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With Celcius valuation MSLP should be trading at $0 or a negative number. MLSP has proven to never be profitable at any revenue level.
Even basebalplayr33 agreed with codie when he made that point several months ago. MSLP was unprofitable at the $5m in annual revenue and more unprofitable at the $50m in quarterly revenue.
MSLP just posted a $16m loss on $32m in revenue. MSLP loses $.50 cents on every $1 in sales in the most recent quarter.
MSLP will go to $0 while Celcius should continue to climb.
Goldman Sachs or the Bankrupt Fumbling Kick Returner?
TEH has made his choice. LOL
They already had that facility. It makes some shampoo and cosmetics. Has about $10m in revenues and $2m in real cash losses in 2014. Nothing to do with any product from MSLP.
When the company is releasing ancient copies of old press releases and trying to infer there is something new, it shows you how desperate the damage control is going.
Watch out for earnings (LOL) in less than a week or two.
New lows coming.
Celcius has a 20% larger market cap than MSLP even though the former has 1/10th of the revenue of the latter.
The difference?
Celcius is cash flow and EPS profitable on just $5m in quarterly revenue while MSLP profits are as elusive as a unicorn.
See the difference when your company is run by Goldman Sachs investment banker vs a bankruptcy filing kick returner with a fumbling problem?
Who wants to bet on the a kick returner who can't hold on to the ball with a history of filing bankruptcy?
Evidently everyone here except for Cody, adam and me. That's why Goldman's is such an exclusive club. You must possess exceptional intelligence and skills that very few have. Congratulations Cody and Adam. You are Goldman material.
Thanks for the compliment. bellator exec was the most intelligent contributor I have ever read. I was a lurker as I had nothing to add that he couldn't say better. He taught me so much about this company. He posted when he exited. He wrote to learning curve that he covered 25% of his short position immeidately after the Q3 results were reported and that he would cover the rest after Q4 results. I assume he made his gains and has moved on to other opportunities as this stock is in death throes.
PJ, My statement is 100% factual. Here is a transcript excerpt from the Q3 conference call referencing a decline in revenue in MSLP's largest sales channel; specialty. Go back an read my post in detail and revenues in all channels are declining in the core business of MSLP product. Remember this comment was made referencing Q3 that reported $47m in revenue but $7m of that revenue was smoke and mirrors bargain purchase gain based on intangible assets that was somehow reported as operating income and not a balance sheet item. NOT GAAP. So MSLP really did $40m in rev and if you strip out the BZNE $2m then you get $38m from core ops. MSLP has 4 quarters in row of decline real revenue from core operations of MSLP products. Q4 drop was dramatic but there has been a trend for a while now and YOY quarterly comp numbers are now showing a decline.
Celcius is profitable though sales are only $5m a quarter. Expenses are very tame. Company has urban uber entrapeneur Russ Simmons and his former wife Kimora who is now married to a Goldman Sachs banker who is influential in its fundamentals.
In other words, nothing like the MSLP looting mentality.
Jimmy,
Wynnefield bought in at around $9 a year ago.
If they were so smart they would have waited or not bought in at all. Wynnefield has turned $9m dollars into $4.4m in one year.
Is a negative 50% return on capital a good investment? A hedge fund wouldn't stay in business long with that performance but if you judge that differently, okay.
As for Capstone, a non sequitar. You can sign an agreement to buy the Taj Mahal. Doesn't mean you own it or will ever buy it.
Capstone deal is literally nothing. A worthless contract with no penalty if $90m in sales is not reached and warrants carry cancellation clause and have no value yet overstate the current value of Capstone.at a fixed price of $200m.
Phil Frost convertible has him in @ $4 a share and he has sold roughly half his position at a higher price. Decent performance and significantly hedged.
Wynnefield Capital is in 1.04m shares @ $9 and has accumulated a $4.5m loss so far.
You cite Wynnefield as an example of positive comp? LOL
Too funny,
It took MSLP the last 3 years that they really just want to be Quest Nutrition without actually owning your own manufacturing.
