Muscle Pharm Corporation (MSLPQ)

[turokman]

Propopkon, thank you for taking the time to share your thoughts on my argument.

My argument was out to counter the one posted that said unprofitable companies are bad investments. Clearly investing in any company, whether or not they are a cyclical play or turnaround play have their risks - especially they are unprofitable.

Although my example USG, was indeed a turnaround play, it still required navigation by it's leaders and it has to be able to raise cash to continue during the difficult time in the housing downturn. Shareholders who realized that housing was going to eventually rebound were substantially rewarded that the company was able to raise the necessary cash to continue while they were unprofitable and bleeding money.

In principle, this is similar to what MSLP has done - they raised the cash and navigated the difficult waters that they created for themselves! Although they have never posted a profit due the costs of their rapid expansion, it is clear that if they stopped all current growing efforts and fired 95% of the staff, they would be able to turn a profit. It is this fact that has kept me adding to my position during the downturn - the intrinsic value of the brand is worth more than the market cap!

These guys have bigger plans though, and with deeper pockets involved I think they will be able to tackle their grand plans without nearly as much growing pains.

All in my opinion.