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Muscle Flex Inc.: Grass Roots Research and Distribution, Inc. Analyst Report on Muscle Flex Inc. Projects the Potential for Exp


Published on 2009-07-13 02:41:49, Last Modified on 2009-07-13 02:41:57 - Market Wire
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LOS ANGELES, CA--(Marketwire - July 13, 2009) - [ Muscle Flex Inc ]. (PINKSHEETS: [ MFLI ]) announced today that the Grass Roots Research and Distribution, Inc. [ analyst report ] on Muscle Flex Inc. projects the potential for explosive revenue growth with the release of their direct response [ "As Seen on TV" ] Product Line. The positive 31-page research report written by one of the nation's leading micro-cap research firms, Grass Roots Research and Distribution, Inc., founded and led by D. Paul Cohen, initiates coverage on Muscle Flex Inc. with a strong buy and a short term price target of $0.22. The report is available for download at [ http://www.grassrootsrd.com/mfli-report.pdf ] or by visiting [ www.grassrootsrd.com ].

The [ Paul Cohen Muscle Flex Inc. analyst report ] discusses how products marketed through the direct response "As Seen on TV" methodology have the ability to generate exceptionally large revenue growth through efficient order, sales and cash-flow capture as well as TV's heightened ability to create a household brand name as evidenced by successful "As Seen on TV" products such as the Snuggie and Spongetech. Muscle Flex Inc. has announced it has three consumer products priced between $9.95-$14.95 that it is preparing for distribution through direct response "As Seen on TV" campaigns.

Muscle Flex Inc. is expected to provide details of its first product release this week that is to be marketed via its proprietary "As Seen on TV" direct response methodology. The Muscle Flex Inc. direct response program allows for the immediate sale of a particular product via television, and over time, the creation of the defacto brand in its particular product space. Muscle Flex immediately rolls profits back into inventory and additional advertising in the product program to provide for an accelerated growth potential for the product. As the value of the brand grows, traditional retail opportunities are then considered as the next phase of the product's revenue cycle.

The Grass Roots Research and Distribution Analyst Report States:

Muscle Flex, Inc. is a specialty marketing firm focused on bringing new consumer health and fitness related products to market. The Company is developing infomercials and advertorials to directly market its innovative products to consumers. Muscle Flex is operating a platform business model where it outsources manufacturing and call center operations, and partners with media producers to create the direct marketing infomercial. This business model enables the Company to keep expenses low while launching new products. The inherent low fixed costs in the business model reduce downside financial risk while enhancing profitability.

The first three products scheduled to launch in the second half of 2009 are inexpensively priced personal health and safety products. The Company is focusing on lower priced products initially due to the weak economic environment. In early 2010, the Company plans to launch the Muscle Flex™ product, a revolutionary in-home fitness unit that combines cardio, strength training and flexibility into one product. We expect the Company to introduce additional products in 2011 and beyond.

The Price Target Valuation States:

We expect revenues to ramp up significantly in 2010 and 2011. Our forecasts assume the Company raises $700,000 to launch the initial infomercials in 2009. We expect revenues of $500,000 in 2009 to increase to $8.7 million in 2010. Our short term price target is $0.22. Our intermediate and long term price targets are $0.58 and $1.50, respectively. We believe Muscle Flex is a compelling investment opportunity.

About Muscle Flex Inc. ([ www.MuscleFlexInc.com ])

Muscle Flex Inc. brings new products to market using direct response TV infomercials specializing in the health, fitness, wellness and hygiene sectors. As well, Muscle Flex Inc. develops and creates general television content for network and cable television distribution. Muscle Flex's corporate strategy is to develop new and innovative products for sale and distribution via its proprietary direct response marketing system and the creation of television shows and content.

This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Muscle Flex to be materially different from the statements made herein.

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