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Jimmy is absolutely correct.
The main reason that Monster Beverage partnered up with Coca-Cola was to leverage Coke's international distribution capabilities.
Coke knows that Monster could be huge in the foreign markets, and purchased a 16.7% equity stake in MNST for just that reason.
The energy drink companies have not penetrated the international markets to any large degree. Brazil is a huge market.
We wrote about the opportunity in Brazil on our blog back on September 8, 2014. It literally blew us away when we discovered how much the health & fitness industry has grown in Latin America over the past 10 years.
The smart executives in the industry know this.
Memo to Brad Pyatt:
Focus is one of the most important attributes the management team must adhere to. It is very easy to get distracted by "opportunities". Chasing opportunities greatly reduces your chance for success.
http://www.retailingtoday.com/article/saving-celsius-cpg-company-comes-back-brink
$CELH stepping things up to create greater awareness.
http://altitradepartners.blogspot.com/
The MSLP Board of Directors, along with Mr. Frost, need to seriously look at making some major changes in the C-suite. They do, after all, have a fiduciary responsibility to shareholders.
We have firsthand experience with this type of situation. One of the companies that we are invested in found themselves in a similar situation about 3 1/2 years ago.
It wasn't until the majority shareholder decided to bring in a new management team, with years of successful turnaround experience, that things began to improve. Today the company is profitable in an industry where 97% of companies fall short of important revenue benchmark metrics, and will subsequently fail to stay in business.
A 3% success rate is not exactly confidence inspiring when you are a potential investor.
The issue for shareholders in any corporate reorganization is being patient enough through the turnaround process, and, most importantly, having the right management team in place to execute on the strategic business plan.
If we saw the BOD taking steps to bring about a change in leadership, we might be more inclined to view MSLP in a positive light. But right now, they seem to be part of the problem.
So you are saying that MSLP stock is worth almost 2 1/2 times what it is selling for in the open market?
That is quite a bold statement.
Over the years, we've found that there is only one truth in the stock market, and that is PRICE.
It would seem that 99.9% of investors disagree with your analysis, including us.
We'll keep our eyes on the Amazon reviews to determine how well the products are being accepted by consumers.
http://www.amazon.com/MusclePharm-Energy-Sport-Zero-Cherry/dp/B00UXGIT3Q/ref=sr_1_1?ie=UTF8&qid=1429192216&sr=8-1&keywords=musclepharm+energy+drinks
"These loyal customers that currently drink another brand's energy drink will now switch to MP's drinks. The other companies know this and are sweating".
I'm sorry, but we're not understanding your position on this. To start with, the one thing that MusclePharm does have is brand name recognition.
First, why would you advocate that they private-label products for Costco and Whole Foods Market where they would lose the the ability to promote their own high-profile branding?
Do you really believe that gym & fitness enthusiasts would choose a Kirkland product over a MusclePharm product? We think not.
Second, since the private-label store brand products typically sell for less than the national name-brand products (that's their big marketing pitch; similar quality at a lower price) margins would be pressured even further, thereby making any chance at profitability seem even more difficult to achieve.
Third, since MusclePharm uses contract manufacturing, they have very little control over the actual manufacturing process, or the ability to engage in the type of price negotiations that the big-box warehouse retailing giants have a notorious reputation for engaging in with suppliers.
Overall, it doesn't sound like a very sound business strategy to us.
"Really, if I were Musclepharm I would start making many other products for Costco and Whole Foods Market as well..."
Again, we must respectfully disagree with your assertion. Costco is primarily a distribution entity, not a manufacturer of products.
Kirkland Signature products need not necessarily be made specifically by Costco, and many items are simply popular name-brand products that carry the Kirkland Signature label. The company places particularly high emphasis on quality, and every product carrying the label must meet the company's strict quality standards before wide release.
http://www.ask.com/business-finance/kirkland-signature-products-6804d388634f957
Kirkland products are nothing but Costco private-label branding.
