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Re: vivasoft post# 17093

Tuesday, 07/08/2008 1:50:50 AM

Tuesday, July 08, 2008 1:50:50 AM

Post# of 19383
Every company has a "value" and uWink is no different.

As stated in my previous post, I believe the current price relates to a sizable position being unwound. To the best of my knowledge and research, that position should be approaching completion (I am expecting by end of week so long as we keep 50k shares per day and or see a 100k - 200k share print). Once this is out of the way, the stock can resume trading based on fundamentals again.

So many on this board seem to be thinking that the stock is showing everyone what the "value" of uWink is. Try making an offer to buy the company for $10mn and see what kind of response you get? (it will be no). Try buying it for $20mn and I expect you will get the same answer.

I throw those numbers out to prove a point that we have a far from perfect financial market right now with respect to liquidity. The volatility across the spectrum of stocks large cap to small cap is high (even if the VIX doesn't show the extreme readings we got in January or March). Sure, our economy is weakening and one reaction to a weakening economy is that people will spend less on discretionary items such as eating out. People will not stop eating though. People will not cease to seek entertainment. And more to the point of uWink, external venues of all kinds will not just close up shop, but instead seek ways to lower expenses....and again...this is what uWink allows firms to accomplish - lower expenses while also driving indirect revenues amidst the entertainment value. I look at the keynote speech Nolan is announced to deliver as a big opportunity. Not for the stock, but for the long-term value of this enterprise. Without a big podium, Nolan (and uWink) will not be able to reach the audiences it seeks for licenses. To be honest, I wish I knew more about how many people we should be expecting in attendance at that keynote, but so long as one or more sizable entertainment chains is there, we will have a new major franchisee/licensee who wants to lower cost without sacrificing revenues or profits.

I would love to see Jefferson (owner of NeoEdge) buy a large stake in uWink since it would reinforce the message that Nolan is truly onto a major platform/opportunity play. Equally important is to see the execution of locations in Canada outfitted with the uWink platform.

I will try to post weekly on this message board, but I would really like to see the conversation stay relevant to opportunity in expansions on licensees. To underscore my topic, I am not really concerned with there being a one hour wait for a table in Hollywood, but rather to have people confirm if the experience of not having a "formal/traditional" server for each table be something that could translate well to other entities.

For example, could a chain hotel use the uWink platform to power the in-room TVs with an ordering system akin to uWink's in-restaurant design? To push the limits on my question...could we see McDonalds be interested in being a licensee? Since McDonalds would be extreme, consider Buffalo Wild Wings, or Chilis, or Applebees, or California Pizza Kitchen? As a reminder, the mission at uWink is that most restaurants can benefit from reducing labor cost with the uWink platform such that even at lower traffic levels a venue could still be profitable. Let's get discussions going about whether and where this concept can and cannot work as a cost reduction mechanism (and then separately debate whether this platform could also help such an entity sustain or grow revenues. I believe many many many could benefit, but that is the heart of what I would like more opinions.

Thanks for reading and thanks in advance for your thoughts. I really believe the current stock price is at a ridiculously low value, but for this to be proven, all of us need to get incremental conviction in how much can be accomplished as the economy remains weak and or weakens further. I am here because uWink has a solution to many firms problem on the labor cost side...and then meaningfully excited about the revenue growth that the platform can bring to a firm as well.

Debating whether the 3 locations can make the company money is a conversation that doesnt even justify being involved in the stock. It is still a good conversation, but we are all here for the potential home run that Nolan has cooked up. So, I guess I am asking for a return those conversations and help all of us ensure that even if the economy stays weak or gets weaker that we can still see this company attain meaningful valuations to justify the pain of illiquid stocks.

You know my vote is yes it is worth the volatility and pain. Yet, I maintain the current weakness is due to a meaningful enough holder still completing their distribution because they are out of business....not uWink. Let's give the next potential buyer of size some comments and thoughts about where the next big deal can come from.

As always, thanks for your thoughts good or bad and best of luck making money (to me and you).