Has the company ever really explained why the margin is so low? As one of the major players in the industry their manufacturing and raw material costs should be as low as any other company.
Could it be they are basically giving away the products at a cut price to falsely inflate revenue? After all that is how the management are compensated, on revenue rather than profit..
MSLP develops their own products, as does most other companies. After they develop their product they pay a manufacturer to produce it. All of the costs to develop this product is paid for by MSLP since it's all in house development. They have a team of people who do nothing but R & D, this team is responsible for the creation of all the products MSLP has on the market right now and everything to come. Now, as far as the expenses. All of their expenses come out of their income. Yes they work the costs of man. into the price of the product but when they calculate their profit, or lack of profit, all the expenses are deducted form their income to determine what the profit is. So if their rev. is $1 million and the costs to man. product was $400 thousand they have $600 thousand minus all other expenses. If all other expenses are higher than $600 thousand they lose money but the man. costs do get deducted from their income. In the case of MSLP their man. costs have been too high but they've been working on lowering those costs.
Sentiment: Strong Buy
Rather than trying to make a smart remark, why not school me and explain where I am wrong?
As I said cost of manufacture is in the product cost, so is already in the gross margin calculation, thus does not have any additional effect on the bottom line..
chaines, you should not own MSLP and then you won't have to worry about the CEO anymore.
The manufacturing cost does not come off the bottom line. It's part of the cost of goods and thus is also added to the product stock value. So if they manufacture 10 MUSD of product, it has cost them 10 MUSD, but they cancel out that cost by increasing product stock value by 10 MUSD. It only comes off the bottom line if you sell it for less than it cost you to make it.
Also their cost for R&D is rubbish, they have no in-house manufacturing, so their R&D costs should be zero, as contract manufacturers provide that as part of the service..
He is NOT a world class CEO but neither are thousands of other CEO's who run their businesses very successfully. I admit he is not the best CEO MSLP could have but I do think he has what it takes to make this co. profitable. If you think he is not capable of performing his duties you should not invest in MSLP.
The manufacturing cost, R & D, promoting the product and other things associated with the product all come out of the bottom line.
It's not even close to that bad. He has made a few bad decisions and maybe spent more money on things than he should have but he not out there buying everything he wants with the MSLP credit cards. MSLP will make a profit but they keep coming out with new products and all these new products cost money to develop, manufacture and promote. Hang in there there will be a profit and it will make the stock go up, A LOT!
Sentiment: Strong Buy
agreed. i had MSLP at about a $4 average, and sold out of it around $6.8 recently. i am going to stay away unless it gets down in the low 5's. certainly the potential is there, but i dont trust current leadership with my money.
just saw that interview. mslp should acquire them and have their ceo take over! .... if only lol.
Not a private placement, same number of shares outstanding remain, Consac/ryan Drexler had 10 days from the moment they crossed the 1% threshold of share ownership to file schedule 13D, which they did. This is unrelated to Brad's shares...this is a positive move for investors but not necessarily for Brad Pyatt (although an investor himself) since Ryan might end up having more influence in the long run when it comes to MSLPs future than Brad can or would want to. At this point, investors need to sit and wait for the next card to be played, 6 months or less.
Can someone please tell me how the Consac shares were acquired? Was this an open market purchase or a private placement. There was never any real volume during the rise from 4-7 and with an average price of the shares they own at $4.10 it looks more like a private placement. Maybe part of it was Brad's 100K share thing that happened a few days ago.
Sentiment: Strong Buy
Great article on interest in MSLP: Wynnefield Capital, Weatherbie CApital, Paradigm Capital Management, Perritt Capital Management and Fuller and Thaler Management. Momentum is building. about 10.04%
That's a fair statement. btw, there is plenty of information out there, Ryan is the president. Historically buys in a controlling interest and forces a sale. The only Con I see is, depending on where you bought in and where the stock is at the time of the offer you may or may not make profit. Ryan's consequence is usually felt within 6 months of buying in, naturally, it is in his best interest to force a sell of MSLP at the highest possible valuation since he bought in in the $4-$5 range, so should be a positive for most MSLP investors.
Thanks for the information! Not too much out there about Drexler and Consac...is he a sole employee and just works under the name Consac LLC? I bought in on the high end and may average down now with this recent news. Could help get me back to break even hahahaha.
Based on Vitacost and Quiksilver...it doesn't seem that Drexler is interested in a turnaround. He solely gets involved to produce a sale, is that a fair statement?