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Boris Marjanovic

 
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  • MusclePharm: Substantially Undervalued And Strong Acquisition Target [View article]
    People forget sometimes that conference calls contain information not disclosed in the traditional SEC filings. That's why it's very important to go through all conference calls when analyzing a business.
    May 13 04:03 PM | 2 Likes Like |Link to Comment
  • MusclePharm: Substantially Undervalued And Strong Acquisition Target [View article]
    They mentioned that they make $800-850 per Costco store per week in the last two conference calls. This is not insider knowledge, but rather public information. I encourage you to go through the conference calls for yourself.

    And about the competition... MusclePharm's no.1 competitor is Optimum Nutrition ("ON"), which is owned by Glanbia PLC. ON is larger than MusclePharm is, but this is because the company has been around a lot longer. MusclePharm is growing faster and has better marketing, although ON's marketing is also excellent. Within a few years, there will be no supplement company in the world that will be able to compete with MusclePharm. The brand has developed a cult-like following, which none of the other brands have.
    May 13 11:59 AM | 1 Like Like |Link to Comment
  • The Economic Castle Rating: Superior Than The Moat [View article]
    I have worked with many Wall Street analysts who used DCF to value the companies they cover, and to be honest it is a complete joke. Almost every time they would come up with the fair value in their heads (what they think the stock should trade at), and then they would adjust their free cash flow forecast and discount rate to match that "fair value" they came up with. The truth is that DCF is a poor valuation tool and can be easily manipulated by just making tiny changes to the inputs.
    May 12 11:02 PM | 1 Like Like |Link to Comment
  • The Economic Castle Rating: Superior Than The Moat [View article]
    You mentioned in the article that you use a 3-stage DCF model to value companies… I assume you do a 15-20 year forecast, maybe even longer than that. The problem with DCF is that it only works in theory. In theory, if we knew a company’s precise future cash flows, we would know its precise value (assuming we all used the same discount rate). But since humans are terrible at forecasting, DCF is something we should rarely use, unless it’s a bond or annuity type of investment where we know the cash flow stream. Simple multiple-based valuation methodologies are far superior to any DCF-based valuation method. This is also why your Economic Castle Rating, while a very interesting idea, will not work very well in the real world.
    May 12 10:57 PM | Likes Like |Link to Comment
  • MusclePharm: Substantially Undervalued And Strong Acquisition Target [View article]
    The one product they have at Costco makes them $800-850 per store per week. If they could get several more products in there it would be a huge growth driver, in my opinion. The MusclePharm Protein Water will be the next Costco product when it is release later this year.
    May 12 09:59 AM | Likes Like |Link to Comment
  • MusclePharm: Substantially Undervalued And Strong Acquisition Target [View article]
    People don't understand that MusclePharm has a massive marketing advantage over its competitors. The UFC is one of the fastest growing sports in the world. MusclePharm is the official sponsor of the UFC, which is seen by millions of people worldwide. And all of these people are exposed to the MusclePharm brand every time they watch a fight. This is an enormous advantage that no other supplement company has. MusclePharm now also has Arnold Schwarzenegger on its team. Arnold changed the fitness industry and is an inspiration to millions. In fact, there is no other fitness icon that can even come close to him. This is the first time ever Arnold has put his name on a supplement brand, and he chose MusclePharm. Now every time he goes out and makes an appearance somewhere he endorses the brand. This is a massive marketing advantage that is very hard to compete with. In summary, when it comes to marketing its brand, MusclePharm is the king! This is the main reason why the company has developed a cult-like following in recent years. Something like this has never before happened in this industry. I believe MusclePharm will dominate this industry for a very long time. The best time to buy this stock is now before it becomes too expensive.
    May 10 10:13 AM | 1 Like Like |Link to Comment
  • MusclePharm: Substantially Undervalued And Strong Acquisition Target [View article]
    D Reed, you are 100% about everything. And about the customer concentration risk... while three customers make up for roughly 45% of sales, this is a bit misleading. For example, bodybuilding.com (the largest supplement website in the world) is MusclePharm's largest customer (~14% of sales). However, bodybuilding.com is simply a distribution channel through which customers buy MusclePharm supplements. It would be more accurate to say that bodybuilding.com's customers account for 14% of MusclePharm's sales. When you really analyze it, you realize there is in fact very little customer concentration risk.
    May 10 09:56 AM | 1 Like Like |Link to Comment
  • MusclePharm: Substantially Undervalued And Strong Acquisition Target [View article]
    Will be around 13.5 million shares by the end of 2014, and will stay around there going forward, according to the CEO. Dilution was necessary in the past for the company to keep growing. However, now that the company is profitable, dilution will no longer be as much of a problem.
    May 9 03:54 PM | Likes Like |Link to Comment
  • MusclePharm: Substantially Undervalued And Strong Acquisition Target [View article]
    The DROPZ energy drink will be a healthier alternative to other energy drinks on the market today. I did not make that up. In fact, management stated in their conference calls that it will have less caffeine and sugar, so people will not feel a crash an hour after taking the drink.

