uWink Inc. (UWKI)

[the big guy]

I posted on Peakstocks again. Someone posted about "Buying Big". I could not resist... I called him "naive". The arch villain in me could not resist that either... We will see how he responds.

http://peakstocks.com/uwink-signs-software-licensing-deal-with-chilis-also-opens-3rd-restaurant#comment-1185

Chris:

I think you are being a bit naive in response to this poster. While uWink is definitely cheap, it is still in a downward slide and it would be best to wait it out. My main contention is that you are always quoting cash-on-hand numbers that are clearly bogus to some degree(same thing as “cash value”). That figure of 3.2M appears in their last financial statements. Well, that clearly cannot be the case at this point. Not only have they spent 600k on the MV restaurant, but they have about 1.2M in ST debt. Lastly, they still have a cash burn. the best they could hope for with 3 restaurants is a break-even situation. They won’t have that, likely will burn through another 1M at the current rate. I can’t see them having more than 500k - 1M left after this quarter. Their statement that they have 12 months of cash flow is simply not real. It will not stand up to any analysis.

While now is not a bad time, I say wait for an even better time if you believe in the company, and that time is prior to Xmas and after the next financials are released (mid-Nov). Let these issues resolve themselves. The good thing about uWink is that since they have no debt, going bankrupt is not possible. One outcome is that they could become a takeover target fairly quickly when things turn around. In any event, change is almost for certain, either cost-cutting or further financing. Those changes will impact the stock price. I say, wait for it and really low-ball it when those changes occur.

What I like about uWink is that they are one of a very few software vendors with revenue-generating restaurants that double as test centers. If they could live on those restaurants they would be a powerful entity.

The downward trend is still strong. When you compare uWink with what else is out there, the price is still too high. One could wait until it settles out to .10-20. After the next financials are released and we know how they are dealing with their financial needs will be the time to buy. What ever they do (further financing or cost-cutting) will depress the stock price.

Just my opinion for the poster.