The truth is that no one knows whats going on except musclepharm. The bashers and supporters alike are speculating every decision because we are not being communicated to. Here is what I do know as an investor. Their sales are growing at a rapid rate. Their increased expenses are associated with growith (read quarterly report). Something positive for this quarter that MSLP did is they invested in their employees (Introducing a 401K to all of their full time employees). Greedy companies don't reward their people. I'm not an advocate or anti MSLP. I do understand however what expectations I'm looking for when I look at a financials report for a PENNY stock company. Not sure what some people on here are thinking when they post why this or why that. This is a company starting from scrtach and it can take years to develop. It will take a lot of money to market them and build their reputation in a very competitive business. My only real concern is their lack of transparency with shareholders. They can easily attract more investors like us if they communicate what they are doing and why. All major corporations understand the value of gaining shareholder loyalty. They haven't figured that out yet so I guess thats why they aren't major...
- 2 guys own 51% of voting rights of all shareholders so why be transparent? You have zero say-so in the direction (or lack thereof) in the company.
- The stock has already been diluted 4 times in the past year and everyone thought they were done because of the enormous % increase in number of shares. However, all 4 of those increases don't even make up a fraction of the increase that is coming post-split. Do the math. 100,000,000 shares post-split is the equivalent of approving 85 BILLION new shares today. That's more outstanding shares that Apple, Microsoft, GE, IBM, Facebook, BP, Yahoo, Cisco, and Nokia COMBINED.
- People went crazy in Feb when they announced a 2.5X increase from 1B to 2.5B shares. There will be 2,941,177 total shares after the split. The post-split increase will increase it to 100million or 34X.
- Page 8 of the Schedule 14(s) SEC documentation removes any doubt that the company will not be taken-over, will not be purchased "even if those persons or entities offer an above-market premium that is favored by a majority of the independent stockholders", and make it impossible "to remove the Company's current management by diluting the stock ownership or voting rights of persons seeking to cause such removal."
- Also in Schedule 14(c): "We expect to seek to undertake an offering of our Common Stock in the near future to raise $20million." I'm assuming "in the near future" means post-split because $20million of Common Stock today equals 4 billion shares and they currently only have authorization for 2.5 billion. I would love to be at the meeting when one of these #$%$ stood up and said, "Let's see...I think we should try to raise twice as much money offering stock than our entire market cap." It's the equivalent of Bill Gates saying, we need to raise $400Billion in our next stock offering. He'd be in a cell next to Madoff.
These are facts. Nobody's guessing here and nobody's bashing without merit. If you took 2 seconds to stop reading insignificant garbage like quarterly financials and concentrate on the overall direction of the company, you'd sh^t yourself.