Muscle Pharm Corporation (MSLPQ)

[TheExpertHimself]

Dymatize was expected to make approx. $38 EBITDA in 2014 on $200 million (my guess of revenue as revenue was $145 million in 2013 with EBITBA of $23 million). The $38 EBITDA expectation was given by Post Holdings.

Let's assume that depreciation is like $8 million, that gives us $30 million net income before taxes.

Let's compare to Musclepharm that generally sells it's products at a premium to Dymatize. So, with approx. $200 million revenue and assumed same efficiency of operations, deducting the manufacturing cost disadvantage of $15 million and the cost of endorsements and sponsorships of $13 million. I see Musclepharm as very close to break even.

Not only that, with same efficiency as Dymatize, and similar prices at Costco and Sam's club to what Dymatize sells for through specialty retailers.
Man, I see that MSLP stock flying through the roof when Musclepharm breaks $250 million dollars revenue.

Dymatize might have a cost advantage over Musclepharm and spend less per sold unit, but Musclepharm is doing okay, it's in Walmart, Sam's Club, GNC and Costco at same time, and it's prices are high.

There is a protein movement going on, and Musclepharm is the one with the exciting packaging that looks familiar to the American junk food we all love.