Muscle Pharm Corporation (MSLPQ)

[Odessa99]

The way I figure it, MP is now doing a minimum of $1 million per week in sales. I arrive at that figure based upon the following information:
About $8 million in sales for the 4th Qtr, with at least 40% of that in the final month of the quarter (each month would represent 33.3% of the sale for that quarter if sales were not growing). That amounts to more than $3 million in sales for the last month in 2011, which is about $750k per week.
With a minimum of $1 million per week in sales, and a gross margin of 31%, this equates to a gross profit of $310,000 per week. If we assume SG&A expense of $210,000 per week, and no sales growth for the rest of the year, there would be earnings of no less than $5 million this year. For a company doing a turnaround from etreme losses to moderate profits, and having grown sales at a healthy pace, a multiple of 30 x earnings would not be unusual (and might even be on the low side of valuations). With the current outstanding share count, and a computed valuation of $150 million by year end, the pps should approach ten cents sometime this year. At the current share price level, that would leave about 500 percent gains on the table for money invested now.

As always, simply my opinion.

MSLP