Question: Who do you think manufactures these items for Costco?
Hint: It's the same big name companies whose brands are also found alongside Costco's proprietary versions.
We're going to have to respectfully disagree with your statement "People that shop at Costco don't go after the established brands, they go after niche brands and private label brands....everybody knows that."
Actually, the main reason why people shop at Costco is price. Over 90% of what they carry are established name-brand products. They are not likely to put lesser-known, secondary brands on store shelves. The risk of losing consumer traffic is too great a risk for them. They know where their bread is buttered and will stick to the big names in the consumer packaging space.
One other advantage of dealing with big-name brands is that there is a reduced chance of having to worry about fulfillment issues.
The advantage that Costco offers to consumers is the cost of those big-name products are much cheaper on a per ounce/per unit basis.
We also have to disagree with you on the entry of MSLP into the energy drink market. As some others have pointed out, they are late to the party and there is nothing to differentiate themselves for the competition.
We are very familiar with the entire energy drink marketplace and the beverage industry in particular. We have authored a number of articles on Seeking Alpha, two of which have received "Editor's Pick" status.
We also have a blog devoted to the beverage industry and one company in particular that we have chosen as our number one investment idea for 2015.
We're not here to promote our research, but after seeing this company rise 47% in 2014, it is up another 200+% so far in 2015.
It's actually quite a turnaround story. The first thing that a new management team did in 2011 was discontinue their relationship with Costco. Why? The margins were razor thin, and they discovered that they couldn't make any money in the big-box retailers.
MSLP will most likely face a similar situation, if they go that route.
Furthermore, most people who bought at Costco were already users of the company's products, and it was discovered that the main reason why consumers purchased them was the lower price.
When we sat down with company management, we told them that we thought that they were crazy terminating the relationship with Costco, especially given that fact that over 40% of their total revenues came from this one distribution channel.
There was an article is Retailing Today magazine titled "Back From The Brink" that discusses the decision to exit Costco, and the reasons why that decision was made. It's an interesting read.
We are not going to disclose the name of the company on the MSLP message board because we don't want to be challenged for posting off-topic, and as we said we are not here to promote any agendas.
The bottom line is that we are not impressed with MSLP management's strategic business plan. They seem to be losing focus, and are scattering their energies across too many areas, instead of sticking with what got them to where they are. We also are worried about their tenuous financial condition.
The bottom line is we believe that MSLP's decision to attempt to compete in the energy drink market will result in a further deterioration in the company fundamentals, and put further pressure on their financial condition.
We would welcome any intelligent discourse from others, and are open to hearing cogent, fact-based opinions on this and other topics regarding the business prospects for MSLP.
Disclosure: We currently hold no position in MSLP shares, long or short.
Sorry, but no. We currently hold no position in MSLP; either long or short.
At this point it is on our watch list. Nothing more.
Our latest blog on $CELH
http://altitradepartners.blogspot.com/
They still remain an unknown until a settlement with the SEC is finalized.
<<The uncertainty of unknown liabilities is put behind, so that alleviates the concerns that many creditors and investors had.... >>
Just to clarify, we were referring to the financial liquidity of the company, not the shares themselves.
Unfortunately, today's announcement of a proposed settlement with the SEC does nothing to alleviate the liquidity issues MSLP is facing.
Their financials remain a disaster.
Additionally, we expect Q1 numbers to disappoint, adding additional downward pressure on the share price.
As a result, we don't see any value here at these levels.
Celsius made it official this morning !!!
http://www.finance.yahoo.com/news/celsius-r-launched-golds-gym-130000190.html
Distribution in the health/fitness channel is increasing
https://www.facebook.com/pages/AXS-Brands/493183684032916
The new and improved Celsius website is awesome!!!
http://www.celsius.com
Stock Dog, thanks for your reminder.
At this point we have other priorities ahead of MSLP. We've decided to concentrate on those companies that are continuing to show progress on a number of fronts, and where the stock price is reflecting those improving fundamentals.
