Muscle Pharm Corporation (MSLPQ)

[TheExpertHimself]

Brad doesn't need more dilution.

There is a lot of unfinished business with the current endorsements, so signing more top athletes is completely out of the question.

Also, there is approx. 1 million shares left for equity compensation. Of these 1 million shares, Brad can realistically only grant 200,000-300,000 to himself. The company has grown so it should be expected that he will be wearing less hats and that he will have to grant more than 2/3 to other executives.

Finishing the authorized shares for equity compensation over 1 or 2 years would be a negative signal....It would signal greed and that another dilutive capital raise was around the corner.

The stock price is vulnerable and no shareholder value has been delivered to shareholders for 3 years...so, it is really hard for executives and board members to be greedy at this stage.

My guess is that less than 1/3 of the remaining shares for equity compensation will be issued in 2015.

Basically, expect around 3% dilution in 2015 and expect that the CEO will be receiving moderate compensation in 2015 compared to 2014. Brad will make a lot of money in 2015 though as his stocks double in value....and he may receive a very juicy bonus in 2016 if Musclepharm starts making tons of money.

I think that the next dilution will come whenever Musclepharm finds a great acquisition target among contract manufacturers.

When it comes to Brazil, more than likely Musclepharm will find an adequate contract manufacturer that may provide Musclepharm with an option to buy in the future. Brazil is uncertain territory, but Rio de Janeiro and Southern Brazil with Sao Paolo and Belo Horizonte as dynamos do offer quite the potential.