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q4 better be good then....because otherwise Musclepharm will be punished for having delayed disappointing results for two quarters in a row...and it could ultimately depress the stock price throughout 2015...until Musclepharm consistently reports results and guidance in time.
It might be that it is not a bad sign, but merely a question of Musclepharm not having a clue about how much it sells through Walmart and Sam's Club until the end of March. Also, the strengthening dollar makes it harder to predict sales abroad...which could be still growing, but not as much as anticipated.
avocet, you are on to something there.....
if Musclepharm continues to grow through q4 and q1, then we are heading towards $20. This could very likely be the case...
During 2013 and 2014, Musclepharm hired many sales managers to serve different markets across United States or to serve different markets abroad.
Furthermore, Musclepharm expanded into big box retailers Walmart, Sam's Club and Costco....
the value of the Tiger Woods endorsement may lie ahead.
If he gets back on the golf course he will get a lot of attention from the media....probably more attention than he has ever gotten before.
If he doesn't get back on the golf course, then Musclepharm can claim some of the stocks back as the golf bag sponsorship is worthless.
most of the advertising of sports nutrition products is centered around social medias.
That's part of Musclepharm's success as well as Jym Nutrition's success....that they use the Internet and social medias more actively than other companies.
Musclepharm is probably not overspending on endorsements, it just spent the money on the wrong endorsers. Tiger Woods was a big mistake and he might outright damage the brand.
Musclepharm marketing should focus on telling the benefits of it's products (like Jym Nutrition) as well as telling about it's high product quality (like Dymatize and Optimum Nutrition)...because that is a whole lot cheaper than paying some athletes to endorse your products.
but he is only getting a water bottle from Musclepharm?
Tiger Woods should endorse the DROPZ OUT line...
"Muscle Addict" would have been a good name for the hardcore line...I wonder who picked that lame hardcore name? gotta be somebody that watched old adult movies from the 90ties...
Victoria's Secret uses the word addict in their product names....addict is a powerful word, but when combined with some other word, then it's cool..
Musclepharm needs to send out the shareholder letter by the end of this week.
Musclepharm cannot delay announcement every time they are negative. Something like that gives investors the impression that the company is systematically hiding things.
The reaction to the stock price will be much less when negative things are communicated right away than when delayed to the last moment.
Among other things, investors speculate whether the management is trying to time announcements that include employee incentives plans...in order to maximize what it can take from shareholders....that is a signal that the goals of managers and shareholders are not the same.
Creating too much information asymmetry between company and the market is very unpopular with institutional investors....they need transparency from the management's side into what is going on with the company.
Musclepharm had a tradition of a shareholder letter prior to annual reporting....so, it should stick to that.
nuts and melon...and cream sandwich
or a Bruce Jenner protein bar with nuts and melon
sex sells to women....that's what I'm talking about....When you are selling with sexy brand messages to women you need to be careful though that you don't cross their boundaries....it has to be sexy, but not over the top.
Also, if you enter the consumer category, it has to be children friendly....
The sports nutrition industry is all about making people sexy and good looking...so that has to be incorporated into the branding in best fashion. The fashion and beauty industry are the same....so, that's places to look for inspiration, as well as playboy....that is the only company within the sex industry that got as many female followers as male followers
Musclepharm will go higher when it puts together all the loose parts....it got Walmart, it got Sam's Club, it got Costco, it got GNC, it got some very good endorsers, it got some good powder products, supplements and protein bars.
It got some questionable endorsers too, some issues with excessive dilution thus far and some brand issues with the fitmiss line....and some questionable forthcoming lines like Hardcore, Oxysport.....where the names seem more worthy MuscleTech or Met RX, than a company that tries to become a leader within the category as Musclepharm.
Hopefully, Musclepharm gets the best out of what it got....and those seemingly negatives are combined in best manner and doesn't ruin the roots of the company.
women have a sexy animal inside of them....I wonder why Musclepharm hasn't figured out to appeal to that side of women?....by making a protein bar that borrows a little from the marketing of Victoria's Secret....a little bit from Playboy...from the perspective of what women feel comfortable with.
Women today want to boost their butts, they want to be slim too..and kind of a little bit slutty too....
So, if Musclepharm could push the limit without going too far....perhaps a protein bar, that shows a sexy woman's butt....could be something that could make the fitmiss brand sell for millions in protein bars.
when will Musclepharm come out with a protein bar for the Iron line?
