Free Stock Tips

Hi Everybody,

We hope everyone enjoyed the weekend. Are you ready to make some money?

Our alert for Monday is Muscle Pharm Corp., MSLP, and the stock closed Friday at $0.0358.

MSLP develops nutritional supplements for the $12 Billion dollar fitness, bodybuilding and sports industry.

MSLP’s brand is already available in 5,000 US stores, including nutritional mainstays such as GNC, Vitamin Shoppe, and Vitamin World. as well as over 100 online stores including bodybuilding.com and amazon.com.

MSLP’s products are now even carried by Wal-Mart !!  That is a HUGE stamp of approval especially for a company with a 3.5 cent stock. It tells us that Wal-mart believes there is a huge market for their products and that MSLP as a company has the ability to deliver them.

Last Year the MSLP products won the prestigious Breakout Product of the Year, Packaging of the Year, and New Supplement of the Year by the bodybuilding industry.

In addition MSLP products are also being used by many high profile athletes. There are too many to name here but check out their site, they are all listed. That is big because everyone wants to feel like a superstar so wearing the same clothes or using the same products help do that. It drives sales for sure.

OK, so we know the product is good, people like it and stores are carrying them.

Let’s look at some numbers.

In 2010 MSLP did $4 Million in sales.

In 2011 MSLP did $21 Million in sales!!!.

That is a 452% increase over 2010.

$21 Million in sales takes them well out of the typical penny stock category.

Here are some other clues that show that MSLP is gearing up as it transitions from young start up to successful company.

MSLP announced the hiring of National Securities in February.

MSLP announced last week the hiring of a investor relations firm which means they are really going to be getting the word out.

And this is a BIG BIG one, last week MSLP announced the retirement of ALL the convertible notes held by various financing companies.

That in our opinion is why the stock finally broke out of its channel. Convertible notes are a necessary evil for OTC companies. They provide cash to the company to grow but destroy the stock because they provide an almost endless supply of shares to the market so no matter what demand almost never outstrips demand.

The fact that MSLP has retired all the outstanding notes tells us two things,

1) The supply of new MSLP shares has or will become constant.
2) MSLP is now strong enough financially that it no longer needs to sell its soul to get cash.

Last but not least, let’s look at the chart.

You will see that MSLP was in a long term downtrend. (due to the overwhelming supply of stock from all those notes that are now retired)

MSLP has had heavy resistance in the 2 cent area since October of last year.

MSLP broke above 2 cents Wednesday, had a minor pullback Thursday as traders took short term gains, and went on to close above Wednesdays high on Friday. That is VERY BULLISH.

MSLP should be a great breakout play here.

Get ready to book your profits with MSLP.

As always, do your own research, don’t chase gaps, use limit orders to enter positions, always use stop loss orders to protect your position, and take profits when you are in a position to do so.

Good trading