If you are a micro cap investor like me, you always enjoy a good story. Most micro cap or penny stock traders/investors remember the whole SpongeTech (now defunct) debacle of 2010. The story was pretty simple. SpongeTech was a company with 2 billion+ shares outstanding selling a product all over TV and advertising the product at every major sporting event on planet earth. This equation led to SpongeTech's stock rising from sub penny to over 20c per share ($400m market cap at its height). The SEC charged the company in 2010 with running a Pump & Dump scheme, and the stock fell to zero along with the company.
MusclePharm (OTCQB:MSLP) first got introduced to me a couple weeks ago (I do not own shares) by some legit investors I know as a turnaround story with the hopes that the company will look more like a "big boy-girl" company over the next couple months. The company currently has 1.6 billion shares out if you include all the convertible securities, and I would expect the company to do a large reverse split at some point.
Full Article: microcapclub.com/2012/04/is-musclepharm-.../