Muscle Pharm Corporation (MSLPQ)

[turokman]

I second your valuation of $90 per share, or 1 billion dollar market cap.

I stand by my one billion dollar valuation possibility for MP within the next 24 months. For those that have not seen it, here it is again (but I'd like to add OPK to the list, with a market cap of about $5 billion, an accumulated deficit of $426 million, and booking losses every quarter)...

Hypothesis: Muscle Pharm could be valued at $1 billion within the next 24 months. How can such a seemingly absurd statement be made? Because I found a number of NASDAQ and NYSE companies with quarterly revenue in the neighborhood of $10 - $35 million with a market cap of between $800 million and $1.1 billion (market caps as of mid Sept).

Some examples that I've found are NASDAQ:HALO, NASDAQ:PFPT, NYSE:GIMO, NASDAQ:ELGX, NASDAQ:HSTM, NYSE:STAG, and NASDAQ:EPZM.

some key stats
HALO: (market cap of $1 billion; booking losses every quarter; accumulated deficit $340 million)
PFPT: (market cap of $1 billion; booking losses every quarter; accumulated deficit $190 million)
GIMO: (market cap of $1.1 billion; accumulated deficit $22 million)
ELGX: (market cap of $1 billion; only recently turned the corner into profitability; accumulated deficit of $200 million)
HSTM: (market cap of $950 million; accumulated deficit of $21 million)
STAG: (market cap $870 million; booking losses nearly every quarter; accumulated deficit of $90 million)
EPZM: (market cap $920 million; accumulated deficit of $62 million)

What most of these companies have in common with Muscle Pharm is the high rate of sales growth over the past few years, as well as their long history of net losses while growing sales. Some have reported profits in the more recently completed quarters. For those unfamiliar with the term 'accumulated deficit', it refers to the cumulative losses since inception. Companies with a solid track record of positive earnings would have a 'retained earnings' balance, rather than an 'accumulated deficit' balance.

I feel the above examples make it at least plausible that Muscle Pharm could achieve a market cap of $1 billion within the next 24 months. As always, simply my opinion