Muscle Pharm Corporation (OTC:MSLP) stock broke out after it was featured on several stock newsletters following the news on board of directors changes and advertising plans.
Bluepint Groundswell Inc. paid $45 thousand for a one day of MSLP stock advertising through stockegg.com and hototc.com. This was one of the main event behind the current increase in trading activity. The promotion came shortly after some corporate news were announced.
Muscle Pharm said they will be rolling out advertising, using a well know American BMX rider T.J. Lavin, who will be wearing Muscle Pharm made apparel during the October thru December episodes of MTV’s show The Challenge, on which he appears as a host.
The manufacturer of nutritional supplements also announced the company accepted Ron Sekura, B.S., M.S., PhD., to its board of directors, which was announced last Thursday. Dr. Sekura is also a president of VivoNex LLC and Biotechnology Assessment Services, Inc.[BANNER]
However, despite the positive recent news, fundamentally the company doesn’t look similar to a rapidly expanding nutritional supplements business, which it is advertised to be:
- Their balance sheet discloses a seriously leveraged position and a lack of liquid capital;
- A quarter over quarter decline in top line is further worsened by a low gross profit margin;
- Advertising and promotion expenses are burning money faster than the company can raise through equity/debt instruments.
Stock price continued to climb for the past two days under increasing trading volume and added over 50% during the climb. Some profit taking occurred Monday morning, but no serious decline has ignited, which suggests the price could hold these gains for a while.
