Muscle Pharm Corporation (MSLPQ)

[TheExpertHimself]

Nature's Sunshine probably looks more undervalued to Wynnefield Capital, since it is still piling up on that one and not on Musclepharm.

http://finance.yahoo.com/q/is?s=NATR+Income+Statement&annual

http://finance.yahoo.com/q/bs?s=NATR+Balance+Sheet&annual

http://finance.yahoo.com/q/cf?s=NATR+Cash+Flow&annual

Could be that Musclepharm's income statement and balance sheet are not particularly attractive to institutional investors. Wynnefield Capital might feel that Musclepharm is facing more problems than some weaker foreign currencies flattening out growth like as in Nature's Sunshine's case...it could be a matter of lacking focus and liquidity, and an inability to keep the inventory at par levels for the various SKUS Musclepharm holds.
My feeling is that Musclepharm might do a whole lot better longer term if it stabilized the business and forgot about the negative effect of dilution from a capital raise for a minute. It looks like it does need capital, and it appears like it needs to focus more on what it got, by fixing the home base, before it plans for more expansion in product lines, and foreign markets.

Nature's Sunshine had some foreign currency issues and some $26 million Capex, that lowered cash holding...but it still holds plenty cash to cover for unanticipated expenses, it's revenues are still decent, and the inventory levels are kept rather constant.

Musclepharm's inventory levels have kept on going down, until it probably reached such a low point that made it difficult keeping it at par, and filling in orders. An inventory is the same as a bank account, if you take more out than what you put in, eventually it will empty out, and you might be broke....unless somebody gives you a hand. My feeling is that Musclepharm cannot do without a hand, digging itself out of this hole, turning around everything just like that. My feeling of how things are going might be wrong though, time will tell what's up with Musclepharm.