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nice rebound from the bottom...it would be nice with some positive news at this point in time...it surely is needed.
Entering Walmart and Sam's Club was most likely a smart move. It's obvious that Musclepharm is penetrating the entire market and transforming itself into a much larger company...
In order to succeed entirely with this strategy, Musclepharm needs to consider manufacturing more of it's products.
Exactly, if you live in Corinth, Texas or Corinth, Mississippi for that sake...places like Walmart, Cracker Barrel...those kind of places got a whole different meaning to people.
There might be a GNC, but it's not anything similar to those larger GNC with much wider selection of products you see in Miami, Los Angeles, Chicago or any other major city.
Walmart works in such a place, I know from experience having visited lots of small towns like that.
Bellator_Exec needs to widen his horizon and understand not all people live the same place, nor do they have same patience, deep pockets etc.
Living in a small town, church, football and family got an entire different meaning....people there don't like too much hassle and if something is available at Walmart, that would be the place to go.
GNC has a problem. Musclepharm doesn't!
http://forum.bodybuilding.com/showthread.php?t=139892153
It's a fact that GNC online prices are higher than anybody else and it's a fact that Sam's Club has the lowest prices of all.
That said, my experience with GNC is that they voluntarily will take another 20% off any product you buy at their store if you got a Gold card membership. That's typical of all Mall retailers to surprise you like that, nothing particular whatsoever.
Also, consider the fact that most people don't shop at Sam's Club or even consider shopping there. Sam's Club is not near as popular as Costco, and sales per sq. ft is somewhat lower compared to Costco.
So, this has much more to do with GNC having a particular pricing strategy than Musclepharm doing something extraordinary.
I would personally buy the product at GNC as there is one here in Sunny Isles Beach where I live, and another one at Aventura Mall 2 miles away...talk about convenience! Sam's Club is like a 20 miles ride from here.
Not true!
First, the comparable price for the Arnold Iron Whey chocolate is $64.99 at GNC. Second, Arnold Iron is in promotion at Sam's Club at the moment....I bet that the price will be raised to $44.95 down the road.
This pricing strategy is similar for all major sports nutrition at wholesale warehouses...Glanbia and Cellucor do the same.
Sam's Club membership is a whole lot pricier than GNC gold card membership...so it's silly to compare the two.
Musclepharm has some sort of litigation insurance..Also, apart from the SEC investigation, none of these minor lawsuits cost millions....I wonder where you got that information from?
Innocent until proven guilty is the principle of the legal system, so it's silly to name somebody incompetent before any facts have been presented.
give credit where credit is due!
thus far, Musclepharm hasn't lost any major lawsuit, neither has it been reprimanded anything by the SEC after 12 months of open investigation.
Innocent until proven guilty. Typically there is more of the active ingredients than what is promised...
These kind of lawsuits are for the most part entirely frivolous and bs!
It might be true that there is a lawsuit...but just because somebody sues you that doesn't mean you have done anything wrong.
You are considered innocent until proven guilty.
All protein companies get frivolous lawsuits against them about mislabelling...fueled by lots of bad talking of these type of companies and way too many lawyers in America.
I'm questioning the depiction of Musclepharm as being dishonest when it comes to the content of it's products....I believe there are things that could be better from a shareholder's point of view in terms of decisions....but the product is all right.
I don't agree with anything that you are writing!
It's fine to raise concerns and being emotionally upset at things that are perceived negative to investors.
Another thing is to exaggerate or to insinuate something is wrong when there is no chance in hell that is the case.
Writing up the value of intangible assets, what's wrong with that?
All the past information regarding some settled lawsuits of the Deluca brothers have absolutely nothing to do with anything.
That Musclepharm pays bodybuilding.com for marketing is completely legit, I mean anybody, be it online bookstores to facebook charge for marketing.
I thought your observations regarding Walmart were correct. I thought that completely undifferentiated products were sold at half price at Walmart versus GNC. This is however not true! The color and branding is the same, but the container size is completely different and it's not cheap any place.
When you talk about dilution your predictions are way off the chart. 18,000,000 shares estimate for 2015? c'mon, further dilution may come and it may affect the stock....but how do you come to that number?
Wait and see....that is the approach I will take now.
The stock dropped a few weeks back, and it may very well get back to the level it dropped from very soon. I hope so, holding onto my position of 19800, which is little changed from my 23,000 shares initial position.
We can analyze forth and back, approve or disapprove the actions of Musclepharm etc....fact is that predicting the future is no science. We simply don't know what actions to see and what their ramifications for the stock price will be.
So, I will wait and see what the future will bring....and hope for the best.
Musclepharm needs to secure it got the maximum corporate financing power conceivable....and that comes from being credit worthy.