That is quite the circuitous route and an inefficient burn of capital.
The results are similar to Brad claiming he is an NFL player to currently coaching his winless high school football team at his former alma mater.
stup,
yes I know what that means. You selected one very specific date to attempt to prove a point that is no longer valid.
MSLP is now showing YOY quarterly losses and one doesn't have to wait 12 more months to prove your point irrelevant.
MSLP is presently not growing revenues any longer. The opposite is occurring. Revenues are declining massively quarterly on a YOY basis for 4 consecutive quarters showing declining revenues from core operations of MSLP products. 12 consecutive months of declining revenues trumps your cherry picked one date.
FACT!
easy Jimmy Jams. MSLP stopped paying Accounts Payable and used the incoming cash flow to continue to operate temporarily while selling off $20m of inventory they had in the warehouse but had not paid for.
The problem is one of their two suppliers cut them off and they are going to pay the price in the coming weeks.
You can only channel stuff and not pay for so long. Ask Bernie Madoff.
No new borrowings (due to mutltiple broken covenants on LOC and pledging all company's assets as collateral) and growing AP due to no pay using cash flow for operations is a sign of desperation.
MSLP has serious going concern issues. You will see the official announcement soon. Too late for common shareholders though.
codie, don't leave out Pyatt said gross profit (rev minus COGS) would be 33% and it was 23% in Q4.
COGS is exploding in the wrong direction leaving exponentially growing cash losses in the wake.
Now we have desperation deals with multiple products, channels and marketing partners all at one time with zero distribution other than the post office. That might work for Tarek Ali in Timbuktu Michigan but not in the real world. How long did the desperation deal with Sam's and Walmart last that Bellator Exec called to a tee several monthe ago? 1 quarter?
It was pure desperation to cover the declining sales as customers reject the cheap chinese sourced product.
CEO has recklessly taken on so much restrictive debt that hocked all the company's assets that it is past the point of no return.
Pyatt is desperately throwing anything and everything against the wall at one time praying for a miracle. A hail Mary.
The Cleveland deal, Black line, Energy Sport launch are signs of weakness, not strength. The company has no cash and was cut off by a supplier that will affect existing product retail channel numbers due to this desperation.
They can only play voodoo channel stuffing for so long before the gig is up.
This is pure desperation.
The $8m Line of Credit covenants state that the balance must be paid down to $3m for a period of days every quarter. That would require more than $5m of free cash to meet the covenant.
The $4m emergency collateral loan that encumbered 100% of MSLP assets restricts any further borrowing from any source until that note is cured, so more than another $4m in free cash is required to open the possibility of any new borrowings.
Of course the interest carrying costs are a drain too.
If MSLP found $10m cash under the bench press at the MPSSI, it wouldn't solve any cash on hand problems. MSLP has taken on the toxic debt and is restricted from new borrowings and is losing money hand over fist on the revenues.
Here is what Brad said last time when the call took place half way through the quarter so you would think he would be speaking with so accuracy with 6 weeks worth of sales already in the bank.
Either Brad is a liar or inept or both. To trust any comment from him today would be an example of Einstein's definition of insanity.
Another FACT! according to 2014 10K. BZNE generated $10m of revenue in 2014 at a 20% cash loss. BZNE was $2m cash burn not counting the stock repurchase @ $10 a share that now shows an additional $6m cash loss.
Take BZNE revs out as it is non core and a 20% ongoing cash loser and MSLP is running at a $120m annual revenue run rate on MSLP products.
Those forecasting $220m - $365m in revenue are in Fantasy Land.
$120m (reve) * 77% (cogs) = $28.6 - $76m SGA = $47.4m loss
Now add in the $2m BZNE loss and the likely loss would be $50m in 2015 if MSLP could raise enough fresh capital to stay afloat.
That is a more likely forecast as it is based on proven historical metrics as of today.
All the above numbers are the factual metrics reported by MSLP to the SEC for Q4 2014 and extrapolated out for 2015. No pipe dreams. Just FACTS!