    For those who don't understand nutrition, I will try to explain things as simply as I can. The reason people feel that crash soon after taking the drink is because the sugars in those drinks digest fast. The more sugar you take in and the faster it digests, the more it will spike your insulin levels. When your insulin levels are spiked it causes fat storage. This is obviously not healthy. The DROPZ energy drink will prevent this massive insulin spike, which will lower the likelihood of fat gain. This makes it a healthier alternative to other drinks like RedBull and Monster.

    Most of the people posting negative comments on this company simply don't understand this company or the industry it operates in. Next time before you post ignorant comments, please do some research. Thank you.
    May 9 10:20 AM | 1 Like Like |Link to Comment
  • MusclePharm: Substantially Undervalued And Strong Acquisition Target [View article]
    Watch for more insider buying over the next several months. This stock is likely going to $20 or more before the year ends.
    May 8 10:17 PM | Likes Like |Link to Comment
  • MusclePharm: Substantially Undervalued And Strong Acquisition Target [View article]
    It's no hype. The company has been growing like this for years. You really do have to be familiar with this industry to truly understand this business and its potential.
    May 8 05:56 PM | Likes Like |Link to Comment
  • MusclePharm: Substantially Undervalued And Strong Acquisition Target [View article]
    Many of these social networking stocks are trading at 100-200x earnings!!!! MusclePharm is trading for less than 20x estimated 2014 earnings and growing more than 100% per year. It's one of the cheapest stock you can buy right now.

    The only reason MusclePharm is so undervalued right now is because it's an OTC stock, which prevents large institutional investors from buying the stock. Once the uplisting happens later this year this will change. The demand for the stock will increase and drive the price higher.
    May 8 04:01 PM | Likes Like |Link to Comment
  • MusclePharm: Substantially Undervalued And Strong Acquisition Target [View article]
    People want to buy a hyper-growth company for 3x earnings. It's not realistic at all. I would gladly pay up to 50x earnings for a company like MusclePharm.
    May 8 03:53 PM | Likes Like |Link to Comment
  • MusclePharm: Substantially Undervalued And Strong Acquisition Target [View article]
    The company is growing extremely fast and there is outside evidence to confirm this. Very few assumptions need to be made to realize this stock is a bargain at the current price.
    May 8 03:22 PM | Likes Like |Link to Comment
  • MusclePharm: Substantially Undervalued And Strong Acquisition Target [View article]
    FitMiss is one of the only supplement lines in the industry specifically dedicated towards the other 50% of the population. FitMiss is extremely popular and selling very well. In fact, all three MusclePharm brands have developed a cult-like following, including the FitMiss brad.
    May 8 11:48 AM | Likes Like |Link to Comment
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