Muscle Pharm Corporation (MSLPQ)

[prokopton]

Muscle Pharm has everything except the one metric that counts most. High revenue, high growth, high profile athlete endorsements, top selling products in their categories. But no profit.

High revenue, high growth, and no profit:

1. Takeover target. More mature company will implement cost-cutting procedures. Good for some longs, depending on our entry point.

2. Continues to be the dilution machine in order to fund operations. Worst case scenario and not good for longs, especially for those who got in early.


High revenue, high grow, and profit:

1. Self-sustaining company and stock will eventually take off to reflect that. Good for longs.

2. Takeover target at a premium price. Good for longs.

Muscle Pharm has to reduce its cost of goods sold (cogs) and/or cut operating cost. We know the revenue is there.