uWink Inc. (UWKI)

[Jews4Kapler]

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