BUY ALERT: uWink Inc. (Nasdaq: UWKI.OB) BUY 1/4 Position 12/6/07 Around $1.85

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What:

I am initiating the second BUY recommendation of uWink Inc., Nasdaq ticker (UWKI.OB)

Why:

There are a few reasons why I am buying additional shares of uWink:

• There have been recent company highlights, news items and business trends that favorably reflect the company’s continued path towards acceleration of their restaurant concept and expansion.
• I feel satisfied after further research, even with this being a highly risky stock, that a further purchase in uWink shares is warranted based upon my further due diligence and the business prospects.
• There has been continued insider buying of the company’s shares on the open market.

Read my initial buy recommendation and full company report.

Variables You Should Know:
Risk Rating:	10+ (Highest Possible Risk)
Position Size:	1/4
Buy Around Price:	$1.85

• uWink trades with very high bid/ask spreads. Learn how to protect yourself from getting screwed by the market makers.

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(3) comments to “BUY ALERT: uWink Inc. (Nasdaq: UWKI.OB) BUY 1/4 Position 12/6/07 Around $1.85”

1. rd Says:
   December 6th, 2007 at 12:19 pm

   I like most of your picks, but uWink looks like a DISASTER in the making. I’ve been watching the price plunging for weeks. Are they going to need another 4:1 reverse split in the coming months (if they’re not in chapter 11)?

2. rd Says:
   December 7th, 2007 at 11:10 am

   Don’t get me wrong, I think this is probably a good concept that may eventually take off… but, small company, losing money… what IF they get some competition? They’re barely afloat now (yeah, I don’t like the fact that at SUCH an early stage they had to reverse split).

3. Chris Fernandez Says:
   December 8th, 2007 at 2:26 am

   Hey Rd,

   Thanks for the feedback whether you agree with me or not.

   As for uWink, I would not have recommended it if I didn’t feel, in spite of their past or current problems, that the upside potential far outweighs the downside risk.

   The 4:1 split was done in an attempt to get listed on the AMEX which has a $3 price limit (Uwink is currently under that).

   While this did prop up their stock price for a time, what happened was that they needed a follow-on offering to raise more capital to open more locations (since they only have 1 location that was used to prove the concept).

   This follow-on was a success, and they shouldn’t need any more money for at least 1 year or more, which will give us plenty of time to gauge their progress, and see how the company is doing.

   If things are looking grim, we can pull out and take our losses. If on the other hand, they are doing well, raising more money on more favorable terms should be easier for them, and will dilute us less if at all.

   This is part of the reason why I gave this stock a 10+ risk rating.

   I think that with all the research and due diligence that I have done, this is as “safe” a risky stock pick as you’ll ever get.

   Chris

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