I am just wondering something Netman. If you have some connections there and were talking to them, would perchance have asked them how they intend to fund their business over the next (this) quarter? I know that is the first thing I would ask them. A product is a product is a product, good and bad. Selling something takes skill and time. Time is money. It is not a matter of getting on a preferred vendors list and distributing a bunch of brochures to dealers. The product will never sell itself.
No, I did not read the entire Q, but I don't need to. I can see what matters. It is the above.
What the funds are doing is not insane. It is a reaction to the statement. These are business people asking the same question, especially in today's credit market. I have seen this many times. Examples abound. Funds simply ditch anything that is not financially viable, and their prudence is usually warranted. Consequently, nothing is worse for a stock price than this kind of turmoil.
Without funding, the ST creditors will simply stop delivering supplies. Banks will demand payment. etc. Eventually leaseholders will lock the door. Recommending closing WH is useless. It is a revenue-generator. Better to keep it. Very dollar counts.
What I would like to talk about is what are the financing options available to the company? That is what we should be wondering. I really don't know because uWink is so unique. I cannot see a bank lending them money even in good times. Banks would require that the debtor at least be cash-flow positive.
And this is a paradox to the above: what advantage does it give uWink that they have no debt... lol.?
What about a Private Placement (PP)?
WHat about some kind of takeover or partnership where uWink give up some control? uWInk is not unattractive in the right hands. A sales-driven organization could do wonders for it.
This is such a weird situation that I really don't know what even the options are.. but that is what I would be asking about, not how great their products are and how they will sell. That is irrelevant, secondary at best, now.
