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DILUTION...nobody wants it!
Your drink gets diluted and you are unhappy....
The brand of the neon g-string in your closet gets diluted and you are unhappy.
Your hard earned dollar gets diluted and you are unhappy.
I mean, dilution in any shape sucks!
Facebook didn't have much dilution that wasn't tied to raising capital as an example...
If you are a founder that wants to own a big share of the business you started.. Good advice: put your own money into the company and don't ask for too much money from anybody else. Also, don't lose too much money.
Brad feels he is entitled to 10% of the company ...I mean why is that? Didn't he screw up in first attempt?
There are lots of CEOs of much more successful and complex companies than Musclepharm that can do with less than Brad.
buying back of stocks while issuing stocks excessively pretty much shows to institutional investors and creditors that these guys running musclepharm are loose missiles.
the vast majority of companies don't have any significant dilution issues from executive compensation.
and when it comes to marketing, there aren't many companies that would dilute their stock that much to get their products endorsed.
Typically, dilution for such things are 1% or so...and 5% would be considered high....and 10% the max.
Not only that, tell me a company that buys back shares with limited capital to "finance" such dilution?
announcements of further MSLP DILUTION gotta the broken record here.
If there wasn't anything seriously wrong then there wouldn't be any reason to spread the message.
I'm not here to spread negative information about musclepharm.
I'm here to tell the truth to those that don't take the time to get the facts straight.
Musclepharm is a company with high executive compensation. It is a company that spends a lot of money on athletic endorsements too.
Naturally, you would think that such a company was highly profitable...problem is that Musclepharm isn't profitable ex one time items. Also, Musclepharm doesn't have any manufacturing of it's own.
So, how does this company pay for all that? It pays through issuing stocks....OUCH! yeah, I know...not very good!
SEC, institutional investors, creditors, employees and industry experts....everybody is taking notice of this.
Okay, the management build up a semi-strong brand in short time and we are at close to $200 million in revenue....but when will employees be treated well?, when can creditors trust that loans can be paid back? and when can investors trust that the stock won't be excessively diluted?
Really, when will Musclepharm act like a regular company?
the public opinion matters to all companies...that's all I can tell you.
shareholder, employee and consumer rights from a legal standpoint are almost non-existent in America...so, the public opinion on the Internet matters more than anywhere else. In countries like Denmark we don't need the Internet, the institutions and the media work actively for the interests of the little guy.
Internet message boards and social medias expose companies that treat customers, employees and investors poorly....believe it or not, but the masses have gained much more power over the last couple of years.
Institutions and governments often failed to expose and to discipline the bad apples....so, it's fortunate that the Internet has filled the void
Yeah, that one was a great deal. Manziel was well worth the dilution.
I expected that the SEC investigation would constrain the behavior of the management at Musclepharm, making it more shareholder friendly.
I just don't see any change. I continue to see a management that puts all energy towards own interests and towards the customers.
100% support for the strong customer focus...but ignoring shareholders....I don't believe in that model.
It's not so much about listening to common shareholders really, it's about following professional standards and ethics, about changing from within...Start with treating all employees favorably, with conveying trust to your creditors and with conveying trust to lead investors like Phillip Frost.
It's hard to trust a company that is run like this...for everybody involved.
DILUTION should be the favorite topic of any MSLP investor unless the investor believes that stock prices don't correlate with DILUTION.
In most cases, stock prices don't....but when it comes to Musclepharm, you better believe it does....More than likely the stock price correlates more with DILUTION, than it does with revenue and with profits entering 2015
Why would that be so? because excessive DILUTION has become the trademark of Musclepharm.
The founders lost everyting in their first attempt from their inexperience and excessive DILUTION, so now they are entitled to a compensation for that loss?
Something like that is shareholder oppression imo, that's no good!
because I'm not an insider....any more objections?
"There is something rotten in the State of Denmark" wrote Shakespeare....and one or two here believe that's the case.
Still, it is what it is! Musclepharm got some issues when it comes to creating shareholder value....So, all we can hope for now is that there will be a turn for the better next year.
All these stock grants followed by share buybacks and lucrative exits of departing employees....that better stop, because otherwise the Musclepharm stock will be a stock only for dunces.
