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I think Musclepharm makes more money on the powder....and yes, there is a lot of competition in powder...in particular from Optimum Nutrition and Cellucor at the moment...but also from the ones like Cytosport at Costco. Costco seems to favor Cytosport and Premier Protein at the moment...it really gives them lots of consistent space.
Smaller brands like Cellucor and Musclepharm have to fight for the space at big box retailers, as they probably try to squeeze them a little on the price. Glanbia and Post Holdings got more power as they got more to offer big box retailers in terms of range of products and guarantee of delivery.
The Italian business university Bocconi got an entire course named Trade Marketing...dealing with the aspects of getting your products into retail stores...it's a struggle for smaller companies as the larger retailers squeeze them hard on the price.
Japan is famous for import barriers...so is China and Brazil.
I mentioned Turkey because there are so many young men there...and Turks are known for their bodybuilding and weightlifting traditions.
I know that you should always partner with locals, I got a Master's Degree in International Business. You should however open your own sales offices in key markets when certain sales goals have been reached....and then only use agents, distributors in less important markets....
Musclepharm got a concept it could replicate globally...so down the road it really should consider looking for contract manufacturers in other places of the world...perhaps China, Brazil, Turkey...whereever it got lots of sales potential but many import barriers
I have no problem with shares issued to Brad or a sales president making sales go up 100%....but the likes like board members and CFOs given too many shares is probably not such a good idea...20.000 shares for a board member is plenty...that makes him/her sufficiently independent.
Those phd scientists coming up with new great products...I haven't seen them receiving any shares...but Cory, because he is the buddy that started Musclepharm, he deserves a lot of shares.
I have the feeling too that insiders are posting here...in Europe it probably wouldn't be such a big deal...but here in America I'm quite sure that is not such a good idea...and you can in serious trouble for doing so and not disclosing who you are. If much of the communication comes from IPs in Boise and Denver, that should be a red flag.
I haven't sold my stocks yet...but my suspicion is that we will see a lot more dilution than whatll make sense for shareholders going forward...The dilution may be beneficial to the insiders whenever some other company acquires Musclepharm....otherwise, it will kill the stock forever.
More plus 4% dilution next year and MSLP will be toast.
what happens if an insider is caught writing in this forum?
creating shareholder value is not done by diluting your stock or having your company investigated by the SEC.
also, outsourcing manufacturing, logistics, international sales and all marketing can be problematic....as you get the deals done but you make very little after the middle men have been paid.
I believe in the Jewish philosophy...we don't need a middle man, a jesus or muhammad...no, we cut away what is not needed and get to the essence of things...that means lots of $$$$$
Musclepharm is not highly profitable business....Musclepharm pays huge salaries to a few coordinator who have almost everything done by others...
It's a bit like an estate attorney, he is paid well to pay the funeral service, to pay the accountant and to pay the court probate fees....What exactly is done in-house by Musclepharm?
Modern companies are to some extent like that...but Musclepharm is a gross example of inefficiencies...of non business school educated managers paying outsiders to do everything ....Somethings are cheaper done in-house...like manufacturing of powder products.
Well, Im sure cost will go down....but thus far...very inefficient operation by Musclepharm
correction "how many stocks MSLP bought back this year"...I believe Musclepharm bought back at some reasonable prices.
Musclepharm is a great company with a great future....The management is incredible hardworking and creative...but the management lacks trustworthiness in the investment community because of some badly advised actions in the past. Compensation gets all the attention when a company is under SEC investigation. First assumption by investors is that the people behind the company are greedy....even if they just want to be paid fairly for their work.
Brad did not wrap things so nicely as he should have...no, he gave the impression from the onset of this year that management gonna be rewarded generously...almost in the same sentence he mentions the ongoing SEC investigation.
Musclepharm owe the investors to get that SEC investigation concluded and implement regular compensation plans similar to other Nasdaq listed companies. There is not so much to reward until you cease being listed over the counter.
now i will get a response about how many shares Musclepharm bought back last year...again, it doesn't make any sense to buy back shares and issue new ones at the same time...it is a little too creative...and it looks bad...Pay people salaries with money not shares...Then after the employees paid taxes, they should buy stocks in their own company if they are convinced it's so great.
Some stock options are normal for any company, but you never announce plus 10% employees incentives plans...which made the stock dump to $6.
..good for me though as I bought down low, but just a horrible action.
seems like mentioning the employees incentives plan is a taboo...Fact is that there was A LOT of shareholders voting against it...Fact is that this is a ghost hanging over Musclepharm limiting it's upside potential.
