These are my observations and opinions. Please preform your own DD before choosing to purchase or sell any security.
What can save MSLP?
Their only hope at this time.... Wal-Mart.
Their trial partnership with this retailer is basically Wal-Mart allowing them to stick their toe in the water before allowing them to take a dive. Wal-Mart is carrying their product "MMA Elite" in the Las Vegas area markets. Their brand recognition that they have in that area thanks to Zuffa Incs "UFC" which operates primarily in Las Vegas, should give them positive results in this trial.
Marketing and Brand Recognition is the only good thing this company has done right. I know that 20 million spent on advertising seems insane when you dont even have that much in revenues but in the early stages of marketing a new product and building a brand, it is normal to overspend. McDonalds is one of the most recognized brands in the world and they still throw piles of cash in advertising and brand recognition.
MSLP already has a small but strong core sales position that "if" this company did not spend money advertising, they would already be turning a small profit(mind you I am not saying they should do this). Their revenue growth is just now starting to take off due to their efforts and once their product is sitting on the shelves of the majority of Wal-Marts 4300 US stores, and their +1000 stores in countries that the UFC is also broadcasted in and sees their advertising and endorsements.
That is what they are doing right....
Here is what they are doing wrong....
1) They need to make another product geared for other sports, even if it is a similar or the same formula packaged differently. Calling a product something tied to a specific sport, limits its visibility. This product could be geared toward Football players, body builders, and other athletes as well.
2) They should be pumping out news as often as possible about new deals, promotions, endorsements, etc. This type of exposure will bring some immediate attention to their stock and their products at a very minimal expense and effort to the company. They need to capitalize on their investments into advertising and endorsements.
3) This pps makes you want to vomit. The level of share dilution taking place now is borderline criminal. It needs to stop or at least slow down. The share dilution to pay the bills has pushed this stock so low that even though they have a decent product and have built a good sales pipeline, that no PE firms or institutions would touch this with a stick. Retail investors cant prop up a company, which is why we are where we are.
In my opinion, there is a lot of upside potential here long term of this Wal-Mart deal pans out, and I am going to bet it does. I am long this stock.
This pps makes you want to vomit. The level of share dilution taking place now is borderline criminal. It needs to stop or at least slow down. The share dilution to pay the bills has pushed this stock so low that even though they have a decent product and have built a good sales pipeline, that no PE firms or institutions would touch this with a stick. Retail investors cant prop up a company, which is why we are where we are.
yep, its sketchy.. I am on the fence
Don't necessarily agree with 100.0% of your post points, but that was very thoughtful, brother. I wish more posts like yours were rational opinions of fundamentals and not the usual lemming stuff (criticizing no one in particular).