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Well, it is probably true...most people are very simple minded, so why make it so complex?
I personally don't build muscles myself, and I don't share the American fascinating for muscles and athletes....but I'm a keen observer and I see a lot of money in this culture.
Musclepharm is touching something deep down in the American society, something Americans shares with Brazilians....a strong body culture.
Europe got some of that too, but not that profound though.
Where does Musclepharm state that is coming up with an alternative to vitamin infused Sheets and Fuse Science electrolyte energy shots?
Most likely Musclepharm will come up with a product similar to 5-Hour Energy....don't put too much into the DROPZ name, it is just meant to indicate that the product is concentrated.
I wonder why you assume that the executives at Musclepharm will do something stupid before you have been presented all the facts?
I'm $50,000 plus but $140,000 plus surely felt better.
I got more shares now than before though and I will keep on adding. I find Musclepharm's business much more scalable and promising than Skullcandy's for example....and Skullcandy is worth like $260 million.
Musclepharm is a very interesting company, it may screw up...but it got lots of reasons not to. If the executives screw this up they are at a completely different place in life. Musclepharm has established a very strong incentive structure having issued so many shares to the executives so fast. Also, there is no job guarantee being a top executive in such a young and fast growing company, so if they don't deliver fast results they may very well be squeezed out.
The executives truly don't have any incentives to signal anything that could be perceived negative in 2015.
I don't really see why DROPZ couldn't become a success?
If it's a small energy drink beverage endorsed by Tiger Woods, that is similar to 5-Hour Energy, it got lots of chances to become successful.
5-Hour Energy has been challenged by lots of imitators that came too close to 5-Hour Energy and thus infringed copyrights and patents. So, Musclepharm knows what respond to respect from 5-Hour Energy if the alternative isn't truly alternative. Also, many of these competitors lacked marketing resources. Musclepharm already got Tiger Woods, so that will help drawing attention to the product in itself.
Young people might find the image of Musclepharm interesting and some famous dude like Tiger Woods endorsing cool enough to try it, same thing with truck drivers, athletes and other users of such energy shots.
Musclepharm might initially launch the product at Walmart and Walgreens and then take if from there. I do see the number 2 company in that product category with more and more shelf space at Walmart...so, the market monopoly status of 5-Hour Energy may soon be gone.
5-Hour Energy sells for $1 billion a year, so if Musclepharm takes 5% of that market it is $50 million in revenues with extremely high margins.
you couldn't find anything about this because it's your wild imagination, why would Fuse transfer assets to Mslp and not disclose it?
It might be that Fuse Science will transfer all it's assets to Musclepharm as it owes Musclepharm money and that's all it got to pay with. Until we hear something official I wouldn't go speculate about anything though.
Most likely, Tiger Woods was what Musclepharm was looking for in the deal with Fuse Science.
Phillip Frost knows Teva in and out...and he has built up 3 pharmaceutical companies from scratch
Phillip Frost knows everything you need to know about expanding your market, so I think Musclepharm is in very good hands with him.
When it comes to Wynnefield Capital, Wynnefield Capital is heavily invested into Nature's Sunshine products...that recently entered China through pharma contract manufacturer Fosun in Mainland China...that's useful for Musclepharm having such an institutional investor.
Still, he built lots of experience from his failures, ultimately building a real company.
Brad knows his limitations better than anybody else having tried to fail....so, don't expect too much controversy and alternative management approaches in 2015. Musclepharm will work hard for the shareholders, I promise you that.
Brad doesn't need more dilution.
There is a lot of unfinished business with the current endorsements, so signing more top athletes is completely out of the question.
Also, there is approx. 1 million shares left for equity compensation. Of these 1 million shares, Brad can realistically only grant 200,000-300,000 to himself. The company has grown so it should be expected that he will be wearing less hats and that he will have to grant more than 2/3 to other executives.
Finishing the authorized shares for equity compensation over 1 or 2 years would be a negative signal....It would signal greed and that another dilutive capital raise was around the corner.
