This is the author's best work to-date.
In his analysis, he points out that uWInk had a loss of 1.6M in the quarter. That is an astounding number. Incredible and unsustainable. Consider that the Working Capital is like 200k. He then says uWInk has $1.265 million in cash and equivalents on hand with no debt
Not true. It is important not to miss anything when you talk financials. It is too easy to miss the problems before it is too late. uWink has over 1M in ST debt. Debt is Debt, ST or LT. First problem. Then he says ".10/sh in cash". Gettin' the reader excited.. why?
now this:
According to management this should be enough cash to allow uWink to operate without having to tap into the equity markets or raise more capital for 6-9 months, but I would gather it is much closer to the 6 month or less time frame than 9.
Still overly optimistic. Then he talks about reigning in expenditures... that is true, and good.
NOW..THIS IS THE FIRST MENTION OF THIS.. EVER... UWINK IS:
"looking at ways they can raise additional funding to see them through until they get more software and licensing deals." aaahaaa
I knew it... here we go. hang onto your seats.
uWInk trading for around cash value.. more imagery for the reader. Not true. Book value?.. if they sell the restaurants and pack it up.. maybe.
- stock.. investors get screwed and unlikely
- debt.. impossible
- ACQUISITION!!
again one of my dark predictions.. by none other than.. a potential customer like Brinkers!
then he gets negative on their chances of survival. ok he is a realist..
again he makes reference to "inking a deal" with Chilis. That is not true and he should not be saying that until an announcement is made that definitely says that.
Now I stopped reading, not because it was bad, just because I already know the gist of it. I was reading like the first paragraph etc.. all good stuff. He is talking about potential. great.
Overall, this is very well-written. Realistic in it's analysis. He is still somewhat making false positive assumptions about financials and these "deals" but is right in hitting the positives as well. It is true that for competitive reasons details of deals may not be able to be released. Overall, great article.
I like his analysis of financing alternatives and his deduction that an acquisition maybe imminent. Seems pretty obvious to me as the only way out.
