Despite the recent gains, price to sales for MSLP is still less than one. The recent uptrend was mainly based on the equity funding raised by MSLP at $8.50. At that time the price was lower and, therefore, the momentum built up. It went up to $11 and has since corrected substantially. After that event, the results have been declared and there are positives from the performance which have not been factored by the price. The most encouraging aspect is that the CEO expects the company to turn net positive within this year. Now, with an expected sales of $100 million, even a small percentage of net profit will change the long term sentiment to highly bullish. Last year, out of $78 million sales, $27 million came from overseas markets. As per the management, international markets will be a major contributor to growth of the company. It has signed an endorsement with an Australian rugby player recently to increase sales in that country. In 2012, the gross margins were 21.4% compared with 13.8% in 2011, and net loss decreased by 19% from $23.3 million to $18.9 million. Meanwhile, the stock is trading above its short term averages, and there are chances that it may start another leg of uptrend. However, this leg will require even more volumes as $11 will be a strong resistance. Next major trigger could be the listing on the stock exchange in the a few months. Of course, investors will be watching the quarterly performance of the company to see the progress on the net margins front. Even one quarter with net positive outcome will increase the interest of big investors. Funds are not an issue, and the company can continue operations without debt or additional equity dilution immediately. In fact, the company can resort to debt at better terms if it is able to show profit on books.
Now that Dr. Frost and Barry H have invested big money in this co. they will not have a problem with funding. Those 2 men have very deep pockets and have no problem putting in more cash if it's needed. Dr. Frost is the main reason they were able to pay off their debt. MSLP will be ruducing their costs, they're going to renegotiate the costs with their suppliers or switch to new suppliers altogether. They're ordering in extremely large quatities now and should be getting a discount on what they buy, Their profit margin should be higher and it will be higher. Once they start showing a profit, which should be soon, the PPS will go up, a lot.