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MP Energy Sport does contain caffeine...in an amount higher than Red Bull but lower than Monster Energy....
so, it has never happened that a stock held by seasoned investors dropped to $4 or 20 cents, because of some panic in the market, and then later rose to like $30?
Try take a look at Trinity Industries, Select Comfort and Perry Ellis.....I believe Trinity Industries traded at $7 a few years back, Select Comfort at 20 cents and Perry Ellis at $3.....look where these stocks are today.
The market cap of Under Armour was less than $800 million in 2010....how much is it worth today?
Bellator_exec might not have made any money, we have no proof he ever traded the stock...
and you are smarter than Phillip Frost? lets see who is laughing all the way to the bank when stock price is $35 in 2016.
Pretty much Musclepharm is gonna transform into broad based supplement company with capstone nutrition takeover, taking down Nature's Bounty and Schiff Nutrition.
Phillip Frost is pretty much the best small cap investor and small cap CEO on Earth.....almost 90% of the small companies that he gets involved with achieve market caps in the hundreds of millions of dollars, if not billions of dollars.
All his wealth came from small cap involvement, even his Teva position now comes from him selling IVAX to Teva for seven billion dollars, and being paid in stocks.
Continucare, IVAX, Castle Brands, Chromadex, Cocrystal....and ultimately Musclepharm....all of them jackpot.
One speculative investment into Fuse Science that he lost on, but transferred endorsement to Musclepharm....that makes him an amateur of an investor?
Fuse Science is still trading, and who knows....those that invested in it may get more back keeping it over the long haul... Nothing I would worry so much about if I had followed Phillip Frost through thin and thick.
Biozone investors did pretty well, and that was for a company with no products or assets whatsoever, apart from what it sold to Musclepharm.
I'm honestly not following DROP, but as far as I know it's still alive....though at a slightly lower price, I presume.
Phillip Frost has doubled his wealth over the last few years, to $5 billion.
Phillip frost, an accredited investor I presume, still owns 60% of his original position, meaning that he predicts that there is 60% chance of the stock going higher than $14.
the mentioned sales occurred in q3, not q4.
The chief of marketing and sales resigned 2 weeks into q4 for not responding proactively to GNC and Vitaminshoppe complaints of Walmart expansion.
Walmart doesn't charge any slotting fees, but the catch is that specialty retailers won't carry the same products as Walmart.
The chief of marketing and sales f'cked up a lot for Musclepharm....perhaps he got carried away testing the botanical contents of various local products which precluded sound judgment and common sense, who knows?
because you guys trade based on email alerts, Musclepharm becomes one of those stocks that drop to $4 and then rises to $20 in 2 months....I truly look forward to Nasdaq uplisting, and hope for less of these short term traders, and more mature long term investors.
I think Nasdaq uplisting is forthcoming...which I assume is gonna be through a reverse merger Phillip Frost style.
The company cleaned up it's balance sheet, it's close to profitability, it's an exciting company with prominent endorsers and interesting products, it's endorsed by Phillip Frost....and it's ready in terms of corporate governance, and in terms of clearance of legal battle, concluding the SEC investigation.
The communication department needs to be enhanced as well.
Better accounting is definitely gonna help the stock price as it will improve the inventory and liquidity management.
But, the numbers are not everything to MSLP investors....The company's communication gotta always send the message that the company is one step above competition (without putting down the competition like Jym Nutrition and BPISports do).
Pictures with new products in convenience stores in Michigan and Dominican Republic are not impressing anybody....that doesn't give the impression that the company will soon reach $200 million in revenues.
The enhancement of the accounting team means that you can trust the numbers....It's given with March 16 announcement of Q4 and no comments....that Q1 results aren't gonna be the worst.
The executives already knew 90% of the numbers, and they are gonna let the Q1 numbers speak for themselves.
More professional people, means more professional decisions regarding inventory and liquidity management.....so, all this is only a plus and reducing the risks for shareholders.
The stock will get past the $6 soon and then it will be uplisted to Nasdaq.
I agree the current set of shareholders are not particularly knowledgeable about long term investing....and Musclepharm has been sending some mixed messages to these short term kind of investors, which has created excessive fluctuations in stock price.