So, the logical expectation should be to see no further equity compensation and to see no more endorsement deals being signed entering 2015.
750,000 shares or something similar set aside to another equity compensation program in 2015 would be disastrous to investors. I don't care whether it is options or not...it's excessive dilution following a year with 1,500,000 shares issued.
750,000 shares issued in 2016 would probably not rock the ship much....and it would be worth a whole lot more to everybody. Musclepharm needs a break from the dilution crazy train in 2015 to become credit worthy enough to finance itself on fair terms.
I see Musclepharm at $20 or higher as a realistic price target under such a scenario. Musclepharm's capital needs aren't that great, being a simple protein powder company expanding in logistics and manufacturing capabilities.
Compensation should be more cash based in 2015, which makes sense in a year where operations need fuel from corporate financing.
correction cookies n cream...Oreo cookies are not my thing, I was not brought up eating those thing...so, I have no idea what cookies and cream tastes like.
Down here in Miami, dulce de leche ice cream is the big thing.
I feel Tiger Woods would be worth more to Musclepharm if he retired. He may never be worth what Musclepharm spent on him...but at least something.
He really isn't a great golfer anylonger.....I think that's clear after him taking the last spot at his own Tournament in Orlando.
Tiger Woods is definitely not contributing to the share price of Musclepharm and launching products with his name at this point in time...that would pretty much be like launching a MP Cosby Assault chill pill with cream n cookie flavor.
when you take out $2.5 million to buy back shares to "finance" very high CEO compensation (in shares)....then you may need to draw $2.5 million from your line of credit at say 6%...that's $150,000 interest expense over one year...not only that....it makes the whole operation more risky.
The board is really the problem here. The board has been condoning this kind of behavior by the CEO year after year.
You wouldn't think that this company was undergoing a SEC investigation behaving like this. You would expect that a SEC investigation would put a damper on any activity that could be considered alternative to the norm and morally repulsive.
It's a bit like meeting up in court in trainers and sleeveless shirt for a murder trial.
This is the time to shine, not to put question marks to character and integrity.
It's a fact that the board recommends spending approx. $6 million on the CEO. I'm just wondering...couldn't Musclepharm get more for the $6 million than what we are getting?
I mean, if you believe in capitalism and free markets, then shouldn't you let the market mechanism work and get the most for your buck?
You can get a CEO from a company with billion dollar revenue for $6 million...so, if a small company feels like spending that kind of money on a CEO, shouldn't it look for somebody more seasoned and of a higher caliber at this stage?
Nevertheless, if you go ahead with a more unexperienced CEO to build up an organization, then how much should he really be paid considering the cost of an adequate support team?
I believe in giving anybody a chance...I just don't understand the share buyback policy when the company so badly needs finances, neither do I understand why compensation is so high.
equity compensated executives, equity compensated athletes, equity financed company expansion plus limited profitability.....that's Musclepharm in a nutshell!
Musclepharm should build non traditional sales channels
1) the personal trainers offer a potential for Musclepharm. offer personal trainers some sort of Musclepharm Sports Center certification and let them sell Musclepharm products.
2) outlet stores in major malls, that typically are located in areas where lots of people live and/or lots of tourists visit.
Sawgrass Mills mall run by Simon Property Group in Miamia/Fort Lauderdale area would be a great place to start. It gotta be the mall with most Brazilian tourists in the entire World, they are everywhere and they buy a lot. Not only that, it is the largest outlet mall in America.
Dolphin Mall not too far from Miami Airport is another great outlet mall....a little smaller, but lots of tourists too and not only that, a young, higher-end Latin audience.
I'm sure there are similar outlet malls around other major US cities, I cannot tell how great they are as I'm not familiar with them.
3) free standing outlet stores in touristic areas. Muscle Beach, South Beach, Las Vegas and Turkish and Brazilian tourist destinations.
Turkey is known for it's young population and love for bodybuilding....and so are many of the tourists that visit Turkey. Apart from the tourists from Western Europe, you got lots of people from bodybuilding loving Russia, Bulgaria, Iran etc. If sanctions against Iran and Russia eventually get lifted, not only do you have a good base for selling retail, but wholesale as well.
Brazil is a non brainer...They love looking pumped up.
Cocrystal pharma got screwed in the biozone deal. Apparently, the assets were sold below market value and the Musclepharm stocks it received were instantly diluted as Brad announced a major employee incentives plan following the deal.
The first major institutional investor Wynnefield Capital got screwed as well. It's the most important institutional investors as Wynnefield is known for activism. Yet it was object to Brad taking 1/3 of the shares in the employee incentives plan, which seem excessive by all means given that there are multiple key executives in Musclepharm besides the CEO.
