per an earlier reply post of mine, now that earnings are out and seems like same ole same ole, gonna continue watching closely and if pps goes down a bit more and nothing bad hits the fan, gonna add a bunch, lower my cost basis so as to unload after a hopeful rebound near term. then will see closer to next earning report how the pps action is going. If Brad remains then I ain't for sure!
Or it is more likely that they had large changes in some of the line items in the asset and liabilities columns.
Between the first and second quarter Accounts receivables outs standing dropped 5.6 million, meaning that in the quarter they brought in 5.6 million more in cash than they sold in product for the quarter
More importantly between quarters they ran up the accounts payable over 9 million dollars.
The extra 5.6 million in cash coming in had a positive effect on cash flow for the quarter.On the other hand the extra 9 million in liabilities will not have an effect on operating cash flow until they find money to actually pay the bills.
Too bad it the loss wasn't from non cash compensation and the positive cash flow was achieved my faster collection and slower bill payment. That method of cash management only works in the short run.
$4.2M in cash, $3.5M of operating cash flow. But yeah, I can't figure out how they can show operating cash flow with huge operating losses either.
The loss was primarily attributable to non cash based compensation to employees and big name sponsors. That is why EBITDA and cash flow grew, but loss was still high. This type of compensation, while a necessary evil in this business space, does not effect the company's ability to continue to grow top line and cash flow. Q 3 should be closer to break even, but I agree the perception as it relates to Brad is very unflattering.
Sentiment: Strong Buy
Totally agree with you. Brad just needs to cool his jets, and take a quarter or two to strengthen up the balance sheet of MSLP. Then do more expanding. It seems every quarter they are doing so much to grow the revenue streams at such exponential rates, that it is actually hurting the company more than it is helping. I think $4/share is a steal, as long as they turn it around in the near future and start thinking about the longevity of the company
When I first bought MSLP they were doing about $50 Million per year in sales. $100 M looked like a nice target but now they're looking at probably doubling that this year. Brad is an idiot, we all know that but even though he's an idiot I'm still buying at these unbelievably low prices. Something's gotta give. Either Brad has to go or another co. will buy MSLP or, and I know this is a long shot, but, just maybe Brad starts doing what's right for the co. I don't know what will happen but I do know $4/share for this co. is just too cheap. I can't see MSLP being worth less than $8/share even with Brad as their leader. They have a great product, a huge following, good endorsers and $200 Million a year in sales. This would put MSLP in the $40/share range if the co. was run properly. You find me a co. that does $200M/year in sales that turns a nice profit selling for any kind of cheap PPS. I know MSLP does not turn a profit but it has to someday. That day may come after Brad is no longer running MSLP. Either way, at $4/share this is a great deal.
Hopefully this past quarter they strengthened their balance sheet, instead of spending insane amounts of money to expand the business at unrealistic rates.
lets hurry up and get there already :) this slow road to final painville is frustration plus! if nothing totally earth shattering comes out along the way, even a horrible earnings report, I'm tripling down, lowering my cost to 3 and change, and saying bye bye once it rebounds just that little bit as long as Frost is in with me!.
and now today the volume has picked up besides a decent degree and more downside sadly(: got to be upcoming earnings report or bad news of some kind ahead. I doubled down last dip at 3.85 so my current break point is 6.72 should have just blown out shortly thereafter. I it goes back t there or even lower, and news shakes pps out, I'll do the same again and then bye bye once it rebounds just past that point even though I still believe longer term company will either improve or get sold. Think Frost is still involved so if so there's hope!
No one is interested in mslp anymore perhaps. I just don't know why there is a continuous decline when the product seems to be selling decently. I guess some internal shuffling is going on with only few people in the know.