You know nothing about margins for non-established companies. This is NOT Kraft Foods. BTW, real consumer goods companies don't have a multitude of athletes who are paid many millions of dollars to be golf bag carriers, etc. Lots and lots of contractual overhead. You try to crush that with a "write-off". Oh yeah, I remember, you said that would be 'easy'. Tell that to the Yankees and what they were reminded of with A-Rod.
Actually, if you can determine that Frost is still involved here, then I would be impressed. I think that he liquidated. OTOH, if Frost increased his holdings, then maybe this has a prayer of solvency. I got out at $7, and was thrilled to get out at a small profit. Someone close to the company, the products and the egos, the management, predicted in early 2014 that this company would continue to grow massively and relatively quickly spin out of control, and then be in dire straits. I trusted him, and his instincts were correct. "Easy" is not an operative word for MSLP any longer. GLTA
Yep, as Paul Simon said, slip sliding away. A new low….and going lower. This company needs a white knight to save it. Wonder if Frost is still involved here. Yahoo does not show him with an interest.
NO sales, and NO cash on hand. i.e. no inflow, only losses. Beggar status. The ultimate in high risk. Each time they stretch out their arm for a cash fix, takes the stock price down further.
I am rolling dice here, but the prospects for their technology being unique/accepted may make sitting at the craps table worthwhile.
Question, if you believe in your own due diligence, what aspects of this story do you believe are HIGH risk? Thanks.
June 24th article on Yahoo Finance. Have you read it? MSLP has many outstanding contracts with sports figures, Capstone, etc. It does not have the funds to pay them. Period. You sir, are leading sheep to the slaughter. Shame on you.
Your post is absurd and makes you look ignorant. Companies re-structure all the time. CONTRACT PENALTIES HAVE NOTHING TO DO WITH RE-STRUCTURING AND HEADCOUNT ADJUSTMENTS. What are the contract penalties for? There is a reason that they are not being specific. Of course you probably have knowledge of what these contract penalties are actually for, i.e. for signed contracts being broken/reneged by MSLP….not workers being laid off. Give me a break with your 'knowledge' eh. If you break a contract, there are FINANCIAL PENALTIES THAT MUST BE PAID. A penalty, that must be paid to the other party…not just a bookkeeping entry. How dense can you be.… are you too inexperienced in the world of business to understand that concept? BUYER BEWARE.
Today's announcement should have happened 6 months ago. The lows PPS will be hit fairly soon. $30 MILLION IN CONTRACT PENALTIES (you can't make this up!!), with only $4M in cash, $8M in backlog (what does this mean in the context of $50M quarters?). Top line is ok (and will definitely NOT GROW, as they weasel out of some deals)but the business is coming apart, after major poor decisions over the past 12 months. Wouldn't be surprised as the company starts to implode that volume comes down as well. The wording of the PR demonstrates an ineptness in communication, content, and overall thought. We are sub-$2 soon. We are a takeout target by year-end. Let's see. Peter Principle in Motion…they are in way over their heads and sinking fast.
'All they have to do is show good results for CardioPET P2'
My understanding is that they need more $ NOW to get this moving. Perhaps you are more knowledgeable than me about their situation. But I think the PPS reflects a profound concern that they are very short on funding. Hope things work out here..I am in a 6 figure position and down 50%.
we'll see. been told i'd have an opportunity to double down lower. i'm thinking i've got more than enough. my understanding is that only a small portion of their cash needs were satisfied recently. they need significantly more to get the train rolling again, and complete studies. any company that is short of cash in this market, is very vulnerable…to say the least. stock price just reflects their reality.
appears that they need more money, and the raise will happen at $.20 or $.25. a lot more pain before before it turns around hopefully in 2016. its a lost cause for 2015. tax loss selling will absolutely cream this further.
would agree. this moves with uplisting AND a commercial deal with a Fortune 500 (Novartis, PG, JNJ, etc.). Hopefully they are announced simultaneously, but i don't know if thats conceivable. If so, we are up 50% that day.
Think logically. This company being 'acquired' is said to "PROJECT" $6M revenues. They made no claims as to 2015 revenues. Why not? I would bet this deal does not come about. If you were a profitable business, why would you sell to OOIL, a company that has no sales volume, losses, no cash, and no historical business experience?
Wow, surprised they couldn't get close to current ask $2.60. PIPE had go out at $2.09. Wonder if there were options or other bene's for these guys to equate to an even lower price...
How many have they sold or leased? What is the market size for Smart Algae Harvesters? Are the farmers lined up to purchase? Why not?
I think they'll run-in-place for the next couple months. Not all of their patent assets have value. They have significant staffing/overhead right now, and will need to sell additional marketable assets off by the end of the next quarter. Yes, some companies do sell off assets periodically. Normally its for realignment purposes and to purchase/re-invest in their businesses, and NOT to keep from totally running out of capital. Burning the office furniture to keep warm is not a good way to stay in business.
This is the start here, and we'll see if Joe can put a business into Drive mode. To me, its not even close to finding its legs.
This is a Glyeco, and an Axion rolled into one. Great ideas, but already deep enough in the financial hole that they need to order a coffin. Correct me if I am mistaken, but is cash approx. $100,000? Is debt at $7,000,000+? Was "revenue" during all of 2014 under $150,000? My pizza place does more volume than that. Have they made any "sales" in 2015? And they are servicing debt how? with $.03 per share offering in June, note conversion at $.015 in July?? Can you imagine how much stock is being doled out to pay their vendors? BTW, how much stock is out there?? How much dilution is taking place each and every month.
I like the story!! The technology is quite interesting, but why is no-one biting? Algae harvesters, separation equipment for waste, and O&G industry…yet no-one is putting up ONE DIME! Oh, and the main issue is dozens of news stories, but not one that lays out how they would make a profit on anything that they claim to be able to do. Example of Serv-Pro cleaning a basement in OKCity does not imply profit-making potential in this type of endeavor. They have been pushing the algae dream for a while as well. No takers there either.
No model. No common sense. This is feel good business, that is on the verge of financial drowning. They need an angel investor by end of 2015, or it is all over. I hope they find their investor…..FAST!
I would love to get these issues addressed by someone knowledgable with the story.
Good luck all. I am out at break-even. Thank you for the Shareholder Letter, for the temporary lift. Will revisit if we drop to mid-20's. My take on the letter was pretty luke-warm. Hate to see a company sell off assets to stay afloat, and make that part of their business strategy.
I'd strongly recommend that you salvage $.133/share before you lose it all. This was bad news 3 years ago and has not changed.