uWink Inc. (UWKI)

[SOKAL6]

You can assess the secondary offering from a market cap perspective. They want to issue $15 million and the current price the market cap is slightly less than $30 million. So,
as long as the new shares issued do not exceed 50% of the current shares outstanding, we can assume a price offered will at least be as high as current levels.

On another note, I went to uWink this weekend and it was PACKED. I couldn't even make my way to the cash register to pay my bill without knocking into 3 people. No matter what the stock price, the business is sound, if not phenomenal.

The current earnings reflect high SG&A costs (these are effectively non-product related costs) due to only having one restaurant open. Upon opening more restaurants, these costs can be allocated across multiple restaurants, and each restaurant will incrementally add contribution margin. EPS will rise dramatically as a result.

Stay long, stay strong. Add on weakness.

- SOKAL6