While one may disagree with Mr. Finston's conclusions, the facts which he presents stand on their own merit.
Longs will try to put a positive spin on MSLP, but the reality of the situation is that this is a very troubled company. The aforementioned Seeking Alpha article lays it out very succinctly.
http://www.seekingalpha.com/article/3052276-musclepharm-its-all-about-the-cash
Our indicators are still flashing green.
We purchased an additional 50,000 shares between $0.94 and $1.25
http://tinyurl.com/oluxs3c
$CELH featured in our latest Seeking Alpha article
http://tinyurl.com/ou5yq3t
These have certainly changed since we last looked at them a month ago:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=111098417
Here's one we somehow missed:
http://quote.barchart.com/snapopinion/stocks/CELH
***** Strong going into the close *****
http://stockcharts.com/h-sc/ui?s=CELH&p=D&b=5&g=0&id=p01084497248
***** Strong going into the close *****
http://stockcharts.com/h-sc/ui?s=CELH&p=D&b=5&g=0&id=p01084497248
***** ALERT TO MACD CROSSOVER *****
https://twitter.com/AltitradePartne/status/581130740173160448/photo/1
***** ALERT TO MACD CROSSOVER *****
https://twitter.com/AltitradePartne/status/581130740173160448/photo/1
***** ALERT TO MACD CROSSOVER *****
https://twitter.com/AltitradePartne/status/581130740173160448/photo/1
Strong acceptance by consumers is usually the first indicator of a brand's revenue potential http://stks.co/b1wtm
$CELH Strong acceptance by consumers is usually the first indicator of a brand's revenue potential http://stks.co/b1wtm
$CELH Strong acceptance by consumers is usually the first indicator of a brand's revenue potential http://stks.co/b1wtm
$CELH Amazon rating moves up to 4.4 stars out of 5.0
With so many new 5.0 star ratings recently, the overall number has moved up from 4.3 to 4.4 stars.
See what Celsius users have been saying:
http://www.amazon.com/Celsius-Raspberry-Acai-Green-12-Ounce/product-reviews/B007R8XGKY/ref=cm_cr_pr_viewopt_srt?ie=UTF8&showViewpoints=1&sortBy=recent&reviewerType=all_reviews&formatType=all_formats&filterByStar=all_stars&pageNumber=1
The brand is just starting to get noticed by consumers and investors:
https://stockcharts.com/c-sc/sc?s=CELH&p=D&b=5&g=0&i=p47798926739&r=1427299671795
$CELH Amazon rating moves up to 4.4 stars out of 5.0
With so many new 5.0 star ratings recently, the overall number has moved up from 4.3 to 4.4 stars.
See what Celsius users have been saying:
http://www.amazon.com/Celsius-Raspberry-Acai-Green-12-Ounce/product-reviews/B007R8XGKY/ref=cm_cr_pr_viewopt_srt?ie=UTF8&showViewpoints=1&sortBy=recent&reviewerType=all_reviews&formatType=all_formats&filterByStar=all_stars&pageNumber=1
The brand is just starting to get noticed by consumers and investors:
https://stockcharts.com/c-sc/sc?s=CELH&p=D&b=5&g=0&i=p47798926739&r=1427299671795
$CELH Amazon rating moves up to 4.4 stars out of 5.0
With so many new 5.0 star ratings recently, the overall number has moved up from 4.3 to 4.4 stars.
See what Celsius users have been saying:
http://www.amazon.com/Celsius-Raspberry-Acai-Green-12-Ounce/product-reviews/B007R8XGKY/ref=cm_cr_pr_viewopt_srt?ie=UTF8&showViewpoints=1&sortBy=recent&reviewerType=all_reviews&formatType=all_formats&filterByStar=all_stars&pageNumber=1
$CELH photos of "Accelerate Your Transformation" marketing collateral
http://altitradepartners.blogspot.com/
$CELH article is a Seeking Alpha "Editor's Pick"
http://altitradepartners.blogspot.com/