I agree....but the top management is not necessarily willing to share that success story with you, that's the problem here.
the word "sharing" is greek to them.
does it look good paying somebody $1 million that leaves the company after 1 year? I'm just asking.
I mean, ex employees can always be a pain....and wouldn't it be nice if they wouldn't engage in some frivolous lawsuit against you....but nobody can afford paying everybody a million dollar to avoid that from happening
If you do pay that kind of money, then wouldn't it be fair to ask the questions: 1) Are you hiding something? and 2) if you aren't hiding anything, then why on Earth are you wasting this kind on money on somebody that ain't part of the team anylonger?
Perhaps this is not about hiding anything, but more about making it lucrative for insiders to exit the company....Again, against the interests of shareholders.
Sydney Rollock departing with all his unvested stocks gotta look fishy to SEC investigators...Why would a young company with limited finances not cancel 60,000 unvested shares (approx. $800,000 back in October) of a departing marketing manager that worked for 1 year?
From a shareholder's standpoint you could ask yourself what unvested stock grants really means at Musclepharm? Upon departure, it doesn't seem to very arbitrary who can keep his unvested stocks...As all executives that "resigned" thus far have kept all their unvested shares when they left.
This quote from Glassdoor regarding Musclepharm, pretty much sums up the situation for investors as well. The marketing is strong but in terms of market cap appreciation transforming into shareholder value, little is left to investors....the top management takes it all!
Quote:
“Fun at times but not worth the grind and pay. ”
Former Employee - Anonymous Employee in Denver, CO
I worked at MusclePharm full-time (more than an year)
Pros
MP has fun people to work with and there is a state of the art gym that can be used at the facility which is fantastic. You get free supplements and come into contact with some cool athletes a few times a year. Not very PC place which makes it feel less corporate, more of a "bro" friendly environment. Taking an extra hour to hang with the owners and play basketball isn't a bad way to break up your day.
Cons
There is a lot of talk about team and succeeding together when in reality it's a few people busting their ass and not getting paid their worth. Always asked for extra time and hours to be put in with no real regard for a life outside of the office. A what have you done for me lately place where your hard work is forgotten quickly. Owners make far more money than they should when in reality they could get 2x as much from employees if they really where a "team" and spread the wealth.
Advice to Management
Pay your people their worth. You don't do this all on your own believe it or not. The company doubled then quadrupled in the money and sales and yet employees saw nothing. When you are going from 10M to 20M to over 70M you should reward the people who helped get you there.
Recommends
Positive Outlook
i love reading employee reviews....in particular for a small company like Musclepharm where most of the employees work close to the top management at the headquarters..
It gives me an idea about how the company is operated and what kind of management the company got.
well, if employee, investor and customer opinions don't count, then what does?
of course it matters...as long as there is enough quality data to collect.
when you analyze Internet comments you always need to validate the data looking for patterns of intersubjectivity...to uncover the general attitudes and opinions
Investors do care what employees think and feel about a company.
Check out Costco stock versus Walmart stock.
Check out Starbucks stock versus MacDonald's.
I'm not saying this because I was born and raised in Social Democratic Denmark....it is what it is!....when you treat your employees better your company does a whole lot better.
Same thing with Coca Cola's recent debacle regarding it's employee compensation....Coca Cola's management was forced to spread the wealth to lower ranking managers in the plan to a greater extent.
If the whack jobs are those that write about dilution....I take that as a compliment anytime.
I didn't come to this forum to be popular with insiders, so please continue insulting me.
It's a fact that Musclepharm's dilution was 20% this year and it's a fact that Brad has been granted 10% ownership stake in 2 years....Furthermore, it's a fact that capitalization was reduced this year through share buybacks to "finance" the excessive dilution.
Now make your expectations for next year!
In general, all publicly available information about a company is analyzed by institutional investors and hardcore traders, be it Glassdoor, Investors Hub, facebook, twitter, whatever.
What investors, employees, customers and others think and feel about a company give a good idea what is going on with that company. The public opinion is higly relevant...I wonder why you would think it wasn't?
interesting reading about whacks....
http://www.lightshouse.org/things-sociopaths-do.html#axzz3KPjDG9kc
Musclepharm is selling well, so that's not the main concern. Costs are too high and dilution of stock is too high.