Really, it looks pretty bad to the big boys....and even worse to small investors that cannot collude with management to fix the deficits from dilution.
At the end of the day, it is going to be the little guys paying for whatever bad Musclepharm does to the big guys.
Just because Brad preaches profitability and Brad buys back stocks doesn't mean that Brad wouldn't raise capital in 2015. I wouldn't be surprised one bit as creditors aren't more thrilled than anybody else.
...and a shareholders' letter that suck as much.
2014 has been a horrible year for Musclepharm investors, 10% up with 100% sales growth....but it's been a terrific year for Musclepharm insiders, with 100% net worth improvement for Brad without delivering real profitability as promised in shareholders' letter.
Batista, baseballplayer...what's your comments?
with 10% dilution i believe p/s=0.5 is fair enough....the musclepharm stock is worth something, but it will take a little while before it will appreciate
I'm not sure that is bad really...considering those logos were terribly ugly...Also, it's an attempt to improve the image of the sport.
ring side banners is all that Musclepharm needs.
Tiger Woods sucks big time though, so I will stick to my assessment that Musclepharm spent too much on that endorsement.
Tiger Woods is worth $20-30 million to any company that is big in Asia...for American companies, he got little value...He acts too much like a retired old man that settled down in Palm Beach Florida, to relax and do nothing.
Tiger Woods lost his sparkle long ago and he took the entire golf industry with him in the grave. He was like the greatest 10 years ago... but the only reason anybody follows him now is to see how bad he is gonna be in his next tournament
As long as Musclepharm cannot deliver a decent stock price to it's business partners, endorsers and investors, I'm not so sure they will receive any helping hand from any of them.
Johnny Manziel, Cocrystal and Wynnefield Capital have no reason to be thrilled with Musclepharm's stock at $10. That's not making them much money.
No wonder Cocrystal and Wynnefield gave their apparent thumbs down in the proxy vote of the employee incentive plan this year. Musclepharm's board got something to consider next time they recommend an equity compensation plan.
what's better?
1) to own 10% of a $240 million market cap stock that will keep on appreciating with sales growth, or
2) to own 15% of a $60 million market cap stock that cannot be uplisted to Nasdaq
No matter what, it's important to convey trustworthiness to SEC, employees, investors and creditors if you want to bring Musclepharm up in the super league of companies. Even if you are greedy you should have figured out that it pays to hold back to earn much more money later on.
Also, as the stock drops and times get tougher....it's very easy to be replaced as a CEO if your are the man that issues too many stocks to himself...unless you have a highly dysfunctional board and some investors that don't care. Believe me, Wynnefield Capital will start complaining when his investment goes negative....because he knows that shouldn't be so if it wasn't for a management that serves own self interests.
Tiger Woods looks a lot better and more athletic than he did when he injured his back....I was afraid he was going to retire...
This kind of commercials are crucial for Musclepharm. It's a good place to start with the Golf Channel that costs a lot less than ESPN and FOX Sports.
All in all, it's positive news.
It's a plus that Tiger Woods is one of Nike's top endorsers. Nike does a great job in assisting Tiger Woods in managing his image as an athlete.
until Musclepharm's management conform to more generally accepted business practices I can talk as much positive I want and it won't do a thing to the stock price.
Musclepharm needs regular employment contracts, with somewhat generous exits...but there is a limit. You are free to leave and you may be fired anytime...but it doesn't mean you leave with 4 Rolls Royces after 12 months of work...You take your bag and leave with a little money, nothing else.
Same thing with corporate financing....at some point you need to finance all your needs through creditors. Do I look like a venture capitalist, like an angle investor? I'm not! I'm investing in a public company, so what about treating me with a little humility.
Stop wasting cash, stop diluting the stock excessively.
Start conveying trust to everybody around you and start treating everybody around you like they are something too. Don't overvalue your own self-worth!
Jack Welch made GE's stock grow 4000% by treating employees well, by killing wasteful spending...Okay he is almost a billionaire today....but when he left GE it was worth almost $300 billion.
I guess Musclepharm is trying to sell more to older folks over 35 that want to look young and stay healthy.
Now where young guys need to be fit to be interesting to the ladies, the older guys are imitating.
Thinking out of the box might work, I guess.
Under Armour had a similar strategy, entering a segment nobody else found particularly interesting....The small town country folks segment. Under Armour came up with the coolest hunting gear and spent millions on sponsoring the Duck's dynasty show. Now, every small town redneck wears Under Armour.
Musclepharm is big in Brazil for three reasons
1) Fitness and body culture is big in Brazil
2) UFC is big in Brazil
3) Every Brazilian got an Italian inside. They love making fashion statements.
The Musclepharm brand is kind of cool.
I don't read Greek, so I have no idea what learning curve is writing about.