It wasn't pretty that Musclepharm burned through $8 million credit line by buying stocks for $2.5 million, close another credit line of $2.5 million....making a burn for operations of $3 million appear like $8 million. Unsophisticated investors get scared even if not so bad.
Improvement from Q4 to Q1 was told to us implicitly during conference call....but no questions were answered because of investigation against company. Musclepharm didn't tell us that it would answer questions during next conference call....but made it clear, no questions were welcome. Unsophisticated investors get scared even if not so bad.
Right now, Musclepharm clearly got some better numbers to present us for Q1 or it got some solution coming, as it knows the consequences of posting negative results.
Still, unsophisticated investors are worried.
Nothing to worry about, Musclepharm is the next generation supplement company.
The endorsers are not bad, the products are not bad, the manufacturing is not bad....the communication flawed at times and panicking....with pictures from test marketing gas stations being posted on a daily basis, making unsophisticated investors believe that the company got no sales, when it got a wall at GNC and some damn good product positioning at Costco....and always overall good sales at bodybuilding.com.
Muscle Milk was endorsed by Aaron Hernandez....but the communication department at Cytosport was effective at killing the news....I wish Musclepharm had such a communication department.
Pretty much everything Musclepharm does when it comes to it's business strategies seems to have undergone some serious thought process.
When it comes to communication on social medias it does seem like the company doesn't coordinate that with IR and professional PR people.
Musclepharm needs to send clear messages to investors and the general public, because it got some issues with it's reputation after Jim Stoppani, the big instigator of trouble, insinuated that many competitors' products were protein spiked....which ultimately lead somebody to sue Musclepharm even if it didn't do that.
Unfortunately, bodybuilding.com is endorsing saint Jim, making it really hard for Musclepharm to restore it's reputation as the conversation goes on.
So, Musclepharm needs to think about everything it says to the public, every picture it sends....because if something seems to be staged or raise any questions....then it shouldn't be posted.
The MP Sports Science Institute is a good initiative....but, if Musclepharm's twitter accounts post things that may ridicule Musclepharm any further....then what is the point?
Musclepharm is doing a lot of good things in Denver, but those guys in Ohio are creating lots of trouble for the company. As, I have said before....all communcation needs to be controlled from the headquarters.
The message should always to be that Musclepharm is one step above competition.
Most likely, it will be the online and brick and mortar specialty retailers and the mass retailers with no slotting fees where Musclepharm will go initially with it's RTD and protein bars...unless the specialty retailers have a problem with selling the same products as the mass retailers.
It's a balancing act for all, because the specialty retailers benefit from brands that are well known by customers, but on the other hand cannot tolerate competition that kills their own sales.
As RTD aren't really the most important categories to the specialty retailers, I think they have less of a problem with these products being carried by the mass retailers.
When it comes to protein bars, it might be that Musclepharm will have to follow the competitors to the convenience stores and pay whatever slotting fees they demand. I'm not so sure it is so much for protein bars and energy shots, considering the rapid growth of the companies focused on these products. For energy drinks that may be some slotting fees to pay, but the question is whether it's so much of the interest of the convenience stores....as having the most popular brands positioned on the right place on the shelf gotta be more important that receiving some money to carry certain brands, and position them well. At the end of the day, the popular beverages are the ones that draw business.....so, if you are a new brand....you may have to start with a subpar shelf position and work your way up to a better one.
I have bought warm 12 pack Coca Colas many times at 7-eleven with warm Lays chips....I don't see a problem?
It might be different in a place like Livonia, Michigan....but, here you would do anything to not having to deal with the parking lots at the supermarkets. You are putting gas on, you are tired and want to bring home some snacks....the price is not that much of a difference, perhaps a few dollars....which is well worth paying.
Also, after 11 PM, the supermarkets are all closed...and, sometimes you are not near a supermarket.
Musclepharm should probably not follow Cytosport's example when it comes to Bodybuilding.com....not caring about the channel.
Bodybuilding.com is probably a powerful channel to recruit new customers....so, getting Ryan Deluca's endorsement might be worth quite a lot to Musclepharm.
Cytosport has created a really strong product brand name in Muscle Milk, so it's relatively easy for it to recruit new customers. The gossip created at bodybuilding.com might endanger it's success if somebody leads a campaign against it on social medias....similar to what Musclepharm has experienced.
The endorsement at bb.com is worth gold, but the risk of negative campaigns against your company is a huge problem.