With this ghost still hanging over the stock, I believe minus 50% is more likely than plus 50% ...Any dilution above 300.000 shares will be deemed excessive with 1.5 million shares added last year to employees plus 450.000 shares to Tiger woods...I mean, that ain't cool!
In particular Tiger Woods was a bad decision as he is a bad name to be associated with and as he is completely irrelevant to Musclepharm.
Musclepharm needs to get rid of these three ghosts
1) Lack of profitability
2) Excessive dilution of stock price
3) Sec investigation
Whenever these 3 are gone...which could be next month....then the sky is the limit...until then $18 is most likely the limit.
I think the first ghost is gone already as Musclepharm most likely will be posting profits going forward. A guidance that doesn't understate reality would indicate less dilution. If management wants to dilute, it wants to announce a huge jump in earnings AFTER announcing a highly dilutive employees incentives plan.
Working hard on getting concluded the SEC investigation would in itself prove that management wants to act like a Nasdaq listed company, and not like the Fed or bank of Japan, Argentina...printing money.
unfortunately, sometimes management wants the stock to tank when it has dilutive thoughts in mind....so, any realistic guidance (which should be positive)...should make the stock rally.
Yeah, i think the guidance will be the key driver going forward. Musclepharm has a bad record of underestimating earnings going forward...which is a negative (even if better than overestimating).
A positive guidance and the stock could pop to $20...a highly conservative, understating guidance and the stock could tank.
this probably means less space for premier protein....hasta la vista, Post Holdings!
correction When somebody suggests that Musclepharm got too Many SKUS I would disagree.
Musclepharm really has very few SKUs compared to the competitors in the mass market segment. Clif Bar, Quest, Premier Protein and Muscle Milk (Cytosport)....they all got a many different flavors and products.
Clif Bar got multiple bars, multiple gels, multiple protein candies, products for kids, products for women, single serving size protein drink mix etc etc....It is really impressive how many different products they got.
So, when somebody suggests that Musclepharm got too few SKUs I diasagree.....Musclepharm needs all of above...Where is the single serving size protein envelopes? Starbucks is putting fiber and whey protein in your smoothie since last year...and allow you to put it in your coffee too....So, Musclepharm should have much more products for people on the go....I would like to have those envelopes with protein powder for my pocket or my wife's purse.
LOL No, that ain't gonna happen....but, Musclepharm will keep on growing 100% year-over-year.
As the management is very ambitious internationally, I suspect that Musclepharm will expand with production in China and in Europe (Ireland being ideal location).
yeah, and soon Nature Sport plant based protein will be launched at Whole Foods Market too, then Amino 1 RTD at Costco....then Dropz and lots of other good stuff....which all translates into $$$$$
Musclepharm, Arnold and Walmart are all gonna make a ton of money on this deal. Yesterday, I bought an electric roaster oven for big parties.....An 18 quart electric roaster oven at Sears for $43...same $43 is what Walmart is gonna sell some worthless powder in a small container for....Being in the business of selling worthless small powder containers is better than selling electric roaster ovens.
Im sure the endorsements are going to be used much more going forward. Musclepharm has gotten into big box retail...so in order to reach the $500 million revenue goal by 2016...Musclepharm will need a hand from it's endorsers
I doubt there is much more difference than $3 between what Walmart pays and what GNC pays to Musclepharm. GNC discounts everything and sells a lot through the Internet....Walmart is a different kind of business, it operates with ultra slim margins. Also, some people just don't care what they pay....in particular those that shop in the malls, young people with good paying jobs and those that are lazy.
I mean Kohl's is charging double what Marshall's, TJ Maxx or K Mart charge for similar products...Kohl's just give you a little more convenience....same thing with GNC..the stores are small, the service is high...lots less stress than driving to the Walmart store in not so great neighborhood, then walk to the back of the Walmart store.
Don't get me wrong, Walmart will sell lots of Arnold Iron Whey...but most of it will be to types likes 21 year old roofer Carlos from Fresno, California that never goes much to the mall or John from Newark NJ that does paint jobs and shops daily at Walmart.
the price should be $17-20 given recent news....there hardly could be any better news than getting into Walmart and Sam's Club with big bulk protein powders...that means lots of sale and lots of $$$$$. Protein powders are the high margin products.
The Combat Crunch and the Coco Protein RTD are quite exciting products too...so my guess is that we would have been in the $17-20 range by now, had the overall market been more bullish.
