Replies to post #73680 on Muscle Pharm Corporation (MSLPQ)

[Odessa99]

One option, i suppose, would be to merge with a company that is generating free cash flow (in a reliable stream), but with few ideas. MP could then excel at their strength (marketing and product development), while the other folks could provide the funding organically and internally.

But in regard to the cash situation, I just don't see where the crisis is. As of December 13, 2014 , current assets (Cash + Accounts Receivables + Inventory) amounted to about $39 million, whereas current liabilities (Accounts Payable + Accrued Liabilities) amounted to about $35 million. That means there is a working capital surplus as of Dec 31, 2014. If the lion's share of the inventory they are holding is not obsolete (without seeing a detailed breakdown to crosscheck against the hot selling products, there's no way for me to know), that inventory will be converted into cash and applied to the rather large payables figure.

I can't comment on how the working capital and cash positions have changed since Dec 31, since the Q1 financial statements are not due yet. But it would appear, from the figures on the year end financials, that the may actually be doing a fairly decent job of juggling the cash and the financial obligations.

As always, simply my opinion.

BTW, it was already about 10am when I remembered there was a conference call that morning, so I have no idea what was discussed on the call. Did anyone of this board post summary notes for the call?

How do they overcome the financial situation? They are burning cash. They are breaking all covenants on their loans. THIS IS WHAT SCARES EVERYONE. I agree with all those other things, but their cash management is ridiculous + the fact they didn't fucking explain it in their conference call...are they selling out shareholders to their creditors?

MSLP

[PanchoJimenz]

I believe that their cash management is fine. I don't know what your business or financial experience is, but if you don't have anywhere close to the experience that their executive team has, you should consider the possibility that there are many things in this regard that you don't understand. I explained working capital and that was followed up with another post from Odessa. Additionally, we don't know what they have cooking. For example, we did not know that they were going to invest $2.5M in a company or that they would receive $4M in financing.

Not to accuse of anything, but investors need to give executives more credit, especially if those investors have no experience running a company.

I like sports analogies. When the Seahawks drafted a short qb, most people, outside of Virginia, North Carolina, and Wisconsin, including the fans in Seattle, said that they made a huge mistake. When they named him their starting qb, the fans in Seattle went nuts. They claimed that their head coach and gm should be fired because they did not know what they were doing. Here you had millions of people with no coaching experience or playing experience calling one of the most successful college coach stupid.

Three years later, after 3 straight playoff appearances, including 2 super bowls, people have realized that they did know what they were doing. As they explained in the ESPN piece, "Waiting for Wilson," nobody knows what their strategic plans are. Similarly, we don't know what MP's plans are, outside of what they decide to share with us. So, we need to give them more credit. Four million dollars to $177M is unprecedented. Give them more credit and have patience.