Muscle Pharm Corporation (MSLPQ)

[justlovethegame]

You analysis of the core business may or may not be correct. What you both miss is that BSN was a private company and MSLP is a public company with a financial structure teetering on the brink of demise for the current shareholders. The original investors in a private company are incentivized to recapitalize the company they own. IE: you invest 100k and know I tell you that we need 15k to go forward or we are going to shut down. You would protect your equity(initial investment). If you bought 10k MSLP at $1.00. Do you feel any obligation to protect you 99.5% loss. of course not. MSLP needs new investors to support there growth. The analysis you and odessa give may bring in those new investors which is good for the company but at the current PPS greatly diminishes the prospects for the current shareholders. The lower the share price the greater ratio when the r/s occurs. The greater the ratio the less bother old shareholders become. I was chastised for spelling recently so i would like to apologize for any and all syntax past,present and future.

Great analysis, Odessa. I mentioned in one of my previous posts that operational profitability for BSN at the time they were bought out were not far off from where MP is today. If you look at the following press release by Glanbia, you will see BSN's sales were $135.4 M and EBIT was $10.1 M (adjusted EBIT was $16.3 M). Even if we take higher of the two profit numbers, adjusted EBIT of $16.3 M, you will notice they actually were not that profitable. I guess they broke even at $70 M sales-level and made money of revenue in excess of $70 : 25% on $65.3 M or $16.3 M. How does it compare with MP's current number?

webink: http://miranda.hemscott.com/servlet/HsPublic?context=ir.access&ir_option=RNS_NEWS&ir_client_id=3407&item=583915836281170

Optimum's profitability was better as they sold $50 M/year more than BSN. Their operating profit was $32 M on sales of $185 M. Again, $16.3 M + 25% of $50 M = ~$29 M. That number also compares well with MP's numbers. The company has a lot of governance issues, but their growth is phenomenal and operating metrics are comparable with industry leaders'. We will see better results going forward. JMO