40% revenue slide is very concerning. Company is no longer posting revenue growth YOY. The opposite is occurring. Consumers are rejecting the products.
Cost of Goods Sold (COGS) was 77% of total revenue in Q4 2014 is even a larger factor for the MSLP demise.
Yes read that percentage again. JUST the COGS eats 77% of the total revenue. NO MARGINS!
So funny that no longs address this FACT! 77%
COGS is going up (bad) and revenue is going down (bad).
$19m in SGA expense in Q4 left a $16m loss for the quarter.
No cash and 100% of assets hocked for defaulted loan covenants within weeks of signing papers leave MSLP in dire straights now. No 2016 forecast necessary.
MSLP has been pushed out of UFC. Monster Energy is the new primary and Reebok uniform deal starts in a few weeks that eliminates all sponsors from fighters during fight week and fight and those tacky prefight roll up banners will be gone. FACT = SCARY
Which of these is the best reason to invest in MSLP?
MSLP products contain the cheapest Chinese ingredients and due to using contract manufacturers get no savings on the COGs. MSLP are the worst quality yet cost a lot.
MSLP revenues have declined 40% in the last 4 quarters as more consumers become aware of the Chinese sourcing and other factors.
MSLP is under a very aggressive SEC investigation that eliminates any acquisition.
MSLP has completely encumbered 100% of its assets to a lender that has prohibited any further borrowing until the loans are payed off. MSLP is operating under a temp waiver after defaulting on multiple covenants of the loan only weeks after signing for it.
MSLP has no cash and has been cut off by its contract manufacturer for no pay.
MSLP margins are a joke. COGS in Q4 was $.82 for every dollar or revenue and SGA was $19M in the quarter. MSLP lost $16m in the quarter.
MSLP CEO declared personal bankruptcy and can't manage his household budget. Now we can see why the bank loan covenants were broken only weeks after signing for the loan. The CEO is reckless.
What's to like?
Again these are just FACTS and not opinion.
I just read in the 10K that the CEO of MSLP declared bankruptcy. Wow.
The guy can't even balance a check book or manage his household bills and some investors think he can run a company?
This company is a joke.
I wouldn't loan him a dime.
ANB needs to foreclose on the MLSP assets asap while it still can.
adamsapples,
You get it. Big fan. Enjoy your posts too.
Margins are shrinking as revenues are declining. Management is desperate and throwing MSLP labels on anything they can from contract manufacturers as consumers reject current MSLP products at a record pace. "Got anything with banana in it we can throw our label on?"
BB.com who receives a $100K a month slotting fee from MSLP is barely registering a blip for MSLP on the Top 50 list. Jym and Optimum Nutrition dominate.
New lows coming very soon. Earnings day should be announced shortly.
Will there be a Q & A this time? Like anyone cares. I posted the transcript of Q3 conference call in October when Pyatt was forecasting $50m in revenues in Q4 (Q4 was already half over so tracking sales numbers should be simple) but MSLP came in at $32m and $15m in losses.
Wow!
I already did several times. MSLP products are sourced from ingredients from Integrity Nutraceuticals, a TN importer of cheap Chinese ingredients and materials that are purchased and manufactured by Capstone and Nutra from these cheap Chinese ingredients and materials and then sold to MSLP for premium pricing. MSLP receives no benefit from the cheap cost chinese ingredients and materials. Capstone and Nutra do. MSLP products are some of the worst quality products on the market and Petco stopped selling similar sourced products to pet owners for their pets as they found they were unfit for consumption for dogs and other pets. MSLP has no qualms selling their substandard products though. 4 out 10 former consumers now refuse to buy MSLP products based on the 40% decline in revenue since Q1 2014.
Call MSLP corporate for yourself for confirmation. If you don't want to know the truth or deny it, don't call. I don't care. I have done my due diligence and know the facts.
Check with the SEC filings for all the financial facts, credit facility facts and SEC Investigation.
MSLP still has more than $13m in cash expenses still left to pay just on the endorsement deals in 2015 not counting the minor Cleveland deal that terms have not been released.