That's the thing, Musclepharm is created and run by young people that think different than old people. That makes the company popular, selling a lot of products each day, all year long.
To me the word Hardcore is pornographic....but to 18-20 year old kids, that got an entirely different meaning....because the porn industry has ceased using that word since I was a teenager, watching undressed girls doing gymnastics on the Internet.
All together, Musclepharm is a valuable company that can replace second tier brands like MET RX, BodyArmor, Xyience from day one, and later on replace Red Bull and Monster Energy in places where people are very focused on working out, like Texas, Southern Florida, Orlando, California and North Eastern States.
To me, the three most interesting companies in the sports nutrition industry right now, are Musclepharm, Cellucor and Cytosport.
Cellucor is interesting because it has taken the lead with one product, the pre workout powder, and pretty much left BSN in the dust...and taken market share from everybody else. So, a very focused strategy that has been very successful.
Cytosport has managed to enter with it's muscle milk products everywhere and still maintain some integrity with athletes. It doesn't give a shit about bodybuilding.com, because it doesn't need any bromance for money.
Musclepharm, the most interesting of all....just keeps on spitting new nicely packaged quality products out. Sales go down, and it doesn't give up. For effort, I would give it a 10 out of 10. It needs a little more focus I agree....but all in all, some damn good company!
Musclepharm is a $200 million company and the stock price will probably go back to $12-14 price level by the end of the year.
Nature's Bounty performance is much worse than Musclepharm's imo.
Apart from the Nature's Bounty brand, all the other brands that Nature's Bounty got are a disaster, same thing with their Vitamin World retail stores that look like something out of the Soviet era.
http://www.naturalproductsinsider.com/News/2014/12/NBTY-CEO-Acknowledges-Very-Disappointing-Year.aspx
With all the money it got....it should buy Musclepharm for $200 million outright....probably one of it's best investment's ever.
The Met RX brand has not changed it's freakin products for 15 years.
To me it does....actually, I cannot tolerate it as a supplement....because the effect is too strong.
One time, I bought some red ginseng pills in Boots in London (drugstore) and one pill made me feel like I was having a trip...Ginseng is a very potent substance indeed, explaining why it is at the bottom of the ingredient list.
it's a sports energy drink....and ginseng gives much more of a kick than caffeine....explaining why you need much less of it.
It's true that Arizona ice tea has had some success with green tea + ginseng...but that doesn't mean that Musclepharm cannot have it too.
If it was a caffeinated drink you wouldn't like it too.
MP Energy Sport is the new cool product in the convenience stores...it contains ginseng and green tea, and it is suitable for young people that work out.
Furthermore, Musclepharm got many products to sell through convienience stores not just one.....It got MP Energy Sport, MP Energy Sport Zero, Amino 1, MP Crunch, Muscle Bar.....and as young people want to try something new, they may very well be drawn by these products.
I'm not referring to top line, I'm referring to bottom line....Musclepharm Energy Sport may ultimately contribute $50 million to Musclepharm's earnings per year.
The cost of manufacturing is very little for these kind of products, it's a few inexpensive chemicals added water, that's all...distribution is the main cost, but with a focused approach collaborating with local niche beverage distributors....it should be possible to achieve sales numbers of 150 million cans per year....I mean, Musclepharm got a different product, right!
The product is different, it got an entirely different ingredient list than any other energy drink, that are all caffeinated.
Musclepharm is just gonna carry it where ever Muscle Milk and Gatorade are carried as a Complementary sports nutrition products for the mass market.
Red Bull might be available at GNC, but I would not consider that a true sports nutrition product....
it's not all sell through....Musclepharm got many loyal customers and sales normalized throughout Q1.
q1 was probably some risky affair, as Musclepharm was selling products it didn't have the money to pay for....but it never raised any capital though and it did pay $850,000 cash for Musclepharm Apparel with the $4 million borrowed....so, Musclepharm must have stabilized itself, and it must show better results than Q4....because otherwise it would have raised capital following the earnings announcement.
Musclepharm is huge in Brazil, so I don't know what you are talking about.
The Musclepharm Energy Sport drink is a completely different drink than the traditional energy drinks as it contains NO CAFFEINE whatsoever. It is a sports beverage and the energy kicker is ginseng.
