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$40 million revenue from GolfLogix alone? I don't think you've done your DD.
CARN is coming into the deal where GolfLogix already has 2 million members. CARN has to be around while GolfLogix gathers 2 million more paying members. However, even 2 million paying members = $40 million in rev for GolfLogix, not CARN. Assuming they're all paying for it, CARN takes $1 + a % but I'm guessing GolfLogix got a deal. It's probably closer to $2 million in revenue for every 2 million customers who subscribe with GolfLogix. Then you need to take into account that credit card processors take a % from CARN, too.
Despite all that, I do think CARN has great potential because they provide multiple mobile platforms to generate more revenue for other companies where there was no revenue before (or lower margins), and CARN should be a high margin business.
I got a response from Greg in like 20 minutes about the use of funds being raised. He said they'd be going towards sales/marketing and not product development.
What did you email to him? Perhaps you're not asking the right questions.
Over the past 3 days, the short volume has been over 30% according to the short report. If the float is locked up and there's quite a few shares short still...it's definitely going to get crazy. If news does come out, and there's even 1 million shares short = boom city.
Confirms about 10.7 million shares of dilution from the previous numbers. That should be enough money for them to run a nice campaign to gain more revenue over the next few months.
I also know of a group that owns a little over 10% of that new float who aren't associated with any promoters. As soon as they told me about this one, I hopped on. It'd be interesting to learn how many shares are locked up by this board. I would imagine, 30-40% of the float is in tight hands on this board. This is purely a low float play for me based on the current information. That might change if a PR comes out with some game changing news that everyone is excited about for no reason other than rumors.
Ya, I did see that, which is why I mentioned it in my post.
No where did I say that this is over valued and dilution would crush it. What I'm saying is that for this company to grow, there will be dilution long term. Look at their revenue as of 1/31/13, a whopping $3446. They're not going to sustain themselves on that. Dilution is a reality for this company. To what degree is going to be the important question.
This is purely a low float play for most promoters and for me. There's plenty of money to be made here, no doubt about that.
Punter Stock Picks
Our Hot Stock Picks
Xtreme Picks
First Penny Picks
TopStockTips
OTCBB Journal
6 total including Topstocktips according to stockpromoters.com
Do a search for $carn on twitter, too. Lots of posts on there. Not sure how many are from the list above, I haven't taken the time to really look through them.
It's hard to say, there's 6 companies promoting this stock, but none of them have been compensated except for TopStockPicks for their 4/22 pump ($1500).
I'd lean towards there being dilution since the CEO is saying they're focusing on sales and marketing. Marketing for any stock like this = lots of costs. However, marketing for this company and their product might be more sales people instead of traditional marketing. Based on their current assets though, money is needed to operate = dilution.
Why is it supposed to take off soon though? I would assume potential revenue from any deals already announced have been factored into the market price.
Why do you say that? Because of the big bid and low float?
I found CARN on twitter so I'm curious about this one.
Sorry, but I really doubt they're doing this to dilute more. With a large investor like Frost on board, if they needed more money, I think Frost would gladly buy those shares instead of letting them hit the open market.
I'm not sure what the end purpose of paying Redchip 22,000 shares is but there are other reasons than dilution. They could be simply trying to raise their profile to larger buyers so if they buy in it eats up lots of shares and raises market capitalization. I do think that 22,000 shares is a bit extreme to be a client of Redchip, however they did state they must hold them for awhile before selling so Redchip must think it's going to go well. Also not mentioned in the video, but mentioned on the website, Redchip was issued some options that are priced between $8 and $12.
Just reading the Redchip website, they do seem like a pump company, but a little more upscale, some of their clients are already on the Nasdaq, too. Some of them are doing well, some of them not so hot.
I'm leaning towards agreeing with you, LC, but I also think if they're close to profitability after Q1 and made important changes, Frost will purchase more shares to help out.
The most important part of the letter that I see? This is what's going to help bring them to profitability.
What's not a fully reporting company is MP Sportswear. They're a separate company from MP. The wording in the filings is that muscle pharm is to receive 10% of NET profits. Easiest way to not show net profits? Increase your salary. Of course this is speculation and it's not that outrageous considering what we've been through pre-split.