However, in 2015, there should be much less dilution and we should get closer to business activity that acquire self-sustaining viability.
You got a valid point there, Musclepharm definitely needs to cut out redundancies going forward....
Investors need to forget 2014 and look forward to next year.
Hopefully we will see less share buybacks and employee incentive plans and see more productive things going on at Musclepharm.
Otherwise, it might be time for some activism from investors' side....
Johnny Manziel appears in Snickers commercials, so he is a good name....I just don't think you are going to hear much from him....as he got warrants to buy MSLP shares at $11.99 according to his agreement with Musclepharm.
I doubt MSLP will be worth that much before Brad Pyatt gives up on maintaining his 10% ownership and decides to let go and to focus his energy on creating value for everybody
The CEO of Musclepharm became a 10% owner almost from day one...while Monster Beverages' CEO became a 10% owner in 22 years....the later being a billionaire today.
Now I wonder why institutional investors aren't lining up to invest in Musclepharm?
sharebuy backs and employee incentive plans have disappointed institutional investors...there is nobody to instantly pick up 10,000 shares at $10.25...not really a good sign!
please stop spreading misinformation here!....the market was closed so nobody acted on the news...but had the market been open, then somebody might have acted
Thanks, I looked at that too after having responded to the joker and realized that I most likely was subject to a hoax.
Tiger Woods might be worth the money for Musclepharm even if he retires from the sport of golf.
To some extent, in all fairness he is a sports legend and he will be remembered as such by most people, even if some will never forget..
George Foreman and Michael Jordan were much more valuable as endorsers after they retired than they were during their sports career.
I think protein bars, named MP Green or some other name that is golf related could become a hit if Tiger appears in the packaging and advertising.
Right now Tiger Woods name is a little weak though as he is struggling with playing golf and struggling with getting past the affairs he had 5 years ago. Also, Tiger Woods has never been too friendly and that is starting to piss some people off. Michael Jordan was never too friendly either...so, it might not mean that much.
might be there is some filing that pre announce intent to sell during a period of time...an announcement of intent that doesn't need to be used.
Might be Cory would like to sell at $16 if that is the price in January.
I need to have this information confirmed. Last year there was similar notice somewhere that Cory was selling like 160,000 shares.
I cannot confirm this anywhere...so, I need to see the actually SEC filing.
Cory is dispensable and he is overpaid...Furthermore, each year at this time he sells huge stock holdings...I'm getting tired of this dude, I'm sorry!
The signal is that the Musclepharm stock is one to hold short term because soon there will be more dilution.
Musclepharm is no Monster Beverages, the executives got no such caliber here....their ambition is to get a big share of something small, instead of getting a small share of something big. The later takes a whole lot more effort and integrity.
In 2015, We need somebody bigger than these characters to squeeze them out, once and for all!
Cory is selling either because Cory is in trouble or because Musclepharm is in trouble.
It's not a strong buying signal when an insider sells 63,000 at $10 after the stock traded at $13 weeks earlier..Perhaps Musclepharm doesn't have the liquidity to pay salaries and fill orders right now.
Cash levels looked terribly low when Musclepharm reported 3rd quarter results. Perhaps this is not first time, Cory acts like shadow bank...getting paid back in ways we don't know.
Well Happy Thanksgiving, the turkey and ham is getting ready. Hopefully, Musclepharm has good Black Friday sales.
I'm up $77,000 with my Musclepharm position right now...far from the $140,000 I was up early September. I did reduce with 8,400 shares at $13.85....and with the money I sold Im up like $15,000...also I repurchased 5,100 shares $1.25 lower...so, I was partially prepared for a downer like this.
With the original money Im up $92,000...$48,000 short of the peak level.
I got more Deutsche Bank and Eletrobras...which I'm happy with right now. I hope that anti dilution protection agreed with private placement investors might prohibit Brad from issuing much more stocks as compensation. It would be strange if there wasn't any such protection really.
If you feel you did something wrong and you fear that you are about to get caught...then it's probably a good idea to be prepared
He doesn't have any friends at Costco, apart from the other guy in the bakery.