I mean a protein bar with Arnold Schwarzenegger's image on it sold through Walmart....that means millions in sales each quarter...
Costco, Sam's Club and Walmart could be the gateways to heaven for Musclepharm...if it gets a deal on the MP Combat Crunch in Costco and in Sam's Club....that would be a great boost to revenues and probably make it surpass the $300 million in revenues within 1-2 years.
guys, Tiger Woods and Johnny Manziel are they cool?
I'm telling you that they are not cool....but what do you think?
Under Armour sponsored Duck Dynasty....so, I guess Johnny Manziel could be some kind of brand ambassador in states like Texas and in smaller rural towns were Walmart is located...to them, he might be very cool....but not to some dude living in San Diego.
The MP Combat Crunch and the deal with Walmart and Sam's Club were the positives of 2014.
The compensation was excessive and the endorsements signed were outright horrible...a complete waste of stocks.
However, Walmart might be able to make it all happen for Musclepharm....it's a very tolerant channel and celebrities that are not really that sexy and cool can sell you products there....because the average Walmart shopper is probably not so picky and judgemental, they take you as you are...
The endorsements signed in 2014 were all bad....but I think Musclepharm can break through the barrier regardless.
I would definitely look at making a series of products endorsed by Colin Kaepernick
I guess Musclepharm needs to separate the coolest athletes from the less cool ones, and reserve the less cool ones for Walmart.
That the endorsers are young, fresh and sexy sell products.
Even if Arnold Schwarzenegger is an old dude, he is all that. Colin Kaepernick is sexy too in the eyes of young people today.
Johnny Manziel is not really sexy, and his abilities as an athlete are questionable...same thing with Tiger Woods.
Chady Dunmore, I don't know...she is sexy, but does she represent the brand. I would rather have that Brazilian beach volley ball player representing Musclepharm, who would be more of an athlete too.
Jen Selter..is she sexy? perhaps in Colombia, or in Miami...but in California, I doubt she would be considered particularly desirable
Musclepharm should study Abercrombie and Fitch as well as Victoria's Secret for clues into how to remain cool in the market without compromising your roots.
Abercrombie and Fitch is a strong brand that is struggling, but somehow manages to stay above surface. It would be interesting to learn from it's mistakes and successes in it's branding. What has worked and what went wrong?
Victoria's Secret has never really struggled, it's just been one straight line up...why?
Musclepharm needs to understand the challenges to managing a sexy brand that the young people like.
I think signing Tiger Woods could have been a negative to the brand building, same thing with Jen Selter, Chady Dunmore and Johnny Manziel.
Colin Kaepernick and Arnold Schwarzenegger seem to be what the market really was looking for in terms of image.
There is nothing unique about Tesla....it looks like a prototype of a car....the door handles are weird, the car is a joke design-wise.
When you see a Mercedes AMG, you say damn that's a beauty!...when you see a Tesla, you wonder when that piece of shit is gonna fall apart.
Musclepharm should never end up like Tesla.
Tesla was a temporary leader in it's industry and not one that could stick around for long.
Musclepharm needs a CFO with a background in large reputable corporations that are know for their focus on shareholder value, return on capital and costs...What we got right now looks pretty alternative considering there is a SEC investigation going on.
MusclePharm skeptics: All Show, No Strength!
Mslp is a $20 stock by end of this year!
I love the MP Combat Crunch project....I wish that the packaging would be in different colors like Quest Nutrition and Monster Energy....
I would love to see a Colin Kaepernick endorsed bar....or an artist like Chris Brown endorsing the bar.
perhaps Tiger Woods should be endorsing the bar too....but I'm not sure it would boost sales that much outside Walmart.
it's time for a cold turkey, i know it is!
good point! You are right about the fact that dilution has been killing the stock, so if that doesn't stop...yeah, $7 at $500 million market cap could be, or perhaps more like $0.50.
Most likely Musclepharm won't have that much dilution going forward though...as it won't get another shot at re-inventing itself
if Dymatize is worth approx $400 million with less sales than Musclepharm....then explain to me how Musclepharm should be worth 25% of that because it lacks own manufacturing for most of it's products?
Having all manufacturing centered in America might not even be the best solution anylonger with a strengthening US dollar....Could be that manufacturing in Canada is cheaper, or manufacturing in China or Brazil would be cheaper and better suit the import restrictions that exist in these markets.
For a line like the Iron line, I'm sure Musclepharm could get away with producing it in China....while it for the core MP line, probably would be better of manufacturing it in America.