You and Rainmaker haven't been here that long so your opinions aren't influenced by past events, and they'll almost always differ from those who have been here more than a few months. We're all here to make money and we're all here because we still see potential with this company. Whether or not the company is maximizing potential is really what we're discussing.
Also, speculations are all we have to go on because we receive so little information from the company. The facts have all been discussed and without speculations, this board would be boring and where's the fun in that?
Hahah no kidding. I'm still mad about the way they handled it but we did ok in the end. I might write an angry thank you letter lol
They're actually very close to qualifying. They need to increase their shareholder's equity to $5 million and market value to $15 million and they're good to go as far as I can tell about the requirements.
I found some time to call today, they said 10 business days at the most. I spoke with Sarah in the corporate actions department. She did say that some shares may have been settled but others have not been settled.
Nope, I haven't had time to call them, unfortunately. If you do call them again, ask to speak to the corporate actions team and push for details from the DTC, specifically when they last contacted the DTC about MSLP. The DTC is essentially a vendor of ETrades so they should be demanding more of them, even if it's just an update on how long it will take. And don't settle for the typical "it's in the DTC's hands, we don't know how long". Go for a supervisor whether its in the customer service department (they helped find out the certs got destroyed so they might actually be more helpful as they can escalate the issue to the supervisors in corporate actions) or in the corporate actions department.
I'd also ask about selling your shares. A few reps told me you can by opening a short position, which locks in the current share price but you won't receive funds until the shares come in to close the short position, and a few reps told me you can't do that cause ETrade doesn't do shadow trading (one rep also told me they did do shadow trading lol)
Based on Frost's interview with Cramer last night, I feel like he's taking more of a pharmaceutical angle on this rather than financial. Remember awhile back they were trying to get a product approved by the FDA for reduction of muscle loss? Frost might be able to help make that happen. You can tell by the way he talks, he's a true businessman. Ie, "we have a 12 billion dollar market untapped market in the US and another $12 billion in Japan" (in regards to vitamin D, I think).
Either reason, financial or pharmaceutical, Dr. Frost's involvement is huge now that he's a shareholder.
I'm most disappointed that Brad didn't write a letter to shareholders with the information in that article, the plans for the future would have helped increase the stock price even without Frost's involvement. But hey, that disappointment can be fixed :)
I believe the 2nd gym was in reference to one they planned on building in Idaho, which was based off a facebook post by Delouca. I don't know if anyone ever confirmed that the gym was built, 4th Q filing should tell us as they list gym equipment as assets. Look for a large increase in those values.
Shareholder equity only needs to be $5 million. Market value of publicly held shares needs to be $15 million.
Under the equity standard on page 9 https://listingcenter.nasdaqomx.com/assets/initialguide.pdf Muscle Pharm needs to meet the following requirements:
1) Stockholders equity of $5 million
2) Market value of publicly held shares of $15 million (not yet met)
3) Operating history of 2 years
4) Publicly held shares of 1 million
5) Shareholders of 300
6) Market makers = 3
7) Bid price of $4 or Closing price of $3*
*Since the bid has dropped below $4 during the application process (still in the process since #2 has not been met), the closing price of $3+ is now applicable. For #7 to be satisfied the closing price must stay above $3 for 5 consecutive business days AND muscle pharm must meet 1 of 3 conditions, 1 being an average revenues of $6 million over 3 years.
The only thing I can draw from this is that once the offering is complete, muscle pharm will be able to uplist because they'd then be meeting #2 and thus all conditions are met.
There is no mention of 45 days in the listing requirements.
There's also corporate governance requirements, but I believe all those have been met.
Just spoke to the transfer agent, they got a whole bunch of info on the ETrade shares yesterday and they were sent out yesterday. I spoke to ETrade also, they said it's up to the DTC to send them the new issues electronically. They're unsure if it will be done today, next week or next month as it's in the DTCs hands.
Hopefully we see our shares soon.
