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the message to send in a shareholders' letter should be: We will pay ourselves some decent salaries and bonuses based on performance....and it ain't going to be stocks this time as last year's program covered us for this year.
Vupti, and the stock might become an $18 stock...if not...I think we will be talking about a penny stock.
Nothing is given...sometimes, sanity rules...sometimes it's naive to think bad habits will go away. Diluting like 20% in one year has no place though.
I only respect the Johnny Manziel deal and the board member stock grants....because I know theyll pay us back.
I'm okay...It is all about the shareholders' letter...more dilution and this management would very well be in trouble with Frost and Wynnefield Capital at current stock price level.
Frost bought his last MSLP stocks at more than $10 back in 2013...so he expects at least 10% yearly return on that...he is a freakin billionaire! Mr Frost is not a nobody to MSLP...he masked a transfer of wealth, by letting Musclepharm buy assets from Biozone at a bargain price.
Wynnefield Capital bought some stock at average price around $9....Wynnefield Capital, we are talking about an activist investor that may attack the top management if necessary.
Furthermore, even if the board is on the receiving end of stock grants....it still got some power by owning quite some stocks....so, the ceo of Musclepharm, Brad Pyatt better not act too alternatively....because they might give him the boot to protect their stock holdings, and then look for another Ceo.
Making the board strong is our advantage....You know, when you pay people with coupons....you better make they don't expire.
pretty much, Musclepharm got the recipe for running out of cash.
going over 13.5 million next year and we might have a worthless stock....only positive cash flows comes from financing......so diluting such a company seems like a bad idea....it's like going to the pawn shop with some mickey mouse plastic ring from the bubble gum vending machine.
I guess Brazil is one of the greatest foreign market...and that manufacturing there might make sense as tariffs on imported goods are high...Financing of any Brazilian acquisitions through more dilution will hurt us though...To the advantage, the Brazilian real is very low right now and asset prices are hurting with the high inflation and the worst drought in 80 years in the Southern parts...So buying some protein powder company in Southern Brazil right now probably comes at a discount...and it could provide the rest of Latin America with products.
Brad Pyatt should be the next Chief of Sales and Marketing...and somebody more seasoned should become Ceo.
I feel investors would appreciate such a move because Brad Pyatt got lots to contribute in terms of branding...but Weimar Republic, no thanks! Mutti Merkel, that's more like it!
80-100% growth in revenue but 10% growth in stock price....so when we get 10% growth in revenue...then what? minus 50% in stock price?
Where is the compelling store from investors in this company that eventually will be owned by athletes and top management the way things are going...
I don't understand the strategy?
"Musclepharm is going to keep on investing for the next three years" what??? with what money?
No creditor or investor wants to deal with a company that continuously dilutes the stock to the extreme...that is just not a safe place to be.
that's what separates Schiff Nutrition from Musclepharm. Believe me, the old Ceo at Schiff Nutrition would have loved making $6 million a year versus $2.8....problem is that wasn't possible. Had he done that, Schiff Nutrition would have been an entire mess from a financing perspective. There is no such thing as an ATM company...companies are expected to pay comparable salaries, in particular when they are unprofitable ex one time stuff.
without dilution....i'm not sure the stock will fly.
Young and overly self confident entrepreneurs that think everything is possible...many gets impressed while some feel more clarity is needed.
Musclepharm's long term strategy is up in the air...."We look at vertical integration in each market" What??
So you conduct a cost-benefit analysis in each market, considering internalizing versus externalizing in each country?
What about the Biozone acquisition? We thought that was gonna manufacture more than gels and liquids? I don't know what gels and liquids are?....are we talking about dandruff shampoos?
Musclepharm went from $8-9 to $10 in 2014...hurray!
Ceo compensation performed a whole lot better!
Brad Pyatt wants too much with too little money....he thinks diluting stocks is the solution.
What he doesn't understand is that dilution hurts financing flexibility and investor trust....You cannot screw investors over and over again...Investors want to be part of top line growth too...not just the top management...so does other hard working employees of Musclepharm. So, much for incentives....half million shares out of 13 million shares to Ceo....are you out of your mind!!!
A fair Ceo compensation at Musclepharm is $2 million a year...It's a great compensation for being Ceo of a supplement company that is under SEC investigation and that isn't profitable yet.
Rapid top line growth is not sustainable when you have lots of receivables and little cash at hand.
He needs to go!
The Brazilian acquisition he talks about....shouldn't he have spent the stocks on that instead?
I mean, Frost might back out next time he asks for a round of financing....he limits his financing options and the company gets a bad reputation for being the Weimar Republic.