The recent lawsuit may strengthen Musclepharm's quality control of it's manufacturing through third parties...which I only see as a positive as Musclepharm potentially expands with manufacturing abroad.
Definitely endorsements can be worth the money but unless Musclepharm can get Tiger Woods in some tv commercials endorsing the mp combat crunch or make an exclusive line of products that he endorses, then it will be hard to see any significant value coming off that endorsement.
I would personally prefer that Musclepharm focused on smaller endorsements, and some of them exclusively for the foreign markets it serves.
$8 for an emerging company within the food and beverage industry? c'mon!
Musclepharm got some potential to become the next Hain Celestial Group, like a multi billion dollar company....or at least a $300-400 million company like Cytosport.
Many of the companies that Frost gets involved with turn into something big one day.
There is a need for Musclepharm in the market, and Musclepharm may very well succeed within the food and beverage industry.
Look at how terrible the packaging of Cytosport Muscle Milk was a few years back, and eventually it made it big....because it kept on forming new retail and distribution partnership, and kept on working on it's products and image.
signing Tiger Woods was a mistake though.
Musclepharm could have gotten so many useful endorsements for the stocks and payments to Tiger Woods.
I bet you, that a sexy female beach volleyball player from Brazil or Spain would sell more supplements than Tiger Woods. She would have demanded 15,000 shares and a trip to Disney World for her family.
Musclepharm stands for being strong, powerful, sexy and young...Tiger Woods is none of that, okay he looks more athletic than most golfers, but right now he doesn't act like he is particular strong and powerful.
He looks more like somebody that is rehab after a slip and fall accident.
He is a legend, but again...I don't see somebody playing golf representing what Musclepharm stands for.
Musclepharm is bodybuilding, cross fit, mma, football, baseball, soccer, volley ball, basket ball, boxing...sports with lots of physical contacts and high intensity...it's not so much a brand for men playing golf or bicycling...that's not what Musclepharm is all about.
if I could trade MSLP on margin, I would still buy more.
I think the timing of Musclepharm's entrance into the protein bar space and RTD protein + energy drink space is very critical.
So many bad products have entered this space, but Musclepharm enters with some very promising products.
The MP Combat Crunch is a very well executed product.
I think the Coco Protein drink got a very nice packaging, that definitely gives hope of something great happening within the protein RTD space. Musclepharm might do better without the coconut water component and make something more mainstream with a minor twist.
Most people are not participating in the coconut water fad, they just want some protein drink and supplement that to some regular healthy food on the side if they are more educated, that's mainstream.
Musclepharm's focus should include the late adopters to the mainstream trend of protein enriched products, like the minority groups and the people shopping at Walmart and 7-eleven. These are the kind of people that will be very receptive to Musclepharm's powerful branding with bright colors, aggressive names and celebrity athlete endorsers like Arnold and Colin Kaepernick.
Musclepharm is an interesting brand to follow, and we can only hope that more people share that belief and bring the stock back to $14 within short time.
Brad needs to cool down on the spending side though, otherwise Musclepharm will never become a big name within food and beverage industry.
There is nothing alarming about anything Musclepharm has reported thus far.
Musclepharm is still one of the leading brand, just look up all sports nutrition web sites and you see Musclepharm all over it.
Sadly, Musclepharm is having some problems at the website that it grew from, Bodybuilding.com.
Bodybuilding.com targets an audience of high involvement buyers, the gym rats. Here you see that number one brand is Optimum Nutrition, that is the most generic brand of all. Optimum Nutrition is a completely vertically integrated company inside Glanbia, from raw material to finished product.
Jym Nutrition, another popular brand with the gym rats, may be popular because it provides lots of education into the chemistry of products and what they do to your body, as well as instructions into how to train, etc. The branding is very minimalistic, the packaging and labels are very easy to understand for those that cannot or are too lazy to read a text in English.
Okay, gym rats dig generic product and educative no frills product.... but they dig brand image product of Cellucor as well....and they used to dig Musclepharm that is very cool....so what happened?
Well, we know what happened, Musclepharm has aggressively expanded into a broad range of channels, and I guess with no special push or exclusivity at Bodybuilding.com, it's just too expensive there to be competitive with what it's selling for at other sites....so, unless it got a promotion going on, or some other marketing push....it won't sell as much as in the past.
I don't understand what the channel stuffing accusation got to do with what products are sold at bodybuilding.com?
