Looks like Muscle Pharm Corporation (OTC:MSLP) failed to get the gain these days. Last Friday, the stock got the up move, however, it didn’t last long and this week MSLP fell down again. Yesterday, it lost almost 23% on the market on a traded volume of over 6 million shares.
The only news released by Muscle Pharm over the past days was its preliminary financial results for the first quarter ended March 31, 2011, which appears to be the main reason for the current price change.
Despite the fact that Mr.Brad Pyatt, CEO of MSLP, stated to be pleased with the revenue growth, the company’s report doesn’t look much promising.According to it, Muscle Pharm has incurred significant expenses and a net loss which haven’t been reported yet.
It seems that the lack of detailed information, along with the company’s statement that it is continually making the necessary changes to become profitable in the future, have raised serious doubts in investors who are waiting for the actual results. Meanwhile, a note for a special meeting of the company’s shareholders was scheduled for May this year. The note consisted of proposals for increasing the shares of MSLP common stock, accompanied by potential dilution for existing shareholders.
As already reported on hotstocked.com, last week MSLP made hard efforts to get the up move by promotions and good news, however, the efforts turned to be unsuccessful. Now the company tries to provoke traders with optimistic financial results, though they are still waiting for the full report.
In the meantime, the annual results of Muscle Pharm look discouraging. By December 31, 2010 the liabilities of Muscle Pharm were 50% higher than its total assets and the accumulated stockholders’ deficit was higher than $1 million. Meanwhile, the total accumulated deficit of MSLP reached $21 million, not considering the other huge losses.
Based on the above-mentioned results, the only question about MSLP is, how will the company cover its liabilities?