Musclepharm better not dilute anything next year....Brad has been paid for at least 2 years in restricted stocks. So there is no way he can justify more. If this was some Uber Doopey Palo Alto social media company....hell yeah, he can write himself a $20 million stock grant....However, Musclepharm is never gonna award investors with billions in market cap. He told the ideal model company was a supplement company out of Salt Lake City, Schiff Nutrition....Schiff Nutrition never paid these kind of salaries....and believe me, mormons are not so humble as you might think, they got lots of wives to support....and 10% goes to the Church....I'm sure they paid quite so competitive wages.
It was restricted stock award, ouch!!!
Compare that salary to the seasoned ceo of Schiff Nutrition prior before it was bought:
http://www.forbes.com/profile/bruce-j-wood/
ouch ouch ouch!
I should sell at $9...Musclepharm is a worthless stock....unless Brad Pyatt is pushed away by activist investors.
Schiff Nutrition was growing slowly but it was profitable....it wasn't some gamble for a young kids aspirations to become rich like Mark Zuckerberg....Musclepharm is not profitable....and what's worse, cash flows are all negative.
If it wasn't for some nice assets given by Frost through the Biozone acquisition....Musclepharm would have liquidity problems right now.
The right way to say thank you to investor Frost is by diluting the stock to this extent? Nobody needs a plus $6 million compensation for running a company that sells for $180 million...it's nuts!
the SEC filing said Acquired at $13?
I bet Musclepharm is worth more than $13...because, Brad wouldn't double his ownership at $13 if he thought it would be worth less.
Dilution is just out of the question with such a commitment....it just makes no sense.
Most likely the investments in manufacturing and better logistics is what triggered this purchase....coupled with fact that an upcoming nasdaq listing could be very positive news for this kind of company.
I guess the excessive dilution is over...thank god I didn't sell today!
Tiger Woods might be a negative association to the Musclepharm Combat line and the Arnold Iron line.....I cannot imagine a young dude buying MP Combat because of Tiger Woods.
Such a shame that the Nature Sport brand is delayed....Tiger Woods would be a perfect endorser for this line....
channel stuffing or channel shortage?
I'm not really sure that a shift to mass market retailers should lead to channel stuffing. Typically, major retailers don't take more inventory than necessary...so, I doubt that channel stuffing is the case here.
Also, Musclepharm sales have not really crashed at any point.
I personally expected $40-45 million in sales for the third quarter as that was in line with Musclepharm's guidance for the revenue of the year. I mean, things are tight overseas and domestically, there has been a lot of competitive pressures lately from Cellucore in the pre-workout segment and from Isolate whey protein products.
When I've been to Walmart, it seems like Walmart is the one that has been channel bluffing....Arnold Iron has been sold out.
Musclepharm will still be selling for $170-180 million this year excluding Biozone asset sales....so not that bad really in an environment with a strong dollar.
Musclepharm faces some headwinds....and it surely needs some overhaul of management....but a lot of things can be fixed...like the branding of Iron line. There is no need for Musclepharm to offer something much better than Six Star and Body Fortress at Walmart. The customers there cannot tell the difference....and they don't care....they just want to buy cheap protein.
skippy, you sold the stock...what's the story?
The hurdle is the shareholders' letter.....there is really nothing else to do now other than hoping for the best...It's too late to sell now
pursue other avenues....yeah i know my english stinks...and it didn't get any better after i moved to miami...Really, English isn't spoken here.
what's up with fuse? do you think they will give the rights to their products to Musclepharm now they are finding other avenues?
Musclepharm might make $200,000 on Fuse products a year....so it really gotta be a freebie...
Musclepharm bad decisions:
1) not having two lines of Arnold Iron....like a Green limited edition brand for specialty retailers and a Blue label brand for drugstores and mass retailers
2) signing Tiger Woods that doesn't represent anything Musclepharm stands for
3) having ineffective equity compensation plans that don't motivate and retain talent ...essentially all stocks granted to employees will eventually be released no matter what...meaning Musclepharm's labor cost of completely out of control and musclepharm got no incentive mechanism...It doesn't pay going the extra mile...because everything will be sweet and dandy regardless.
4) having messed up packaging for Fitmiss....is it a pet food container or is it a supplement container? is this product suppose to be for men or for women...I'm confused?
kind of getting a known fact that Musclepharm lives check to check while diluting the share to the extreme.....scary management style for investors...I hope the company will be bought by somebody pretty soon, hopefully this afternoon.
Musclepharm is a strong buy...if it wasn't for the January shareholders' letter coming next...that might not be the best reading when it comes to further dilution....I believe that's why the stock might tank until next Summer....I'm down $40,000 today...shitty performance for sure....still, I'm up $80,000 on my investment this year.
If the 4th quarter results and the shareholders' letter ain't too bad reading...then the stock could go to $18 by February...
