uWink Inc. (UWKI)

[TipJensen1]

Come on now, granted, my hastily calculated number was way wrong, but the simple fact remains that assuming a 40 multiple, current dilution, and stores that are 50% more profitable each than a comparable BWLD, we still need 75 stores up and running to justify a 5 dollar share price. If the full dilution you indicated comes to fruition, we need more like 150 stores up, running, and producing about 300K a year in net profit (after corporate overhead) just to get to 5.

That's a lot of outlets given there's only one in existence now.

Now, I know full well that this stock could pop to five on the announcement of franchises but eventually everything will come back to the fundamentals. How high of a multiple do people really think a cash-intensive business like a restaurant can garner? 50? 100? I mean, Google only trades at a 64.

Even if we give UWNK a 64 multiple like Google, they're still going to need nearly 100 profitable stores at RAWNOC's projected dilution to get to a share price of five dollars (assuming this stock starts to trade on actual earnings as opposed to potential). And that's assuming stores that are 50% more profitable than BWLD, one of the most profitable restaurants in the biz right now because Wings are so cheap at the moment and they make a disproportionate amount of money on booze.

So, that's my thesis and it's not based on the error at all. I made a stupid, late night mistake and I apologized for it. The fact that I did it is embarrassing and if anyone wants to think that that mistake makes me an idiot or that I know nothing about reading quarterly reports, valuing stocks, or comparing companies to their peers, please feel free to ignore everything I say and belittle me. Or keep harping on it as the reason to sling mud at my theories. But I really would like to see someone provide any sort of FUNDAMENTAL analysis that would actually support a stock price of five within the next year.

To give credit where credit is due, both Mohit and Puzzlecraft have made a few strong posts with some numbers in it recently. Kapler and Rawnoc pointed out my error which was good too.