Regarding Bellator_Exec, he might be the smartest guy in the room....but I disagree with his critique of the Walmart strategy. Arnold Iron is not cheap at Walmart. It's like $14.95 for a tiny container. Musclepharm is gonna sell A LOT at Sam's Club.
Definitely, the Walmart and Sam's Club addition to channels is a PLUS.
Had Musclepharm not entered Walmart and Sam's Club the way they have done...I might not have kept my Musclepharm stocks to be honest.
The Fitmiss brand I personally consider to be a major opportunity to Musclepharm...but I don't see any good execution there.
Musclepharm brand and Arnold Iron brand...it's all good.
Regarding the athletes: I'm happy with Arnold, but I want to see much more from other athletes, in particular from Tiger Woods that lead to some of the excessive dilution this year.
Regarding the dilution, Musclepharm just needs to get off the crazy train, because otherwise Musclepharm won't ever become a typical Frost investment...with 1000% return or so from his $4
"When you are more likeable, then there is less of a chance that somebody is gonna give you a hard time"
Is this true? I don't know, but I surely would like the opinion of somebody working for the SEC.
I personally believe that more good comes to those that convey the highest degree of professional standards....and that more people are out there to fight off those where the message is obscure.
That the message is obscure doesn't necessarily mean anything is wrong...but why is the message not clear? Why aren't you trying harder to conform to general business practices and to look the most trustworthy in others' eyes?
Perhaps I'm too critical....but really, does anybody believe this is the way to run businesses? Diluting 20% in one year, repackaging results that aren't real profits as profits.
When is the discussion about Musclepharm gonna be any different?
It's necessary to repeat to get the message clear.
Excessive dilution that doesn't create shareholder value isn't sustainable.
My comments didn't make the stock drop after 3rd quarter results were reported....the stock dropped to $9.23 all by itself because profitability wasn't sustainable and because Brad received 500,000 shares (1/3 of the shares issued to employee compensation)
Before that, the stock dropped after Sydney Rollock's resignation.
So, dilution and profitability....that's what it's all about. I'm the wrong guy to blame...it's Brad you need to blame. And if you are an insider, Brad may not be your friend either, as the shares he issued to you might become worthless one day without profitability
hopefully this applies to smaller companies under investigation as well...
http://www.nytimes.com/2013/06/22/business/secs-new-chief-promises-tougher-line-on-cases.html?pagewanted=all&_r=0
SEC is our friend, hopefully we can get rid of the CEO and other shareholder unfriendly executives once and for all.
We need a Carl Icahn type of guy among our investors...
For the majority of public companies you don't need such a character as the top management does much better without any interference from investors' side.
Musclepharm is screaming for investor activism though.
I love the Israelis and New Yorkers here in Miami Beach, they just don't put up with any BS whatsoever...If they think you are an idiot they say "Drop Dead!"
I wish somebody tough like that would participate in the conference calls....I'm tired of all these punching bags with eyeballs, asking stupid questions and getting dumb answers.
We need some Israeli or New Yorker screaming to them: Get outta here!!
I believe executives should be paid well for creating value to shareholders...unfortunately, I don't see much value creation to musclepharm shareholders right now.
All these insiders and cheerleaders, please tell me what value that possibly could be created to shareholders with the current business model?
Bring it on!
still, Musclepharm has been diluting us to death....it doesn't look good to creditors and investors doing that.
If employee equity compensation is cut down to the minimum over the next few years and endorsements are paid with dollars....then you may have a winner...only if.
There is promise in the fact that Brad got his 10% ownership now, there are enough of high profile endorsers for a company with revenue less than $500 million and the fact that Musclepharm needs the good standing with investors and creditors to secure financing.
Perhaps there was a reason to all the madness this year.....it was all about bringing Muscleharm in position to be uplisted to Nasdaq in the future. Brad probably knew that the SEC investigation wasn't gonna end in 2014, so he could just as well dilute now.
it's hard to tell as the 75,000 grant to Sydney Rollock was called "initial"....That surely gives the impression that executives at Musclepharm can expect to eat freely from shareholders table for a long time.
Next year, Musclepharm may become an $18 stock but it may just as well become an $8 stock...Dilution and profitability are the ones that will determine the outcome...along with Nasdaq uplisting and closure of SEC investigation. You could expect a sudden rally after closure of SEC investigation followed by either selling or buying dependent on the dilution and profitability situation.
I think there is a lack of confidence in the management.
The promise of profitability this year was all BS. There is no profitability whatsoever when you exclude one time items.
The employee incentive plan gave 1/3 of the shares to Brad and 5% was wasted on a departing employee.
It just doesn't look good.
Reading the next shareholders' letter may feel like reading next page in a story book.