Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
:( I had thought you were going. Is anyone here going? Zac
yeah, intersting take...I hadn't thought of that. That would make sense though.
Some changes to the 10Q just came out relating to the fact that it said some results from 2003 had not been audited by the accountants. uWink is clarifying that they were audited by the old accounting firm which has since been dismissed:
"...As such, we are amending this report solely for the purpose of removing the statement that "The independent accountants have not reviewed the unaudited consolidated financial statements for the three months ended March 31, 2003."
None of this seems relevant to anything as far as I'm concerned. Good that they're up on disclosing stuff though. Zac
hehe...BEAUTIFUL POST
There is ABSOLUTELY NO EXCUSE for not talking about the audited financials in the PR and explaining why they haven't been released. The former CEO who he speaks so kindly about promised them. Steve Sulja is a jerk.
I can't find the PR's from the summer on the SLJB website...where are they?
ANYONE CAN ATTEND A CONFERENCE!!!
This is classic stock promotion/fraud crap. Trying to get people all excited by saying they're attending a conference. ANYONE CAN DO THAT.
Are any of you seriously still bullish on this stock? Doesn't this have all the hallmarks of a classic fraudulent stock promotion? Have any of you read Manuel Asensio's book Sold Short?
What is with the silly, stupid, rambling press releases that say nothing? Gawd, this is a stock promotion if ever there was one.
who cares?
I don't know if anyone has seen these, but a nice OLD interviews with Nolan Bushnell:
why would putting a sell in higher than the current ask raise the ask?
There was a very brief and unimportant mention of uWink on a blog yesterday:
"wednesday was our fourteen month anniversary. we went to this place called "UWink" and it was crazy. there's computers on every table, and you order your food yourself, and drinks, and everything. they have games on that shit too, it was so siq. i loved every second of it."
It's a woman, who appears to be in the demographic they're targeting... (link here, but no more mention of uWink: http://crucialcrown.livejournal.com/39892.html)
I just thought I'd throw that out there.
I would be SHOCKED if it took them that long to start building. They seem to be saying it will be faster. But who knows. But I've seen restaurants expand much more quickly than 2 years. But we'll see. Zac
so that's pretty darn confident... :) Zac
Yeah, I don't see it as being particularly important either...he's an investmentment banker...
Rawnoc, how confident are you that they'll be able to sell franchises? Just curious. Zac
New form 4 today...a director sold all his shares. I wouldn't read too much into at all. Any thoughts on this? Zac
I'm just saying that using the average strike price for the warrants and then multiplying that by the number outstanding is not the right way to calculate it when so many are out of the money. The ones that are most likely to be exercised are the ones that are very cheap, i.e. the 35 cents ones. If the stock price continues to climb, it's different....anyway, I agree that cash is probably not a big concern. Zac
Rawnoc:
That 8 million will only be coming if the stock goes well over $3.10. The only ones that I think we can count on to be exercised are the 35 cent ones...should raise a couple million dollars, but that's it. The rest of the infusion would need a rising share-price.
Zac
Raw,
Are you concerned about the balance sheet? If the franchises DON'T get sold quickly, will uWink be able to raise additional cash? Thanks, Zac
I like the "bashers." They create FAR more interesting discussions than a board of 100% long.
Rawnoc,
Couple Questions (Pure curiosity):
Have you sold any shares yet?
What are your short-term/long-term price targets for the stock?
Just curious... Thanks, Zac
Buyvaluenow:
I received your private post and can't reply to it because i am not a premium member. I would love to continue communicating with you. PLEASE Email me at TeenMoney@gmail.com THANKS, Zac
Pretty impressive report Raw...thanks for that...hard not to be bullish after that.
Right,
And this guy's whole argument seems to be that the company is fine if they can sell the franchises but if not, they're in big trouble because they don't have any cash.
First problem: WHY WOULD YOU TRY TO GO SHORT NOW? Are you confident that they won't be able to sell franchises?
Second Problem: If they can't sell franchises they're in trouble anyway. I think everyone here would concede that.
And I think the point is that the balance sheet is clean enough that even if they do need to raise additional cash, it won't be a problem.
yep. :) nice post.
<<
Please no posts calling me an idiot. I didn't say anything derogatory about any of you. I just stated my thesis for why I think this company isn't going to work out in its CURRENT form (if it goes bankrupt and someone who is well-capitalized swoops up the intellectual property, that's a different story -- if UWNK had lots of money in the bank, I would never dream of shorting it). Anyway, I tried to put my money where my mouth is and failed.>>
I just think shorting a stock because they don't have any cash even though they have no long-term debt is really just plain stupid. It would be one thing if they were saddled with debt. But what makes you think they couldn't go borrow money? They are not teetering on the edge of bankruptcy. They don't have a lot of assets or liabilities. It's basically a clean slate. Zac
I don't have a lot of time so I'll just give a quick response to select points:
First of all, I wouldn't assume that the weakness of the balance sheet at the moment is indicative of an inability to raise money. I think they have enough to do what they need to do right now, and are waiting to raise more until they're in a better position to do it. i.e. not doing a secondary until the stock price is higher. Not having a lot of cash on hand imposes a degree of discipline on management. That's the whole idea behind the LBO-mania of the 80's. By harnessing mgmt. with an extremely dicey balance sheet, they were forced to be thrifty with the shareholder's capital. By the way, because they have NO LONG-TERM DEBT, I seriously doubt that uWink would have any trouble raising some cash if need be. The idea is to sell franchises and raise cash that way. They're trying to avoid dilution/high-interest debt.
