And if it goes to zero? Risk/reward seems to be slanted toward zero. I am in this at .03 but would not continue to add w/o some reason to believe it will go to .06.
Our next question is a follow-up from the line of Philip Anderson with Pinnacle.
Philip Anderson - Pinnacle
Your answer to my earlier question regarding advertising and focus on growing topline, kind of sparked my little grey cells from the early morning lethargy. I recall that some doing work on the industry before we invested, I've come across four companies that had been acquired in the three years or so and they have a few things in common, there is optimum nutrition, PES nutrition, shift nutrition and max nutrition.
Now, in addition to having nutrition in the name of all four companies, they all required for 3.5 times enterprise value to revenue. And based upon the current enterprise value of MusclePharm, looking at Sidoti's estimate of $158 million for next year, MusclePharm is trading for about 0.5 times or at one-seventh of the [ph] ticket valuations of those companies and their revenues averaged to $165 million, at the time that they required or approximately what MusclePharm is expected to do next year according to Sidoti.
Now, we go to the setup, the company appears to be massively undervalued and now that the SEC issue is almost entirely behind the company, which presumably clears the way for an uplift in not too distant future, what is the company's management intentions to create broader awareness on Wall Street of the quality of this business here and the valuations going forward?
Richard Estalella - Chief Operating Officer
Well, I think it starts us, with our ability to again give you guidance next year on what we're going to do, beyond just topline and then executing to that standard. And you're exactly right, you hit it on the head, we're extremely undervalued. We all know it. It's not indicative of what we're making happen at the marketplace, but what we're putting into this business from a sweat equity standpoint. So our goal is to make sure that in 2014,we have a much clearer picture of where we're heading and hopefully you can all help us to
But I have to say that the indication on the website that the drops will be available in late December, 2013 and yet the latest news on that site is December, 2011. That news indicates that they need a CEO to grow the company which was started by a doc from UAB's eye foundation. I am a patient there, actually worked at UAB and have friends with macular degeneration; yet had not heard of this product or company.
Sounds very promising but I am afraid marketing these drops needs to come from DROP! Byw, I opened and eyes and still missed the misspelled December, 2013 on the website. Guess they need spell check too? Lol
He who is sure of everything, soon loses his money. You might want to update yourself on where things are with mslp. The past does not equal the future success.
This is low risk and high potential for reward.
SEC clearance and Nasdaq listing. It is obvious that it is grossly undervalued but these two things are hurting the credibility and stock price. 51% sales increase (even discounted to clear out merchandise to make room for new product) year over year is amazing! But accounting issues will always kill momentum. And OTC hurts any chance of meaningful investment without a Dow or Nasdaq listing.
about something BIG to come in mid January when they outline their strategies and long range plans. Also one question was based on the fact that the company is extremely undervalued, especially now that the SEC thing is behind them. 10 million warrants exist from biozone with strike price of 40 (cents).