We believe now is the time to build a position in MusclePharm (MSLP.OB) stock. Known in the industry as “The Athletes Company™”, MusclePharm is a leading maker of high-quality branded sports nutritional products for athletes, body builders and health minded individuals from all walks of life.
With the creation of one of the strongest brands in an otherwise relatively crowded space, MSLP has been able to land high profile marketing deals and important shelf space in leading health-related retails. The Company also has global distribution capabilities that reach over 120 countries through leading specialty retailers including GNC, The Vitamin Shoppe, BodyBuilding.com and other international distributors.
According to BBC research, the global market for sports nutrition products increased from approximately $28 billion in 2007 to more than $31 billion in 2008 and is forecast to reach $91.8 billion by 2013, a compound annual growth rate (CAGR) of 24%. Through its creation of one the strongest brands in this sector, MSLP will likely be able to grow well in excess of this already impressive industry growth rate.
Leading health and nutrition-related retailer GNC has agreed to place MusclePharm’s products in approximately 1,200 GNC stores with the stated goal of increasing the number of stores to 2,500 by the end of the year, assuming sales levels meet the retailer’s expectations. Additionally, we expect MusclePharm to start shipping its products to one of the leading drug store chains in the U.S. in the near future.
MusclePharm is lead by a very experienced management team that is extremely familiar with the marketplace and possesses direct, personal industry experience. Having used and evaluated nutritional supplements themselves for many years, this management team has the knowledge and expertise that has proven invaluable to the Company on how to best develop a product line optimally suited to its customers.
We have always believed that the best time to buy an emerging company stock is just before, or during, the beginning of a revenue ramp. We believe that MusclePharm is right before its strong ramp, due to its distribution at leading retailer and its athlete endorsements and marketing campaigns. We expect the stock to trade much higher over the next several weeks and months. Our model has revenue of $9M and EPS of ($0.14) for CY 2010, $25M in revenue and EPS 0f $0.15 for CY 2011 and $50M in revenue and EPS $0.25 for CY 2012. Joe Noel –
To see our full report with financial model and assumptions, please click on attached link: MSLP initiation report
See disclosures: EGR disclosures
{ 5 comments… read them below or add one }
Joe – As an investor and amateur bodybuilder, I am interested in this company. Is it possible to obtain some samples of the products?
What is your expectation of price for this stock by September?
Hi Mike – I have asked for some samples also but have not been able to get any. I did notice two days ago that the products are available at GNC. supplies have been tight with the products on back order as they have sold out. Kinda a good thing I guess. Looks like product is moving again into GNC and http://www.bodybuilder.com. I will try to get some sample of the new protein gel, which I think is a strong product. Check back with me in a few weeks. Sorry can’y get something for you sooner. Joe
What might MSLP’s share price reach should they execute your pro-forma estimates?
Billy – It depends on so many factors that I cannot even guess. Sorry. Joe