By: Tomas Ronolski - AllPennyStocks.com News

Tuesday, March 1, 2016

In a report released last year, Persistence Market Research noted that over the last ten to fifteen years, sales of nutrition and supplement products have seen an unprecedented spike globally. Persistence Market Research, citing the Nutrition Business Journal, noted in its report that the global nutrition and supplements market was worth $104 billion at the end of 2013. The global nutrition and supplements market is expected to grow at a CAGR of between 6% and 7%, according to Persistence Market Research. Growth rates could be even higher in some developing markets such as those in Asia-Pacific.

The bullish outlook for the global nutrition and supplements market augurs well for MusclePharm Corp. (OTCQB:MSLP). Based in Denver, Colorado, MusclePharm is a scientifically-driven, performance lifestyle company that focuses on the development, manufacturing, marketing and distribution of branded nutritional supplements. MSLP’s offerings include a range of powders, capsules, tablets and gels. The company’s portfolio of recognized brands include MusclePharm(R) Sport Series, Black Label and Core Series, Arnold Schwarzenegger Series™ and FitMiss™, which are available in more than 120 countries at over 45,000 retail outlets.

MusclePharm shares have surged in trading today. At last check, the stock was trading 20.47% higher at $2.06 on volume of 22,237, which is nearly double the daily average volume. MSLP shares are rallying after the company announced its preliminary financial results for the fourth quarter ended December 31, 2015.

MSLP said that its net revenue for the December quarter was approximately $41 million, representing an increase of 21% on a sequential basis and 26% on a year-over-year basis. The company’s gross margin for the quarter was approximately 35%, an improvement of 4 percentage points on a sequential basis and 12 percentage points on a year-over-year basis.

Since the start of this year, MSLP has executed a $10 million financing with Prestige Capital to address liquidity concerns. The company has also launched its MusclePharm Combat 100% Whey(TM) in December 2015, an ultra-premium blend containing 100% whey protein developed to support lean muscle maintenance replenishment, fueling muscle recovery and performance.

Commenting on the fourth quarter, Ryan Drexler, Chairman at MusclePharm, said that the company is pleased with the results of its business in the fourth quarter and the positive momentum it has built in revenue, gross margins and supply chain improvements. Drexler said that the company is building strong relationships with its key partners in both the supply chain as well as the Company’s retailers.

Even though shares are surging today, the stock is near its 52 week lows as the Company’s excitement is not being interpreted in the Company’s share price performance of late.

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