SGA is exploding and revenues are crashing.
Doomsday scenario with supplier cutting of MSLP due to non payment that has affected inventory channels and will be reflected in future sales.
New lows coming soon.
I don't care if you buy or sell the stock. I made my own decision some time ago.
More proof of the cash flow problems at MP. Cory is now working for tips to get by.
Brad has promised to train Dan Gilberts little son at the state of the art MPSSI with a squat everyday program.
http://terezowens.com/dan-gilberts-son-is-a-pimp/
That's okay Obrien. Some people like to breathe asbestos too.
4 out of 10 former MSLP consumers have now stopped using MLSP products due to the cheap Chinese ingredients or other factors.
We have seen a 40% decline in revenue in just the past couple quarters.
FACT
If you were really a consumer and concerned about the fact that MSLP sources its products from cheap Chinese ingredients imported from Integrity Nutraceuticals, you could call the corporate office.
They will tell you its true.
Instead you want to throw a temper tantrum as you don't want the public to actual FACTS!
MSLP products are sourced from the cheapest Chinese ingredients and materials in the world. MSLP should be embarrassed they are selling products that Petco has removed from its shelves from being consumed by pets.
Petco won't sell dog food with cheap Chinese ingredients but MSLP has no qualms about selling it in their products!
MSLP products are sourced with cheap Chinese ingredients and materials. The bottom of the barrel for quality.
MSLP products are sourced from Integrity Nutraceuticals, an importer of the cheapest Chinese ingredients.
Petco stopped selling Chinese dog food as it was being rejected by pet owners as being unfit for consumption by pets.
MSLP products are being rejected by the market as more and more consumers are becoming aware of the sourcing of MSLP ingredients and materials.
Revenues are off 40% and trending lower.
MLSP management will not dispute theses facts.
Truth in advertising requires MSLP should be including the marketing slogan: Did you eat your cheap Chinese ingredients today?
Debt to sales the last 2 quarters is 1:4
MSLP has taken on $12m in debt against $73m in total revenue the past 180 days.
This is trending toward implosion quickly.
-$15 million loss last Q. No pay slow pay accounts payable.
MSLP was cut off by contract manufacturer for non payment.
Current lender holds 100% of MSLP assets as collateral and has restricted any further borrowing until repayment or foreclosure on assets.
New lows very soon.
Believe Pyatt? This from the Q3 conference call transcript:
Mikey, wrong.
I did not edit nor change nor omit a single word of the cut and paste from the 10K. It is complete in its entirety. I didn't pick and choose anything other than the complete text from the MSLP disclosure. The train is coming. Keep laying on the tracks if you choose.
FACT!
just because they are detrimental to your investment doesn't mean they are not fact.
The fact is MSLP has been cut off by their contract manufacturer for non payment as cash flow can't cover the bills.
The fact is MSLP revenue has declined 40% since Q1 and is now producing declining Year over Year comps.
The fact is SGA expenses have grown from $12m a quarter to $19m a quarter despite revenue decline of 40% during the that comparison period.
MSLP has no cash on hand after borrowing $12m to cover negative cash flow the past 2 quarters including and emergency $4m loan that encumbered 100% of the company's assets as collateral.
MSLP has serious and immediate going concern issues
All FACT
This is not the usual boilerplate. MSLP has just released very specific disclosures regarding their financial dire straights. Note the very specific debt figures and the factors listed are very specific to current conditions. This type of disclosure is much different than your typical "going concern" boilerplate. MSLP has very serious going concern issues and has been cut off by their contract manufacturer for non payment. Inventory issues are apparent across several platforms.
MSLP signing with Arena Football team in Cleveland makes perfect sense.
MSLP specializes in cheap knock off products (all its products sourced in China) with little to no interest from consumers but hyping the possibilities to desperate levels.
Now it all makes sense. MSLP found its niche. Sponsoring an Arena Football team is brilliant and will transform the company and the Arena Football League into the largest company and league in the world.