The stock price is vulnerable and no shareholder value has been delivered to shareholders for 3 years...so, it is really hard for executives and board members to be greedy at this stage.
My guess is that less than 1/3 of the remaining shares for equity compensation will be issued in 2015.
Basically, expect around 3% dilution in 2015 and expect that the CEO will be receiving moderate compensation in 2015 compared to 2014. Brad will make a lot of money in 2015 though as his stocks double in value....and he may receive a very juicy bonus in 2016 if Musclepharm starts making tons of money.
I think that the next dilution will come whenever Musclepharm finds a great acquisition target among contract manufacturers.
When it comes to Brazil, more than likely Musclepharm will find an adequate contract manufacturer that may provide Musclepharm with an option to buy in the future. Brazil is uncertain territory, but Rio de Janeiro and Southern Brazil with Sao Paolo and Belo Horizonte as dynamos do offer quite the potential.
keep on bashing the stock, the facts will speak for themselves.
i'm not promoting or bashing Musclepharm. That wouldn't be right as I'm still planning to buy more stocks.
I'm concerned over a thing or two though...but I'm confident that Musclepharm share my concern and will fix the issues.
Furthermore, I think that Frost and Wynnefield are giving Brad a last chance to prove his worth. If Brad screws up the shareholders' letter or the next conference call is really bad, things might change....support of the management might vanish.
The Musclepharm stock was doing fine if it wasn't for the shareholders' letter, Q3 and the Sidney Rollock resignation with too favorable severance package.
UFC is mainstream, while Tiger Woods used to be.
I don't know what to tell you guys, UFC and Arnold Schwarzenegger were great for Musclepharm....I simply don't understand why Brad signed Tiger Woods and what that will do for the brand, unless Tiger Woods will endorse the Nature Sport line.
Tiger Woonds is expensive and he is potentially alienating the core customers, making the MP brand suffer.
The TV add campaign, "Musclepharm fueling performance" would be great intro to some UFC fights but seems completely irrelevant before a golf tournament is broadcast. I mean, the products are MP Assault, MP Combat Crunch....it's not MP Birdie Num Num or MP Swing.
learning curve, can i hire you as my life coach?
I do think that Musclepharm got lots of potential...but one thing that keeps me up at night is the Tiger Woods endorsement.
The loud and aggressive Musclepharm brand endorsed by a legend from the sport of Golf????....even if Tiger Woods is a cool guy, he is still the golfer that used to endorse Buick.
Only option for Musclepharm is to let Tiger Woods endorse another brand extension of the Musclepharm brand. Another separate line for Tiger similar to Arnold Iron would weaken the brand image imo.
The MP brand needs to be protected as it provides the highest margins..so, i wouldn't fool around with it's image.
PureBrands LLC, based in Boca Raton, introduced the Sheets Brands energy strips last year.
LOL, it never fails...Boca Raton, you hardly find more bullshitters per square mile any other place in America....
lebron james condoms?
I thought that DROPZ was suppose to be an energy drink, so I'm kind of surprised that it is bashed to this extent?
Musclepharm definitely doesn't need to be associated with Fuse Science. Fuse Science was a typical South Florida sham company...The company was headquartered at 167th Street in Northern Miami...this is in the real ghetto....a very bad section of Miami where the local Hotel, is called Hotel and nothing else.
Typically you see lots of these sham companies with addresses in Boca Raton or in West Palm Beach. Every Chinese sham company that got listed through reverse merger hooked up with some Boca Raton lawyer. Much of what is listed on pink sheets and OTC exhanges is headquartered either in Boca Raton or in Los Angeles.
DROPZ might be a bad choice of a brand name for Musclepharm if such negative postings continue.
Musclepharm is partially to blame for being associated with Fuse Science. Musclepharm invested in Fuse Science and Musclepharm trademark registered the name: DROPZ SCIENCE.
This kind of bashing can be quite hurtful for a small company trying to launch a new product....just as hurtful as the postings by the online blogger Anthony from NJ regarding Thermolife and Musclepharm.