The unknown is the ever diluting executives, the shareholder robbers
Flagship stores and/or flagship gyms seem like a must with so prominent athletes signed, so many diverse brands and the UFC sponsorship.
When you say A, then you must also say B.
Lincoln Rd would be a great location for a flagship store or gym...but a hipster up and coming location like Williamsburg, Brooklyn might be great too....the rent would be a like 1/5 and still you would be cool.
little dilution going forward in January shareholders' letter and the stock will most likely fly....otherwise, I'm afraid we are looking at a penny stock, most likely a busted out company in a few years as Musclepharm won't be able to finance itself....it cannot get credit, it cannot raise capital at reasonable cost. A company that cannot work out paying salaries in paper money, that doesn't look like a going concern to me....it looks like trouble....and what will the stock be worth?
the goodwill is pretty low with companies like Dymatize selling for p/s = 2....Musclepharm is not Gaspari Nutrition....it got some valuable following, in particularly internationally.
really, the goodwill is more like $60 million than $6 million.....goodwill can deplete any moment though, so let's hope Musclepharm doesn't fck up too much going forward.
Musclepharm will report better number going forward as it's new channels will be reflected to greater extent.
Musclepharm is facing increasing competition, so it doesn't have any other choice than going the branding route, the market expansion route and the multi point competition route...meaning it puts pressure on competitors across multiple product category markets, multiple channels, multiple locations...Musclepharm doesn't quit....it takes up the fight, for eventually improving it's pricing power and to eventually conquer market share.
Rome wasn't built in one day, give it time!
Frost is not particularly interested in real estate as far as I know.
He owns the Ivax building where his old company operated from years ago, 4400 Biscayne Blvd in Miami...I believe this is where he operates his Opko Health from...also, I believe this is where hedge fund manager/billionaire Bruce Berkowitz got his Fairholme Capital.
I guess it's where Musclepharm got it's miami representation through the Biozone acquisition...
Every time I pass by this building, I'm wondering how any billionaire found his way to this address....The building might have been cool back in the times of Miami Vice....but C'mon! This neighborhood is not the greatest in Miami. Only other office building in this part of town is the Bacardi building at 2100 Biscayne Blvd....this is more downtown miami...and Bacardi moved it's headquarters to Coral Gables a few years back. Coral Gables is a nice part of Miami, Biscayne Blvd ain't!
the musclepharm gym and musclepharm flagship stores...such things are not meant to make money in themselves...they are meant for branding purposes....primarily for social medias and commercial online videos and photo shoots.
Musclepharm is pretty much up against nothing....as other protein powder companies got no branding to speak of.
In a way, the Musclepharm brands got similarities to the Nike brand with it's loud message and multiple endorsements....where Post Holdings brands are more similar to Jockey underwear, Everlast and other mass market staples brand.
Really, Musclepharm is the only supplement company with interesting enough brands to support flagship stores.
http://www.brandingstrategyinsider.com/2014/07/retail-brand-strategy-role-of-the-flagship-store.html
what about flagship stores?
I noticed that cosmetics company KIKO from Italy got a flagship store at Lincoln Road in South Beach....like Tesla got a showroom there and Nespresso got a coffee shop (full of people).
Lincoln Road, full of Brazilian and European tourists....and lots of very self centered and trend setting fit young people, straight and not straight....I mean, this would be a great place to show what Musclepharm is all about.
I know the rent is like $40,000 a month here....but it might be worth it, just for marketing purposes.
strange how the price adjusted prior to the release? the closing price of today seems to have built in most of the unrealistic expectations of some
Musclepharm got some accounting issues....that explains the late release.
The release was not the greatest, but not the worst either...Musclepharm is upholding a significantly higher sales than last year....and it doesn't rely so much on bs internet sales...that ain't so damn important these days with low gasoline, and consumers spending lots of $$$ at the big box retailers and at the malls..
The result and guidance is okay.....Musclepharm got the holidays ahead of it...and consumer spending is up, gasoline is cheap....Walmart doing fine, Malls doing fine...and most importantly, Europe is bottoming out...Furthermore, Brazil got inflation under control with recent interest rate hike...so, might be it won't get any worser.
I forgot to mention Premier Protein, another Post Holdings brand..
Arnold is a huge asset to Musclepharm....well worth the royalties and stocks.
Manziel seems like a fair deal as he endorses Snickers and other great companies.
Tiger Woods could become a huge asset to Musclepharm if he appeared in nationwide advertising alongside Manziel and Arnold.
Musclepharm may need to spend more on advertising in the future. Post Holdings' TV commercials for Fiber One are quite good......so, I guess Dymatize will be promoted aggressively too, given Post Holdings spent $380 million on that acquisition.