The Audit Committee back in November 2013 kind of indicated that there weren't much into the SEC investigation other than discussions over chosen accounting principles for some minor amounts in the $100.000-200.000...nothing major and nothing done in bad faith.
Gary, the former CFO is gone...and I believe that really fixed the problem.
Proteins are trending in South Florida...Ive noticed that more of the smoothie juice bars are offering protein smoothies now.
Also, Ive noticed that lots of old people jogging are sucking up protein gels....something I did not see much of a few years back.
whey protein only costs $1.5/lbs..so as long as Walmart sells a lot there should be no concern.
Musclepharm's litigation insurance paid everything....so caso cerrado!
Arnold is endorsing the product....so what's the problem paying him a little for each sale?
your reasoning is getting weaker and weaker...The SEC monitors all public companies with no exception.
I'm quite certain that the SEC will not keep the ongoing investigation open for years over some matters that appear to be good faith errors.
it is all about trends. right now coconut water is trending within carbs...emerging trends within carbs are purple corn, purple potato, quinoa, oats..
Don't worry, Musclepharm doesn't compromise when it comes to quality. Musclepharm always deliver the best filtrated, purest quality you can imagine...Im confident the Coco Protein is a winner
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IMO, target price should be $25 given recent news...Musclepharm can easily add another $100 million in sales with new product launches and by adding Walmart, expanding at Costco, GNC and Internationally.
Also, as Musclepharm litigation insurance covered all legal costs of the SEC investigation thus far, it appears that Musclepharm has been in good faith in whatever wrongsdoings it has committed. The blame was placed on Gary, the former CFO.
This news of Arnold Iron Wheyâ„¢ and Arnold Iron Pump being sold at Walmart should have made the stock jump $5...considering what thatll mean for Musclepharm in terms of revenue.
Im quite sure that Musclepharm's liability insurance doesn't cover any bad faith litigations....If you intentionally does something wrong....guess who is gonna pay for your legal costs?
if management in a small company under SEC scrutiny spends $2.5 million on buying back stocks....I bet it doesn't expect to pay any major fines...and I bet it's business is going in the right direction.
It is possible that Musclepharm has done a great job defending itself against any claims of wrongdoings by the SEC...I mean, Musclepharm's liability insurance has covered every legal cost thus far as per the annual report.
past the SEC investigation, and after Musclepharm becomes listed on the Nasdaq...it would be nice if Musclepharm turned into a GoPro or Tesla story....that multiples and common sense didn't matter anymore.
As of today, Musclepharm is struggling to trade at a reasonable price given it's high growth and enormous potential.
Musclepharm is expanding in all directions: more products, more brands, more channels, more international markets, more contract manufacturers and own manufacturing too.
Musclepharm got tremendous opportunies to slash costs by internalizing more of it's marketing, distribution and manufacturing activities down the road....to protect itself from competition.
Musclepharm got tremendous opportunies to increase awareness for it's brand with a great team of endorsers and sponsorships...So, I wonder why learning curve and bellator_exec are so pessimistic?
this news is as good as insider trading news....because the management wouldn't buy it back if it believed that the SEC investigation was going in the wrong direction....most important news of the year.
I guess that should add 30 cents or so to the stock price, unless Musclepharm is tight on cash
seems like there is a little bit of rivalry between Ryan Deluca and Jeremy Deluca...which could explain why Jeremy works for Musclepharm and which could explain why Bodybuilding.com now treats Musclepharm almost as any other company.
It's hard working with your brother...and at the end of the day, Ryan had more troubles out of his relationship with Musclepharm than Jeremy.
Bodybuilding.com is run the right way, and it probably ain't in it's interest to make the ties to Musclepharm any tighter....unless Musclepharm becomes the market leader.
To Bodybuilding.com, GLanbia (Optimum Nutrition, BSN, ABB) is the most important relation. Next comes Musclepharm and Cellucor.
Bodybuilding.com does give a quite a lot of room to this clown, Jim Stoppani's Jym brand. I wonder why anybody would buy his products with his marketing being so bizarre?
i don't see anything in your sources that make me worry more than before. the former cfo of musclepharm that left recently is a lot worrisome to me than prosser.
most likely Prosser is an entrepreneurial accountant that is capable of dealing with multiple companies...he is probably a lot different from you and I....same thing with Phillip Frost, he never settles with one company....it's insane, but that's Frostie!
Musclepharm, Iron, Fitmiss, Coco and Nature Sport....learning curve, winning takes care of everything!