Muscle Pharm Corporation (MSLPQ)

[TheExpertHimself]

Musclepharm needs to send out the shareholder letter by the end of this week.

Musclepharm cannot delay announcement every time they are negative. Something like that gives investors the impression that the company is systematically hiding things.

The reaction to the stock price will be much less when negative things are communicated right away than when delayed to the last moment.

Among other things, investors speculate whether the management is trying to time announcements that include employee incentives plans...in order to maximize what it can take from shareholders....that is a signal that the goals of managers and shareholders are not the same.

Creating too much information asymmetry between company and the market is very unpopular with institutional investors....they need transparency from the management's side into what is going on with the company.

Musclepharm had a tradition of a shareholder letter prior to annual reporting....so, it should stick to that.