Muscle Pharm Corporation (MSLPQ)

[Odessa99]

Muscle Pharm was cash flow positive (from operations) for Q4, 2014. The way you can tell is that the red number for the 12 months ended 12/31/14 is smaller than the red number for the 9 months ended 9/30/14 (see below). And Muscle Pharm was approx cash flow neutral across the entire cash flow statement (operations, investing, and financing).



As always, simply my opinion.

Odessa99

They are not mutually exclusive. $8m draw down on the line of credit is credited as positive cash flow. This type of positve cash flow by drawing down similar new borrowings every quarter is not sustainable without earnings or other forms of capital raising to service debt. Cash flow does not consider the source of the cash received.

When the author further researched the quality of cash flow he changed his positive opinion to heavily negative. That is why continuing due diligence is important.

MSLP