Replies to post #16887 on uWink Inc. (UWKI)

[Silensir]

Great post, Indeed what you spoke of are some of the possibilities. But even if what you said is true, and they wait until their balance sheet goes positive, then they're still never going to have the kind of growth that they promised. Without financing of course. It looks like they can still have a third offering of about 5 million shares and I think that might be what is need to be the final kick start. Or it might cause the stock to plummet. I know what I'm going to do if they try to do another offering. I'm going to pull out and wait until the stock bottoms once again. I still got stock just in case they pick up momentum from here on out. who knows maybe they'll use the remaining cash in the bank to build 2 more making a total of 5 company owned stores. They have enough money and if they're smart and make the right choices they can do it. Anyways 3 stores and a $17 million market cap isn't a good deal if no one if willing to buy the software. That's why I don't have high expectations anymore. Still love the warm look of H&H. The first looks uninviting compared to this one.

[Greenband]

Debt financing

I agree that a leveraged company (bank/bond financing) is more attractive to investors. However, I don't believe uWink has the cash flow to support ANY debt financing at this point. uWink needs to have a few quarters of positive cash flow to get debt financing, which they won't have until sometime in 2009.

I'm investing in financial preferred stocks now - many large bank stocks are offering returns of 9-11% for investment grade preferred stock. There is so much demand to raise capital, I cringe to think what type of interest rate uWink would have to pay to get debt financing.

Scenario 1: 3 company stores is enough to establish the reputation required to generate substantial franchising activity.

Scenario 2: Additional company stores are required to keep the momentum going - how will uWink raise those additional funds - debt financing (preferred) or equity (less risky/dilutive)?

As I have stated before, I don't see OEM software licensing contributing any significant revenue this year. I'm sure uWink management has had this discussion (with several other scenarios) while drinking beers on the iBar :)

[supadupa]

Wow lotsa words. You people are thinking too much into this. This is a penny stock. It makes no sense.

You could have something happen that SHOULD raise the price up like crazy, and have the total opposite happen. It's been happening for years and will continue to happen.

Think too much into penny stocks and you will lose your shirt imo.

Nolan is a shark. Gotta watch him carefully. He's likely already made ALOT more than anyone would if they actually owned a chain and had it profitable for many years. He's old and trying to make some bank to enjoy and leave for his family. That's MY way of thinking and I believe it to be true. Be it with a flourishing company or figuring out a way to reap the benefits of a stock that shouldn't be traded that is, giving him instant bank while he leaves something to slowly be built on.

After watching this, in 5 years I believe it will still be around $2 and maybe have 5 stores. BUT that's just my opinion.

There's alot more stable growth out there that will roll faster that I won't have to worry about every hour of the day like a penny stock.