For those with ETrade http://www.dtcc.com/superstorm_sandy.php
Some of the posts say it could take months to sort through the physical certificates. The latest one mentions that recovery firms have been brought in and instructions are being sent out, so that's good. Hopefully this occurs soon!
Great, how's this for transparency? From the 424B4, top of page 14.
I called Etrade again this morning, they said there were no new updates on it, and basically said if I wanted to get more info I should call the DTC. Didn't have time to wait on hold so I sent them an email, hopefully I get a response back soon.
I also did a little research on the DTC website, their vaults were flooded but that PR went out on 10/31 and 11/2. Not sure why it took ETrade and the DTC so long to figure out that MSLPs certs were in the vault.
As far as I can find, 45 days is just a number being thrown around by people on this board. I'm using this PDf as a guide https://listingcenter.nasdaqomx.com/assets/initialguide.pdf
Based on the requirements, muscle pharm is probably going for the Equity Standard, which has a 5 consecutive trading day requirement applicable to a closing price of $3.
The $4 bid price is out of the question since the bid dropped below $4, however, Muscle Pharm can still uplist using the closing price of $3 condition since Muscle Pharm meets the condition of having over $6 million average revenues for the past 3 years, which allows muscle pharm to qualify for the $3 closing price alternative.
However, the one thing holding us up is the market value of securities of $15 million.
The application itself takes 4-6 weeks according to the PDF so I can only deduce that the market value is the hold up.
This is all new to me, but this is what my research is telling me.
While the salaries themselves have only been a small part of the overall loss, the amount of the salaries is a problem to almost all investors, even positive ones. Yes, revenue growth has been extraordinary but losses continue to mount up. On top of that, we get virtually no communication from muscle pharm with PRs or through investor relations. Many of us here fail to see how muscle pharm execs have positioned themselves for institutional investors when the same principles that led us to the toxic financing are still in place, at least as far as we know.
As a new investor, maybe you can lend some objective insight into the following questions:
1) What are they doing to improve their bottom line? The filings are very generic and could be anything from cutting the purchase of pens to putting pressure on their manufacturer.
2) In a PR last year, they told us their goal was to be CFP by Q1 2012, what happened to that goal? (I know you're focused on the future, but this question about the past, relates to plans going forward).
3) If the reason for not meeting that goal was to push for rapid expansion internationally, what is the end goal of the rapid expansion? Ie, at what point will the company focus on bottom line instead of revenues.
I really doubt institutional investors will look at this and say now there's a good gamble without questions like these being addressed. Institutional investors will not only look at the revenues because nothing has changed from when the revenues were growing exponentially till present so in their eyes, this will mean more dilution to fund the growth, which muscle pharm cannot do without taking a loss it seems.
Ooooh, come on pumpers!!!!
It's probably the purpose of the bridge loan. Isn't the payback date just after the 45 day mark to uplist?
Muscle Pharm already took care of that problem but saying you can't buy more than 9.9% of the company after conversion. That way no one can complain about buying 50% of the company and not having their voice heard. Smart move by muscle pharm to take out 95% of the investors they want...ya, right.
Completely agree. Doc was making the series D shares to be the end of the world because it's an additional one. It's the same old dilution.
What I hope to find out is:
1) At what point will dilution end? Does muscle pharm have a clear goal in mind?
2) What's the point of the rapid expansion? Are they looking to get to $100 million, $200 million in sales? For what reason if they're not making money? Is it to sell the company?
3) What changed between last year's profitable by Q1 2012 PR and the following quarters? We kinda know the answer to this one, but big changes occurred like expansion into Canada. The real answer might connect back to #2.
4) What's being done to reduce expenses? Their filings give general answers that could mean reducing big items or reducing the amount of pens they buy.
If we can get these questions and a few other answered, I bet the PPS would double. Simple enough? If only.
Here's the link if you can't search by post# http://investorshub.advfn.com/boards/read_msg.aspx?message_id=83177911
If you do call ETrade, ask to speak to the corporate actions team. They should all be updated on the situation but they'll probably give you the typical, we don't know how long it will take, it's up to the DTC.
I'm not sure why the series D preferred shares are so negative. There's no dividends, no voting rights with the series B preferred shares, and no one is getting anything in a bankruptcy so the series D are just the same as a common share x2.
