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Muscle Pharm Corp. Message Board

  • investora2z investora2z Mar 8, 2013 10:51 PM Flag

    Low volumes yesterday

    Yesterday, the volumes were low, around 19K compared with three month average volumes of around 45K. MSLP stock is not able to touch $6.5 and requires volume support to touch and, ultimately, breach that ceiling. It is surely above the 200 DMA and the 50 DMA, and this phase is perhaps a consolidation. There have been a few days of increase in volume recently, but what is required is a sustained uptrend on that metric. The expected listing in the second quarter is also a reason for the stock being stable above the averages. This event makes $5 a very strong support. Growth in sales has already been estimated and guided by the management. For 2013, the expectations are that the sales will touch $100M compared with $78M for 2012. However, the main problem remaining now, after the debts have been cleared, is the negative net margin. MSLP has been trying to rationalize on the cost front, especially the selling and distribution costs. The gross and net margins in the fourth quarter 2012 will give a good indication on the results of the efforts on this front. This will help extrapolate and calculate the earnings growth prospects over the next few years. These estimates can be used to better forecast the expected share price based on fundamentals. So these numbers will be crucial. In any case, institutions will be looking closely at the numbers to understand the potential. The listing will be a major event in the history of the stock and the management has planned for it. The consolidation of shares was basically done for this. Listing has been planned to attract attention of the big guys and make funding for future growth easier. Thus, it is crucial for the management that the fundamentals improve and the stock price remains strong in the run-up to the event.

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