uWink Inc. (UWKI)

[buyvaluenow]

So, I actually ate here last week. Food was decent, not great, with the exception of a quesadilla app which was awesome.

Place was pretty much empty, especially compared to other restaurants around the mall. Also, we saw two tables of 40 somethings get up and leave because they got frustrated with the ordering system.

All in all, there were many many frustrating things about this restaurant. The big damn computers in the middle of the table made it difficult to talk to each other. The ordering process took far too many steps and involved these annoying swipe cards. The games were simplistic and not particularly engaging.

I gotta say that neither my friend nor I were impressed. I would be stunned if this place makes it. Given it has a 40 million dollar market cap and only one restuarant (which is losing money hand over fist), I think you are crazy to invest here. They are close to running out of cash and unless some private money steps up big, they aren't going to make it. Problem is, I'm not sure who's gonna step up big given how unpopular/un-customer friendly the restaurant is at the moment. Also, given both of Nolan B's business went Chapter 11 after he dumped them, the smart money is necessarily gonna be lining up behind this guy.

To understand how incredibly overpriced this stock is, take a look at STRZ. It's profitable, with over 10 restaurants. Including an annual special dividend, it pays a 10% yield. Yet its market cap is 27 million, far less than UWNKs.

This stock is a trap. There are no fundamental reasons for it to be this high other than uninformed investors jumping on a bandwagon. Mark my words, it will go under. If you have money invested in it that you can't afford to lose, get out.

If you really believe in the future of this thing, stay on the sidelines until they actually get any franchise agreements or outside money. Patience is a virtue in investing. Believe me, if this is really going to be the next big thing, (which I promise you, it's not), you're still going to have plenty of time to make a ton of money if you wait a bit. Want proof? Look at this chart for BWLD. It already had more than 100 stores when it went public.

http://finance.yahoo.com/q/bc?s=BWLD&t=5y

Panera, Cheesecake factory, Applebees, all were profitable and established before going public and all have been huge winners.

At the moment, anyone buying this stock is playing Russian Roulette. even worse, every day they're getting diluted because the company pays for most everything in stock. Mark my words, we'll be back at .20 or worse within the next six months.