Tiger Woods eye drops?
At the end of the day, you can find great clothes at TJ Maxx and Nordstrom Rack if you want to. Whatever you buy, whether Hugo Boss Jeans or Calvin Klein underwear, it will be much cheaper than going to the department store.
In the big cities, the shopping experience at the outlet is similar to the shopping experience at Walmart, it is dirty, the people are nasty, they smell bad and it's just sad, very sad.
So, this hassle gives lots of room for other channels where the shopping experience is a little more pleasant.
Buying something over the Internet here in Miami where we live in condos, that means you have to pass Pierre down at the security desk. Pierre doesn't speak english well, Pierre's French is a little different from what I learned in School and overall Pierre is not a very pleasant person...Who wants to deal with all this? not me for sure! I go to Costco or GNC anytime!
somebody seems to be very unhappy about Musclepharm's success...I wonder why?
Musclepharm is pretty much walking on top of the competition with it's recent retail expansion.
it's the same whether it's Calvin Klein, Apple or Musclepharm...different channels have different prices.
You have high involvement purchasers and then you have low involvement purchasers.
To the low involvement purchaser, an Arnold endorsement sells the product by itself....to the high involvement purchaser, the Arnold endorsement only sells when backed by credible company like Musclepharm.
High involvement purchasers are for the most part willing to pay more, unless they are the most hardcore bodybuilders of all. The most hardcore bodybuilders would buy the most generic product on the market, such as Optimum Nutrition Gold standard.
Some consumers are cash-strapped (like me down on MSLP), many are not....so there is something for everybody.
Personally, where I live most people would prefer GNC and Costco over Walmart. Many big city people with good incomes are like that, they don't bother the hassle shopping at Walmart or any other place where low income people shop.
Overall, there are many snobbish big city consumers in America, whether you like it or not.
Walmart is mass market retailing, it's huge but the least profitable per unit sold.
GNC is specialty retailing, it's huge for MSLP and it's the most profitable per unit sold.
Musclepharm is riding on both horses and it is trying not to fall off any of them as good as it can. Basically, Musclepharm cannot dilute the brand in the eyes of the specialty retailing customer, as it enters big box retailing.
There is nothing special about this bifurcation of the market into specialty retailing and mass market retailing.
Apple has adopted the same channel strategies, so has Nordstroem, Ralph Lauren, Michael Kors and many other consumer product companies.
It is all about giving the high involvement purchasers the impression that there are real differences between the different channels, and that the higher margin channel is superior to the lower margin channel.
What made you write this nonsense?
Musclepharm has built up an impressive sales and marketing operation that recently added Walmart and Sam's Club to it's wide range of retail partners.
Musclepharm doesn't need to refer to Walmart on it's web-site if it doesn't serve any purpose to do so. Margins are lower at Walmart compared to other channels, so it's natural for Musclepharm not to promote that channel. That said, Walmart brings a lot of business, in particular in suburban and rural areas where availability of more advanced retailers is limited.
Probably Tiger Woods will need to generate at least $40 million in annual sales for the investment to pay off for Musclepharm.
Endorsement payments and related advertising may very well run up in $10 million a year....so, Musclepharm definitely needs to get quite some revenue out of that deal.
Tiger Woods seems to be involved with the DROPZ Energy drink project.
DROPZ is definitely a big opportunity for Musclepharm shareholders as it could be the one product that could make Musclepharm a $1 billion company.
Musclepharm could divide it's branding into:
1) Musclepharm branded products including brands in brands (MP, Arnold Iron)
2) Non-Musclepharm branded products where Musclepharm Corp appears in small letters at the bottom of the label. I think Fitmiss fits the bill for such branding.
Doing so reduces the risk of ruining the specialty sports brand image which so easily can be eroded.
I believe that Musclepharm should keep the non-Musclepharm branded products light on sport, but not entirely without it.
Interesting company from Ireland:
http://elivar.com
Vega Sport is a great sports nutrition brand...
