Replies to post #53900 on Muscle Pharm Corporation (MSLPQ)

[crossroad]

That requires substantial investment and more dilution. I assume that may be the next step. Many members of this board are talking about Mr. Frost's involvement with Musclepharm. I think all of us need to understand that he got a deal. He is up 150% already in just two and a half months. Their Q4 sales indicate they have a long way to go and the valuation here is not attractive yet. With the capex of $20 million for manufacturing facility, I expect at least 30% more dilution on top of 8 million (fully diluted as of today) plus 2 million (for additional working capital as they may have lost a couple of millions in Q1, and for exec. compensation). 13-14 million shares with negative margin and flattening growth don't justify a valuation of more than 1x sales or say $70 million for the company. On a fully diluted basis, factoring in additional dilution for working capital and exec comp., sp over $8/ share is not justified. It may have a floor at $8.5 (the latest private placement price), but sp close to $10 does not offer any value here. There is a big difference between $27 million (not clarified in PR prior to release of 10K - they again played the same game) and $16.5 million (revealed in 10K). JMO.

[avocet]

At what point in the history of those companies did they first buy or build their own manufacturing facilities?

A company like MP that starts from scratch in a garage and with money lent by friends and relatives is hardly in a position to buy a sophisticated manufacturing facility right from the start.

At a prudent point in their expansion, MP will establish its own manufacturing facility.

Their managerial missteps and wrong turns have temporarily postponed the point at which they should have been able to buy or build their own manufacturing facility, but aren't we still talking about the OLD MSLP and not the NEW MSLP?

With Dr. Frost and his contemporaries involved in the decision making process at MP, I am very reassured that MP will be getting their COGS way down from their more recent levels by means of a whole range of actions up to and including acquiring their own manufacturing facility.

I couldn't think of better advisors than Dr. Frost and his colleagues in determining the most prudent HOW and WHEN for reaching this objective.

Every single bit of good advice Dr. Frost is giving to MP management directly or through his associates is going to optimize his investment in MP.

Don't think that MP has overhauled their business plan without a heavy and direct involvement by Dr. Frost and others who are guiding a contrite and receptive MP management team.

For those investors who are patient enough, it will be a WIN WIN WIN situation for all concerned INCLUDING the pre REVERSE SPLIT investors in MP.