Muscle Pharm Corporation (MSLPQ)

[CWS1987]

I appreciate the analysis you've done on their actual financials, but I think you're off-base on the Brad golden parachute theory. They likely won't fire him, and even if they did, they could make a strong argument for having cause. His actions led them into an SEC investigation that hurt the company, and he publicly stated something to the extent of "I was an inexperienced executive and should have known better... blah, blah, blah" in a quarterly call last year. I imagine that would be enough "cause" to fire him, if they wanted to deal with the legal challenge. The poison pill is concerning, but I imagine if a company were to buy MusclePharm (which I think is less likely than many others on this board), they would do it on the condition that he not exercise that option.

I have to imagine, all of his terrible business acumen aside, that if the choice is watch the company go bankrupt and his remaining shares become worthless, or take $7.50 per share (sale price of about $100 million), that he would forgo the 300% bonus option.