeed were on the shelves sold single or in bulk.
There won't be any inflated salaries going forward, I would not be surprised by numerous $1 salaries among executives like Brad and Cory.
The company is up against the wall until it adjusts to reality or get acquired.
The company is too good to waste though.
Brad is promising normal Q1, and he is committed to buying for $90 million per year from Capstone Nutrition....so, Musclepharm is not over and done.
Musclepharm needs to save more money though, there is no room for wasting $250,000 on some charity to High School Children. Musclepharm cannot do such thing until it got it's act together....and $250,000 seems to be lots of money for a small company making less than $10 million.
the result was close to what I expected....I expected same result as last year based on the high sales numbers in q1, q2, q3 and the strong US dollar.
Is Musclepharm selling a lot in Q1?
The results are almost there for Q4 ..but I wonder what this tells us?
We will know better tomorrow....there are many unknowns in this....I'll definitely be listening to the Conference call.
Musclepharm could buy 20% of Capstone Nutrition, but then it would have to get it cheaper than $40 million.
Musclepharm got the leverage that it brings more than $90 million business to Capstone, and Capstone got the leverage that Musclepharm needs to cut costs.
Such a deal would be very hard to finance though....so, anything higher than $25-30 million for 20%....I doubt it.
tomorrow, it's the big moment of truth....
lol straight from Denver Colorado....
Tomorrow we may jump to $12...if Musclepharm got something good to say about the protein bar category and if it convinces institutional investors and analysts that the Capstone Nutrition acquisition makes sense...then the sky is the limit.
What's special about Capstone Nutrition? how will Musclepharm finance the acquisition? who will run the merged company? There will be many interesting questions for Brad to answer....if the answers are good, then no worry. If the answers are vague and not particularly encouraging, then we may stay where we are right now for a while more.
Dilution is not logical...The acquisition is on the drawing board and the company will remain vulnerable until it finalizes the merger.
The image of Musclepharm needs to stay fresh and spotless imo. Musclepharm should be perfectionist about everything...
Overall, Musclepharm is doing the right things...but there is still room for improvements
The packaging and visual advertising of Musclepharm is superior to the competitors, even better than Quest Nutrition and Clif Bar & Co....but some of the names of the lines are as Codie mentions, meant for dumb people.
The more important product names are okay, they have worked as Musclepharm has been very successful.
The Musclepharm brand name is good too....but the question is whether Musclepharm should continue to use it as a corporate brand name.
It could be that Musclepharm wanted to diversify into other brands, that fulfill different needs and targets
If they used a real branding expert he would tell them: Don't call it Hardcore, and don't use the other stupid names for lines like Core, Hybrid and Oxy Sport either.
The Core line covers vitamin pills and the Hybrid line is the core line?????....again, they pull the names out their asses.
They need some powerful and masculine names and all they come up with is Hybrid. Okay I'm into UFC and I drive a Prius....not everybody is a fag out of California.
Oxy Sport is the name of a carpet cleaner..again a fag name.
Core may work if it was used for the main line.
They could just as well take some Swedish names from Ikea....I would love to try that Knulla line ahahahahahaha!
Such a shame they didn't pick a more intelligent name...like Alpha, Warriors or Pro or something like that....seems like they pull names out their asses to me.
I think US stocks are overvalued and that European stocks are fairly valued. The expectation is that European stocks gonna shoot up from here but I don't see that being the case after the rally they have had over the last 2 months.
Deutsche Bank and BBVA are undervalued, but that's because financials hurt from this.
I'm looking for a savings account for my US dollars....I'm largely departing stocks right now and only keeping Musclepharm and European stocks, and that's after 6 years heavily invested in stocks.
if the the US dollar appreciated 5% since the announcement of the agreement with Capstone, then Musclepharm gotta attempt to negotiate the price down just a bit, reflecting that new reality.
Of course, Capstone got some leverage too....as there already is a deal and it might have gained some big clients since the agreement was drawn.
In any case, the more reasonable and attractive the deal, the faster we will reach the $20-30 price range...if ever.
The US dollar will depress revenues in 2015 to some degree.
Hopefully, we will also see some downward adjustment to the purchase price of Capstone as well....The strong US dollar has become the big theme in 2015 and it will push prices of US equities down, while European equity prices will be more robust.
Capstone Nutrition's core competence in manufacturing may propel Musclepharm's global expansion down the road.
2-4 years out in the future, it could be that the stock price of Musclepharm would be many times higher than today. If that'll be the case, it would be easy to expand beyond the borders, having all the knowledge and leverage to do so.
Perfect timing for financing an acquisition really, the interest rate expense will be minimal if it goes through....
Forbes should get off the bong and start writing articles about real issues. These are frivolous lawsuits and everybody is innocent until proven guilty.
I should sue Forbes for hurting my middle finger from reading all this bullshit...