Take a company like MSLP who now has 605,930,613 shares outstanding i.e. sold at the end of the year but 118,649,439 shares at the beginning of the year meaning it sold almost 500,000,000 shares in a single year. The problem in penny land is that outstanding shares are only updated quarterly so normal investors never see dilution as it happens and the market caps (outstanding shares times the end of day trading price) remain relatively stable until financials are released quarterly. This actually benefits penny land CEO's in two ways. First, dilution is hidden. Second and worse, companies like MSLP that have massive dilution quarterly actually see a significant immediate increase in market caps at the end of the quarter when financials are released. Notice that the MSLP market cap jumped substantially (almost quadrupled) when its Q was released.
Over a period of time, investors realize the problem and the share price starts to drop just like you are seeing now.
John Bluher, chief operating officer of MusclePharm. "We are not only focused on growing our business but also moving as effectively as possible to qualify for listing on a national stock exchange.
The recently announced retirement of all of our convertible notes, combined with the addition of several new customers and the Board's recent actions have rapidly moved the Company toward achieving our goals."
April 30, 2012 (MMD Newswire) -- Pyatt Brad J purchased 672,000 shares of Musclepharm Corp stock, or $12,478 worth, as noted in an SEC Filing today. As reported in the filing, the transactions occurred on April 27, 2012. As noted on April 30, 2012, Pyatt Brad J's purchase was done directly over 10 transactions on April 27, 2012. The share price ranged from $0.02 to $0.02 according to the regulatory filing detailing the transactions.
If we look over the past 12 months, Pyatt Brad J has sold no shares of Musclepharm Corp stock. Over the same time period, Pyatt Brad J has purchased no shares of Musclepharm Corp stock.
Let's take a quick, high-level look at insider trading at Musclepharm Corp over the past 12 months. No shares of Musclepharm Corp stock were sold by company insiders. Over the same time 12 month time period, 2,982,000 shares of Musclepharm Corp, for a total value of $62,042 were purchased by company insiders.