This drink is most likely not intended for international markets....and will never compete side on side with multi billion dollar brands like Gatorade and Red Bull.
That doesn't mean it could add $50 million to the bottom line.
Too much competition and too few channels.....Brazilian Acai berry and Peruvian Chocolate drinks sound delicious though, and that could be sold everywhere...to both men and women.
Musclepharm should add some plantbased products to the Fitmiss line...let's face it, it's girls that are into plantbased products in America....it's the Lululemon segment....it's only girls that drink tea to lose weight and eat soybean based protein to gain strength as far as I know.
It is about maintaining the brand identity.
Musclepharm altered the image to be a little less badass by adding Tiger Woods.....but it is now pulling back by adding the MP Hardcore and MP Black Label lines.
So, there is some good balance now, between broad and niche....so, why does it want to enter with a new Nature Sport brand?
Musclepharm got what it needs and what it can possibly handle.
Perhaps it should add a plantbased protein drink with Brazilian Acai berry or a whey based protein drink with Peruvian Chocolate (that is kind of trendy now)....but what's the purpose of a plant based protein powder line? Vega Sport that is the largest brand in category, got so many competitors fighting for space at Whole Foods Market....same thing with Vegan protein bars.....I would stay away from that, because there are too many brands fighting for too little money.
Overall, Musclepharm got a great product line-up now....so, I think it should work harder on the product and category management....improve the Assault formula for the Hybrid line, and expand internationally as Jimmy mentioned.
I agree with that strategy....focusing on the mentioned geographic locations makes sense, perhaps I would add Orlando to it for obvious reasons....Tiger Woods lived there, wrestling and UFC got it's following there, and lots of Brazilians live there.
When it comes to products, Musclepharm doesn't really need any more....Musclepharm might end up being a show room for the contract manufacturers' capabilities and it is not it's job.
When it comes to apparel, try to focus on a few products that athletes would use....like synthetic compression pants, shirts and leggings for the girls....Don't sell too many cotton shirts with dumb slogans and oversized logos....that phase should be over for Musclepharm.
Livonia, MI sounds like some place where some credit card thief would use your credit card.
Fact: Musclepharm's products are sold through most supplement retailers in America.
Loyal repeat customers typically buy their MP products through Muscle and Strength, Costco, GNC, Vitaminshoppe and Bodybuilding.com.
Musclepharm got 4 different types of protein powders:
MP Combat, Arnold Iron Whey, Arnold Iron Mass and MP Hardcore/MP Combat Black.
I mean, what is there not to like about the company and it's management?
Considering the great retail and manufacturing partners that Musclepharm got and the involvement of Phillip Frost....what's missing? earnings are missing and revenues fluctuate too much? Hell you cannot grow like that without investing into marketing and operations....and the sales will never be the same from one quarter to another for any such company. The company is in an adjustment phase to becoming a medium sized company from having been nothing more than an idea, five chairs and a laptop computer.
A few years back, the company had only one line and one retailer...now, it is all over the map, and it's manufacturers cannot afford to lose it's business. That gives a whole lot more power than what is used to have.
In the sports nutrition business, sales are the best until the month of November.....that's the same for all companies....so, Musclepharm might very well have some much better numbers than what you guys anticipate, and it did that through better sales and better manufacturing costs.
Musclepharm Black Label's packaging is really nice, and the content is what the "hardcore" crowd wants.
http://www.stack3d.com/2015/04/musclepharm-black-label.html
SEC invest. closure may very well be very profitable to us.
The press release tells us that the SEC is considering to propose to sue executives individually....which is normal procedure when settling a case....the threat of a lawsuit overhanging. Everybody is gonna settle and Musclepharm's treasury will be filled with cancelled stock grants.
Essentially, Musclepharm can raise capital equivalent to these cancelled shares and there would be no dilution whatsoever....or raise more and only dilute partially.
It may not come that cheap for executives as this investigation has taken close to 2 years to conclude and millions of dollars in lawyers bills to defend....so, quite that many shares could be returned based on that fact alone.
pretty much, the latest press release gives us the impression that if former and current Musclepharm executives don't give up some unvested stocks granted, they may be sued by the SEC individually.
What exactly was not good news about that?
Sydney Rollock is gonna keep his shares, but many of the other executives that were hired before him...gotta accept that theyll have to give something back.