Wow, that's what I call genius marketing!
http://vegasport.com/
the Fitmiss brand may work as a separate brand for diet supplements, diet food, mass market "sports" nutrition products and beauty products...but it doesn't work as a credible sports brand
So, for products like diet tablets, low quality protein powders, protein bars and other protein enriched products targeted the mass market at Walgreens, Walmart, Winn Dixie....there it might work.
Also, for beauty products like sun screens, body lotions, lip balms, hand lotions, foot creams etc sold at Walgreens, ULTA...the Fitmiss brand might work.
For the specialty segment at GNC, Vitaminshoppe, there I would make a separate MP Sport Women brand.
Fitmiss is not supporting the Musclepharm brand image though....so, I would keep these brands completely separate...
The Fitmiss brand could be endorsed by any successful woman, as it has little to do with sports, and more to do with being in harmony with self....eating some protein because it's good for you....Essentially, the Fitmiss brand would work for lazy people....and to be honest, that's a much bigger segment than any other.
most of the rich Brazilians have already paid for their multi million apartments here in Sunny Isles Beach...same thing with a bunch of rich Russians.
The Dezer clan, some Israeli Jews that pretty much own all of Miami Beach have always catered to the wealthy of the next busted out economy.
The rich Brazilians had to offload all of their Brazilian real a few years back. So, pretty much half of the staff at the local bank branches in Sunny Isles Beach/North Miami Beach speaks portuguese. The other half speaks Spanish, Hebrew or Russian.
Yeah, Brazil is a complete disaster...Florida on the other hand, is the land of opportunity....even if the overall workforce is pretty bad here, there is a whole lot less government interference than anywhere else.
Musclepharm needs to look at the attractiveness of the market before it jumps in with both legs. To me, Brazil looks too risky.
These two buildings under construction/pre-construction in Miami are awaiting rich Brazilians moving in.
Bocconi University from Milan and HEC from Paris have some very good marketing programs... IMO, Musclepharm should hire some graduates from there to straighten out that terrible Fitmiss brand..
Ive had marketing professors from Copenhagen Business School, Bocconi University and Northwestern University. Furthermore, Ive had economics professors from University of California, Berkeley and London School of Economics during my MBA stay at Solvay Business School in Brussels.
I haven't forgotten the cold calls during lectures from this canuck:
http://facultybio.haas.berkeley.edu/faculty-list/rose-andrew
Yeah, Brazil is a mess that is better left alone. I have noticed that the Brazilians are flocking to Miami these days, and that many of them are not returning.
I think that would the way Musclepharm would do it. The shares were received as a prepayment, right?
The periodic performance compliance provisions of the golf bag sponsorship part of the endorsement contract might save Musclepharm a little cash. I have no clue to how much, but I'm sure that Musclepharm gets a break for the time that Tiger Woods didn't play any golf tours and tournaments whatsoever.
Right now he needs a higher stock price, nothing else.
Brad understands that investors aren't buying what he is offering right now....and that something has to give. So, I wouldn't be too worried.
The 1.5 million shares issued in 2014 was an anomaly that had to do with the vesting of shares over time. Same thing with Sydney Rollock departing with 75,000 shares. Brad is afraid of losing his multi million dollar stock grant.
If I had been Brad, I would have played the cards the same way.
There was no other way, it is incredibly difficult to grow 100% with little credit worthiness...so, he chose to collude with the big boys and he made sure he took ownership of a fair share of the output.
Now Musclepharm needs to adopt a traditional business model that creates shareholder value for all shareholders.
First step for Brad was to make private placement participants happy. Frost and Co. got a good deal and allowed Brad and Co. 3 million shares.
Brad did it Greek style...he took as much as he could as fast as possible.
Now things are changing. Brad got close to everything he wanted and he needs the institutional investors, the small investors and the creditors.
So, much brighter times are ahead of us...
You never know who will buy Musclepharm.
It could be billionaire Jorge Paulo Lemann that is behind Anheuser-Busch InBev and Burger King....or it could be somebody else. Who knows?