Bodybuilding.com might be looking for exclusivity of a brand....but in Jym Nutrition's case, it's repeating what it did to Musclepharm, but with the full knowledge about how to run a sports nutrition company...Could be a problem!
Could be that bodybuilding.com is losing ground to competing sports nutrition web-sites and to Walmart, Sam's Club and Costco when it comes to selling leading brands....so, it's had to push the invention of an exclusive brand.
Could be that Ryan is trying to provoke Musclepharm to give it more exclusive products as well....which he got with the MP Hardcore line.
it gotta be Ryan DeLuca who is the one opening the door to Jym Nutrition. What relationship he has to the brother and Musclepharm remains an open question.
Musclepharm used to be the new kid on the block, Bodybuilding.com is helping Jym Nutrition becoming the new kid on the block....and in many ways doing much harm to Musclepharm.
In a way, Bodybuilding.com should not have helped Musclepharm or Jym Nutrition, it's job is to sell sports nutrition and introduce bodybuilders to all the best products, including niche brand....but not to be the extended arm for certain companies...and to have them display their products at their booth at expos, like bodybuilding.com is endorsing them over other brands.
If I were the Ceo of secondary brands on it's web-site, I would definitely go to the second, third, and forth bodybuilding supplement site, and work with them....and cancel the relationship entirely with bodybuilding.com
I don't see any benefit for Musclepharm or Dymatize having best sold product at like 15-20 place at bodybuilding.com....and Jym Nutrition having 3 products in top 10....
The system could swallow that bodybuilding.com did this one time with Musclepharm, but operating a front burner back burner romance with new nutrition companies....seems kind of unfaithful to me....and nobody likes being fucked with.
I wonder if Bodybuilding.com is planning to get involved in JYM?
Bodybuilding.com seems to be helping this brand in similar fashion as it helped Musclepharm when it started. The question is whether this cooperation is for the benefit of Liberty Media or just the DeLuca brothers personally.
Another question is whether there are problems in the relationship between any of the DeLuca brothers and Musclepharm? I mean, Jeremy DeLuca got quite a lot of shares in Musclepharm....
It's weird what going on for sure...perhaps the SEC investigation got something to do with it...I guess we will have to follow this one until we hopefully get some answers.
Jim Stoppani's latest tweet:
When the market is negative, then you have to wait.
We are not in a time of panic now with the overall economy.
I remember Perry Ellis trading at $3 early in 2009, and it just secured a credit line of $200 million from Wells Fargo....The company was worth $30 million.
That's an example of extreme market melt down.
In 2015, it looks like things are still adjusting in China, Japan, Europe and Latin America....but really, things are a whole lot better, and the future should be brighter. The US economy is just fine, and in particular big box retailers are doing better than ever.
So, what's all the worries about? Why were nobody worried back in October when the stock price was $13.8?
I was a little worried and sold off some chips, I went back in with some of them lower, and then more at $8.3...but hell I was a lot more worried at $13.8 than at $7. I haven't lost anything yet, I still got my stocks.
There has been nothing alarming about anything Musclepharm has been reporting. Did it seem odd that it wrote up the newly acquired biozone assets? Well, current accounting rules for acquisitions require the acquirer to record the difference between fair value of the acquired net assets and the purchase price as a gain in its income statement.
Musclepharm has to follow current accounting rules to the letter with an undergoing SEC investigation. It's pretty clear to me that Musclepharm made a good deal with Biozone.
That some investors consider actions that are required by law questionable is just sad...it's very sad for them if it made them sell their stocks, because there was no problem...it was positive news that was turned into negative news.
Musclepharm is a thinking and smart company. It hires smart people to to build up brand value, to penetrate the market and to set the right price.
All that sounds like it's very easy....it's not!
A smart company doesn't necessarily make money from day one, it actually takes time.
I don't see any major problem with anything that Musclepharm is doing.
Competitors may call the SEC and contact a law office after the discover some discrepancies of the contents of a product.
Who goes to Chromadex? I'm just asking!
Quest Nutrition is the company that everybody should be following. It got nice branding, great products and own manufacturing.
Quest Nutrition accomplished all that faster than Musclepharm..... The explanation to Quest Nutrition's success is that it focused on a high margin product from the get go, and it doesn't waste too much money on marketing, apart from the packaging.
Musclepharm got a different business model, it uses nice branding and endorsements to convey trust and to attract buyers. The products are good and a little different, but most of them are not revolutionary.
Musclepharm's branding strategy got more layers to it than Quest Nutrition's strategy because it's needed with the chosen target group.