[Musclepharm] completed offering of Series D convertible preferred stock at $8.00 [that] is convertible into two shares of MusclePharm common shares.
Brad probably looked at VPX Sports and played his cards wisely, expanding into beverages with Nutrablend Foods while lowering the cost of manufacturing of protein powders through Capstone Nutrition
http://www.vpxsports.com/
Musclepharm is in a better financial shape than ever....because Musclepharm has entered multiple product categories at competitive cost of manufacturing.
If Musclepharm acquires Capstone Nutrition, the cost of manufacturing will even drop further for protein powders and supplements....and Musclepharm will receive streams of revenues from contract manufacturing of protein powders and supplements.
Musclepharm might even receive streams of revenue from apparel as well...offering to design and brand merchandise for other sports nutrition companies.
VPX has it's products manufactured by Nutrablend Foods....and it got the Redline energy drink right.....so, I wonder if the replacement of Capstone Nutrition for the protein powder means that the Cocoprotein and the energy drinks are made in NY or Ontario, Canada by Nutrablend Foods?
If so, the terms might be quite good....I know that VPXsports Redline energy drink was quite popular here in Miami, so, I assume these manufacturing contract wasn't too bad for VPX.
Might be that Musclepharm is dealing with the right contract manufacturers for the right products.
I'm very encouraged by the involvement of Phillip Frost as he is involved in the sports nutrition ingredient and quality testing company Chromadex....with his connections and the right manufacturers....Musclepharm could truly become the next Nature's Bounty or Schiff Nutrition one day.
the stock is heavily undervalued.....even if Musclepharm had to dilute the stock raising capital at the same terms as the last pipe deal....that should make the stock be worth at least $11.
Thus far, Musclepharm has not needed to do so...so, it must have maintained sales at a satisfactory level.
Remember that Musclepharm's bank got stocks in escrow and remember that the SEC most likely means that stocks granted to executives will be returned to shareholders....so, at least 1 million shares outstanding should be expected to be returned to company if Musclepharm rose capital and closed SEC investigation.
So, the company is not worth $4....but more like $11 considering the revenues that Musclepharm got.
Ryan Deluca is good to Musclepharm, but right now he is promoting this Jim Stoppani's products aggressively and it is just moving things in the wrong direction, making the industry more vulnerable for a crack down.
https://www.facebook.com/ryan.deluca
high protein content is not considered damaging to consumers thus far by any federal or state agency....but when you keep on pushing it that may change....We know that New York is looking at this whole supplement industry right now, so the timing is bad.
Ryan Deluca claims it is only 8% of his customers that are hardcore bodybuilders.....that makes me wonder why he thinks it is right to promote Jym Nutrition products so aggressively then?
If you search for any competing product on bb.com and bodybuilding.com refers to a Jym Nutrition product....no wonder this unknown brand sells so well.
Concentrated products are fine, but they are no better than less concentrated products, other than you need to scoop less if you are normal...This is not always made crystal clear though.
Musclepharm should grab the market for more concentrated products, but these concentrated products should never become stand alone products like Jym Nutrition's.....where more is always better.
More is not always better.....too much of anything is lethal....be it sugar, protein, fat....and the Hybrid line is kind of all that average joes need.
what's wrong with their marketing?
I was not too happy with their hardcore name initially....but I'm kind of liking it more now.
It's very important for legal reasons to make it crystal clear that the Hardcore line is a concentrated product and not intended for everybody.
My feeling is that Jim Stoppani is gonna get sued for acting like an MD and promoting very concentrated protein products for average joes.
Let's face it....these concentrated products have never been healthy for you and may damage your kidney severely.....So, trying to insinuate that weaker and thus healthier products are bad....that might cause that somebody in dialysis is gonna sue Jim Stoppani for all he got.
He doesn't even try to warn you about the contents of his products in any ways.....he just gives everybody the idea that if you consume his products you are gonna become superman.
Jimmy, I'm superman in dialysis....what now?
The problem with protein powders is not that they are too weak...it's that they are too concentrated and harmful to your health. Consuming too much protein is potentially lethal for anybody....it's established by medical community in numerous medical journals and Jim Stoppani doesn't refer to these articles.
Ryan Deluca has a responsibility for not promoting these kind of clowns like Jim Stoppani that moves the industry in the wrong direction.