If you ask me, series D is better than just selling common shares because it requires the holder to actually convert the share, a barrier to exit. Not a big one, but still a barrier.
The only preferred shares to worry about are the series B.
Here's the update I received:
Etrade holds MSLP with the DTC in physical format in their vault. The vault was flooded by hurricane Sandy so the actual certificates were damaged. ETrade just found out yesterday that this happened (even though we've all been calling them and telling them they're the last brokerage house to receive their shares) because they just called the DTC yesterday for what sounds like the first time. The DTC has to cancel the old certificates, get new ones from the transfer agent and then exchange those for the new shares, then the transfer agent sends those back to the DTC then on to ETrade.
I just spoke to the transfer agent also, Judy said it's same day turnaround time for exchanging the shares.
It's unique circumstances due to the hurricane but I am still angry that ETrade didn't look into this earlier. I was also told that all the other brokerages that did receive their shares are probably held electronically so the flooding wasn't an issue.
Please, muscle pharm basically paid $225000 to get the $1 million bridge loan for 45 days! Even if muscle pharm paid it back on time, the investors got a 22.5% return in 45 days, you don't have to be sophisticated to take that deal. It just so happens that the investors are sophisticated, but please don't make the mistake that because they're sophisticated it's a good sign.
Do you see where it's been rolled out by chance? I checked bodybuilding.com where muscle pharm said it would be on pre-sale today but I can't find it on there. I would think bodybuilding and musclepharm would promote the heck out of it.
I just spoke to ETrade again and fought to speak to a supervisor. I tried to get a conference call going between etrade and the transfer agent but it's not within policy. So when I finally got to the supervisor she said she would raise this up someone a little higher on the corporate actions team than normal. I explained that Etrade is the last firm to receive their shares so there's probably a break down in the line of communication between Etrade, the DTC and the transfer agent, which she agreed was odd since all the firms typically do the same thing and get the shares at the same time. I'm expecting a call back within a few hours, will update once I receive a call back.
You should probably calm down a little, Fitmiss goes on pre-sale tomorrow, that's it. A full 6 days late for pre-sale, not even the launch! Not huge in the grand scheme of things but indicative of muscle pharm's continual incompetence, whether the problem is financial or logistics.
Regardless of the situation jltg used, Muscle Pharm for sure paid at least $225000 to get the 1 month bridge loan by issuing 50,000 shares. Seems silly to pay nearly 1/4 of the loan amount with shares AND have to pay the original principal back within 45 days. Dr. Frost doesn't have to be a genius to take that deal.
People are looking into his involvement a little too much if you ask me.
I do agree that Fitmiss will be a good market, however, I also think it's going to require a lot of marketing capital and time to build the brand unless a big big name like Jillian Michaels or Oprah endorses it. They need an every day name for this to take off as quickly as you want it to.
Believe it or not, I called that number the other day, 2 rings and voicemail but I got a call back from Mindy at musclepharm. We've been playing phone tag but she said she spoke with the transfer agent and has been told the same thing that we have, it's on ETrade's end, not the transfer agent or muscle pharm.
My understanding is that the DTC has ETrade's information but the transfer agent doesn't so I'm trying to get the transfer agent to contact the DTC to find out what's going on but they said "we're not really supposed to do that". I left a message for Mindy with this information so hopefully she can get the transfer agent to contact the DTC. Mindy also said, if you contact ETrade, be very forceful and ask to speak to a compliance officer, who might be able to help you. I haven't done this yet but I will be doing this on Monday. Both the transfer agent and Mindy confirmed that ETrade is the last brokerage to go through.
Edit: I see you got a call back too. Glad it's not an isolated incident to get a call back haha.
He's talking pre-split. It's easier for some of us to think in terms of pre-split volumes for perspective. I know it is for me after watching mslp for a year and a half pre-split.
I just called the corporate office, 2 rings then voicemail. I'll give them the benefit of the doubt that they're catching up on things from having yesterday off, but we'll see how long it takes them to call back. I'll probably call every morning from now on.
Who did you confirm this with? The transfer agent?