Muscle Pharm Corporation (MSLPQ)

[Odessa99]

Bulldog2, your statement below could not be further from the mark. They will report in the neighborhood of $20 million in revenue for full year 2011. With a gross margin percentage of 34% (which has been the approximate GM runrate for the past few quarters, there would be about $6.8 million of gross profit this year. That would leave about $560k per month available for expenses other than direct product costs. The last I had heard, MP had about 14-15 employees. Even if they have doubled that employee count, there's should be no need to spend more than $560k per month on 'daily expenses'. The big money they have been spending is on endorsements, promotion, and marketing. All to grow the brand and sales volume. From what I can tell, the spending has done exactly what it was intended to do.

Let's face it, most of the dilution is NOT coming from planned expansion