uWink Inc. (UWKI)

[Jews4Kapler]

Well I think we can all agree that if our optimism about uwink was all based on one restaurant, it would be overvalued. ;) Calculating the P/E based on the one restaurant is really kind of a meaningless restaurant.

As to your other points: while it was expensive to set up the first uWink restaurant, I wouldn't assume at all that subsequent ones will cost anywhere near that much. This was a prototype: it was the first time they'd built one, and it was designed as a sort of disply of what uWink is. Saying that the franchising won't work because the restaurant was too expensive is a little bit like saying airplanes aren't feasible because it cost the Wright Brothers x amount of dollars to build the first one. That said, yes the initial investment will be higher than a Buffalo Wild Wings or a Subway. But you're also getting something completely unique. CEC was an expensive restaurant to start and franchise to buy (HUGE space requirements), but it has worked out ok. Incidentally, there was tremendous skepticism about it from the get-go, partly because of the size requirements. Nolan has always been a rule-breaker.

I also don't see uWink's position has being as dire as you seem to. I don't think they would have any trouble raising some cash if they need to. As they've said, they plan to have 2 to 3 more company-owned stores within the next six months or so. The stuff in the 10-Q is boilerplate. Any company that hasn't established itself yet puts in a going-concern warning. I wouldn't read too much into it. If the idea is good, they will no problem securing financing. If it isn't, the company is screwed anyway.