Friday, October 20, 2006 11:03:52 PM
Instead of analyzing every uptick and downtick in the share price, I think investors would do well to focus on the underlying fundamentals of the business. Based on what one #2 rated analyst has said about it, the CEO's track record, and the excellent team that has been brought on-board and a compensation system that rewards them for rewarding shareholders, I think that UWNK is EXTREMELY attractive at its current price. While the store opening is important, I think it would be a mistake to read too much into the success or failure of the location in its first week. This will play out over time, and the restaurant is not really finished yet, nor is it being heavily promoted. They opened early, I believe, to test the concept and get customer reactions, as well as to start to hopefully generate cash. They have been, in my opinion, deliberately low-key about it so far, knowing that this is not the finished product. That will be seen a little later.
My suggestion to shareholders would be to hang in there. It can be tempting to see day to day swings in the price of the stock as being relevant to the company/proving or disproving your investment decision. It is neither. They are random swings that have to do with demand for the shares at any given moment. That can be quite finicky in microcaps.
So I would hang in there. If UWNK really is an exciting new concept with great potential to be the next big thing, at a market cap of under 40mm with no long-term debt, it's a bargain. This is true regardless of whether it goes up or down 5 or 20 or 89% on any given day. If you can't deal with that volatility, don't buy OTC BB stocks. It's just that simple. I am so sick of seeing all the whining about people "PRAYING" that it will close "in the green." Pathetic. Good luck to all.
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