As a shareholder from only since Dr. Frost's participation and in at $6 per share (avg) on 5k shares I am excited about the future. First and foremost I have been following Dr. Frost for about 15 years. Living in SFL you get to see more of the local news of the man. He is the real deal and he is huge. If he bought his shares at $4 and I bought mine at $6 I am very cool with that. He is in this to make his shares $40. I will follow him everytime. The things that I took away from the recent shareholders letter that were of interest to me are the following:
All of us at MusclePharm believe that our market capitalization today is not a valid reflection of our Company's current underlying fundamentals.
In 2012, we spent considerable time cleaning up the Company's balance sheet and raising other capital to support our growth.
Now, in the first quarter of 2013, after our registered direct offering, we believe we have positioned the Company to continue growing with the proper type of capital structure that will allow us to focus on profitability.
We are now debt free. We expect to use the remaining proceeds from the offering to launch new products, seek to expand internationally, and seek to increase our U.S. sales force.
The reverse split was a necessary step for us to seek a listing on a stock exchange. We expect we will have such a listing this summer after we post our 2013 first quarter results.
We project we will increase our gross revenues in 2013 to over $100 million.
We recently renegotiated our terms with our manufacturers and have refined our distribution model, and as a result, we should experience better sales margins. On top of this, we have reviewed our operating costs and are cutting several non- essential expenses.
but all of us here at MusclePharm have the goal of reaching $500 million in annual sales -- but only at a profitable level.
So with this said, I am happy to be a new investor and very happy that I did not have to put up with all the BS that the old investors had to put up with. With a new management team that has only been on board for a year or less and has built much larger companies, I feel we are in great hands. Brad is not running the day to day. He is a figure head and this company is being run by the likes of Bluher, Davis , DeLuca and Gregory. With Frost involved this will only go up. It will be painful since this is a low float stock and you will see it run up 2 bucks only to come back 1.5 then up 3 then down 4. But it will be in an uptrend so don't sell. In 2 years when they can get sales to 200-300M level the stock price will be at that $40 level. No one will complain about how lame Brad appeared in the Red Chip video. He has no business skills at all and he managed to build a $78M company. He now has experienced leaders throughout and Mr. Frosts money to help along the way.
