Muscle Pharm Corporation (MSLPQ)

[TheExpertHimself]

The company needs to change.....first of all the board and the top management need to understand that excessive dilution for stock grants to employees and athletes is what is killing the stock price.

It accomplishes nothing as
1) nobody wants to invest in a stock that is worth 20% less by year end....and worth 50% less after 2 years
2) the company can never post a profit when stock grants are accounted for.
3) the company got little flexibility to raise capital at reasonable costs.
4) the company's reputation is very bad because of 1), 2) and 3)

Had the dilution been half of what it is, the employees stock holdings would be worth much more, as the stock price would be $20.

I would rather own 500 stocks worth $20, than 1000 stocks worth $4.

I would rather see Musclepharm taking a sufficient loan or raising capital for financing than executives having to pledge their personal stock holdings. It is all a result of the excessive dilution policy of the company, where more and more stocks are issued for nonsensical purposes that don't create any value whatsoever.

Somebody probably had seen enough of that, and after reading the Bloomberg article, he/she just pulled the trigger.