Wednesday, May 09, 2012 2:23:34 PM
I see them buying back enough shares, and retiring enough of the unethical bonus shares, if not all, to get us to a higher exchange.. I know it seems pretty far fetched, but so did a share buy back when I called it the night before the PR..
I honestly think that they would benefit more by buying shares on the open market and retiring their bonus shares back into the A/S.. I actually am starting to lean more to this scenario because we have asked them about this and other things in a letter that was sent.. and they are PR'ing answering some of those important questions.. For example we asked about a share buyback or r/s.. and about bonus shares,.. and how they plan to clean up the share structure..
I am taking the share buy back PR as a subtle answer to we are buying back shares and no r/s. I am taking the corporate governance PR and the Form 4's as a sign that they will release their bonus shares back into the a/s.
With 1.44B O/S they can retire their approx 472M bonus shares leaving @ 968M shares.. If they want to retire enough shares to uplist they will need to retire about 900M shares.. With all the information that is public right now this seems almost more of a dream than a possibility, but so did a share buy back when i called it, and so did $20M/qtr when i called that as well...
side note... retiring 900M shares @ the .02 level will cost about $18M, and once its public light it will bring much more than that back into the company.. they should be able to cut back on enough between now and August 15th and generate enough sales to be able to do this... i have faith in them
I'm not claiming to be the all knowing.. but when i wrap my brain around all the facts and their end goals of a major exchange, coupled with the small glimpse into their personalities that we can see... i come to the conclusion that if there was going to be a r/s they will be keeping their bonus shares.. and they wills till have enough to make a killing with no need to by more shares. However, if they do not keep their bonus shares they will need to pick up shares before it takes off..
So what have we seen that makes me believe they are not keeping bonus shares or doing a r/s?
The corporate governance PR states new long term incentives based on net profits and not sales.. and compensation changes.. if they are changing their compensation from last year then why not their bonus shares from last year as well..
perhaps the new profits incentive program will back date, and IF they would have made a net profit they could keep the appropriate amount of shares in relation to the new bonus program, but they did not therefore they will need to return them.....
They are buying back shares at this level WITH US... which almost solidifies my thought that they will not keep the bonus shares.. also the insider buying also tells me that they expect the stock to make a huge run.. if it were to r/s anywhere from these levels then buying now would be pointless because the stock would surely fall after a r/s from these levels and you could get in then..
Back to the buy back of 900M shares. i think this is possible for this reason. If you look at the volume recently, i believe the PR's are to provide liquidity of the stock. If shares are not exchanging hands then any share buy back would be ineffective.. I am expecting to hit $100M in sales by the end of quarter 3... if not there then extremely close and I am expecting between $120M-$150M for the year..
Don't forget schools are back in August and training camps this summer.. and i expect the MP presence to become massive during this time.. for the highschool, collegiate levels.... and with this extra income MP can buy back even more..
check the volume here
http://stockcharts.com/h-sc/ui?s=MSLP&p=D&yr=0&mn=3&dy=0&id=p92748393527
Also they will effectively have until August 15th to buy back as many shares as possible.. This is because a share buy back presence will be minimum on the Qtr1 10Q.. but if they truly have started the buy back will be most noticeable on the 2nd Quarter 10Q, and the pps will take off then.. This essentially gives them 1.5 quarters(4.5months) to buy back as many shares as they can.. if they can reach their golden number then no r/s necessary if they cant then once the pps drives up resplit from there..
The reason I say they have 4.5 months to buy back because as soon as it becomes evident in the 10Q i dont believe any MM will be able to manipulate it.. the O/S and float will be significantly decrease and we should take off.. Which is why they need to buy back as much as possible as fast as possible.. this would fall in line with their statement as uplisting as "effectively" as possible
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