Watch out NFL. The Arena League (backed by MSLP) is coming.
Now if MSLP can just perfect that Protein Beer and get it on tap at the Q, I'm in.
I used to feel that the only people interested in Cleveland are just a few Clevelanders as most Clevelanders are still upset and jealous they can't afford to relocate to Detroit. Now I am considering moving to Cleveland. Where is Cleveland?
What does Brazil, UK, etc... have to do with this deal?
TV doesn't show the mascot shooting out tee shirts or CC bars during a timeout at "select" Cavs games that could mean just 1 game and 1 timeout giveaway to a few 3rd level seating attendees with a chinese protein bar shot out of a cannon.
This isn't the NBA Playoffs brought to you by MSLP CC with Charles Barkley and Kenny Smith. Chuck could make the free Combat Crunch deal a loser all by himself if its all you can eat.
my reply is the same.
very significant fixed costs associated.
Benefits are unquantifiable to me. Do I want to push around the mosh pit for a chance of a free CC bar shot out of a cannon by the team mascot or do I want a Quicken Loans tee shirt?
Non event to me as it's like someone giving me a copy of the National Enquirer to show me what Kim Kardashian is wearing during the financial meltdown.
I don't see where I addressed LeBron at all.
This deal for "select" Cavs playoff games is with the Cavs, not LeBron.
Tiger doesn't market MLSP products and he is being paid $5m by MSLP.
I didn't address LeBron but are you inferring he will be eating CC bars during timeouts and while using an MSLP logo towel after flopping on defense?
I don't understand your temper tantrum.
the taste is the least significant factor if you read my posts that have disclosed the dire straights that are leading quickly to bankruptcy.
You are now going to consume your MSLP that contains 100% cheap Chinese ingredients and whey.
Informed consumers choose Optimum Nutrition who sources their whey from 100% USA and Euro farms.
There are some cheap Chinese toothpaste manufacturers too. You interested in their products too?
A: The Cavs deal says it is for "only select Cav home playoff games". That is pretty short term and vague.
B: If "select" mean "all" (it doesn't) Cavs may play as few as 2 more home playoff games and possibly as many as 12 if the Cavs win all remaining series and the series all go 7 games. Not likely.
The costs associated with this promotion are fixed. The benefits are not quantifiable to me. Is this similar to the mascot shooting out some tee shirts with a insignificant sponsor logo on it? A non-event in my eyes and if the PPS volume and movement today is an indicator, I am not alone. Even "if" there is some very short term movement on this news, there are more substantial factors at play that leave the downside unavoidable.
We've already seen what happens when MSLP gets in near the ground floor with the UFC, Monster Energy has now displaced them with all the ring girls logos and center of Octagon. Monster Energy is now the primary endorsor while MSLP will no longer have select fighters logo'd up as Reebok has signed the exclusive for that real estate. MSLP is being pushed out the cage and left with US Wresting team.
Here is the kicker. FACT on why the supplier was forced to cut MSLP off. The supplier was restricted from filing a lien and was entitled to no sufficient legal recourse.
MSLP released this just a couple weeks ago. Now you know why there are inventory shortage issues experienced by some posters here. MSLP was cut off by supplier for non payment due to cash flow issues and additional borrowing restrictions by the two credit facilities that MSLP has already tapped completely.
You just bought old stale inventory that turns over very slowly. You admitted your first choices were out of stock and were forced to buy something you didn't want. Hope you didn't pay full price. MSLP was cut off by their supplier for non payment. MSLP had to borrow an emergency $4m and hocked 100% of the company's assets as a first step to possible reordering.
Now inventory is tight as a result. The supplier is not keen to produce too much and take on more risk with MSLP finances in dire straights. MSLP is now running down old inventory to the bottom for cash flow as they need to with no cash in bank right now.
Supplier is in limbo until MSLP sells old inventory for cash flow to pay the Account Payable to the supplier.
It's still too close to call on whether you will be able to take delivery of your first choice flavor in the next month or two. MSLP has going concern issues.