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Wednesday, 12/07/2011 1:40:33 PM

Wednesday, December 07, 2011 1:40:33 PM

Post# of 80876
I'm interested in any feedback regarding my NBA All-Star game MSLP analogy below. The more critical the feedback, the more useful it will be:

Let me preface this analogy by reiterating my view that the share issuance terms of Muscle Pharm's modified executive bonus compensation agreement are not reasonable, and I've never seen contractual terms like that for any company I've ever invested in. Now that I've gotten that out of the way, here's the analogy I'd like to share. It has to do with the product sales at bodybuilding.com. Suppose the supplement industry were the NBA. And since bodybuilding.com is the world's #1 online supplement store, let's think of them as the main stadium where the basketball games are played. Taking the analogy a little bit further, let's consider each of the 500 or so companies that sell their products on bb.com are the teams in the league. Each of those companies (teams) has products (players). In this analogy, the Top 50 Best Selling Products would be like the players selected for the NBA All-Star game. There's about 30 companies with products in that Top 50 Best Selling list. So at least 470 companies (teams) have no players going to this year's All-Star game. Muscle Pharm, on the other hand, not only has players selected for this year's game, they have 6 at the moment. So let's recap. Since there are more than 12,000 products for sale on bb.com, it's like there are 12,000 players in the league. 50 are selected for the All-Star game (Top 50 Best Selling), and Muscle Pharm has 6 of the 50, while 470 companies have no payers in the game. Not only that, but 3 of the 6 players that Muscle Pharm has in the All-Star game have only been playing in the league since July of this year. Would there be any doubt that team MP was a dominant force in the league? Keep in mind that every one of the 470 teams without a single player in the All-Star game have dreams and aspirations just as the mgmt of MP has. They wake up each morning with the desire to be bigger and more popular with their fans (customers). But Muscle Pharm is actually doing it, every moment of every day. It is evidenced by their representation at industry trade show events and on their facebook page. It is evidenced by the exceptional reviews for their entire product line on just at about every supplement websites seeling MP products. The unfortunate reality is that early common stock investors will likely never see their orginal investment value returned (due to the extreme share dilution that it took to grow the company). But also a reality is that investors entering (or adding to their position) at the current stock price will likely see a return many times their investment. As always, simply my opinion.


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