As for your comments about the restaurant itself, I haven't been there so I wouldn't know. The reports that I've seen indicate that it's been very busy (videos, review in an LA newspaper, etc.).
Bottom line: I think that you'd have to be stupid to short something with this much potential upside with a market cap this low. Plus, this has all the makings of a story stock. With a market cap under 50mm, I think you would agree that this could hyped up considerably higher, even if the underlying fundamentals don't warrant it. I prefer Manual Asensio's modus operandi: short frauds. But that's just me.
Zac
Did you short safescript? MAJOR props to you if you did.
Yeah...if it goes to $2,000, what island would you buy? I'm curious because I'd buy one too, but I wouldn't want us to be bidding on the same one. ;)
hehe...what i find funny is he says that if everything goes perfectly, it could go to 50 DOLLARS!!! But then he says he'll short it if it goes to $2.50 on no news...that's funny stuff...Rawnoc, I'm incredibly intrigued by your thing with that scam and Peter Lynch. If you want to email me at TeenMoney@gmail.com, and tell me about that, I'm dreadfully curious...also, I'd love to know more about you...you seem like a smart investor...i'd like to hear your background...hope that didn't come across as creepy.
It's a lot...but the best one was that we needed over 1 BILLION dollars in earnings to get to a 5 dollar share price with a multiple of 40..
Lol...but it's better to leave the posts up so people can see what an idiot he is, don't you think? Deleting them makes you guys look sketchy.
sorry...another clarification: UWNK will very likely be generating positive cash flow from operating activities, but large negative investment cash flows as they expand, for a net negative cash flow (FCF)...
Point is, uWink will not be cashflow positive for awhile because they're gonna be spending their earnings on expansion. So if you were looking for uWink to be paying a healthy dividend within the next couple years, you're outta luck. ;) But I don't think that's what we're looking for...CAPITAL EXPENDITURES DO NOT SUBTRACT FROM EARNINGS. BWLD's cash flow is negative by a lot because they spend over 20mm a year on cap ex. They have positive net income because net income doesn't include capital expenditures. Your whole argument is WRONG. It makes NO sense because it is based on a complete lack of understanding of accounting. Zac
<<OK, now I feel compelled to correct you endless pumpers. Stop asking me damn questions and stop displaying your utter lack of knowledge about how national restaurant chains work and your total lack of ability to understand balance sheets and cash flow statements.
BWLD could be WAY more profitable than 20 something grand a year per restaurant. However, for restaurants to EXPAND they need to use FCF to do it. BWLD is expanding rapidly, just like UWNK wants to. Do any of you even know how to read a cash flow statement? BWLD spent 2.1 million LAST QUARTER ALONE in cap ex to support growth.
Are you serious Rawnoc? Please tell me you're not naive enough to think that. UWNKs franchise fees aren't going to flow to earnings. They will flow to PAYING the bills, legal fees, funding operations, and growing. They will go to funding options. They will be REVENUE, not earnings for the most part. They want to grow one company resturant for every franchise. The last restaurant cost them over a million to build. Even if these new company ones cost 600K, they will go through those franchise fees like they're yesterday's news.
Do you really think getting to 4.5 million in profit a year will be easy? Christ, that's where you make yourself sound silly.
Chuck E Cheese has 522 restaurants, 477 of which are company-owned (hence generating WAY more than franchises). They're not growing so they don't have huge capex, yet they only made a bit over 7 million last year.>>
Good god...CEC made a little over 70 MILLION LAST YEAR. You are off by a factor of 10. GOD...I could let a few mistakes go...but you've made SOOOOOOOOO many errors that I have to conclude you have no idea how to read an income statement.
Furthermore: Capital expenditures don't subtract from earnings. Expenses do that. If an expenditure is CAPITALIZED, it is recorded as an asset and then charged off over the life of the asset. Otherwise, a company like Ford would have to report massive losses anytime they built a new factory. The capital expenditures show up on the cash flow, but are usually not expensed. They're recorded as assets. So your whole thesis is just total bolgona. PLEASE PLEASE PLEASE write back and explain yourself.
They came public through a reverse-merger with a shell
O M G...many of the expenses associated with expanding would be capitalized rather than expensed. It isn't like you report bad earnings because you're expanding. The huge advertising campaign would be expensed, but most of the expenses associated with expansion would be capitalized, recorded as assets, and then depreciated over the life of the asset. Zac
Don't jump all over him for the math error...it CERTAINLY wasn't lying...it was a MISTAKE...the fact that he was off by a factor of 40 and it didn't look wrong enough to prevent him from posting it (or changing his thesis) is sort of interesting...but anyway, we all make mistakes. Zac