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Microcap & Penny Stocks : SILVER DINER (SLVR) Under $5.00 not for long..............

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To: Howard C. who wrote (76)9/14/1998 8:34:00 PM
From: Leo J. Bourne  Read Replies (1) of 126
 
How long is long term?

From the most recent financials, it looks to me like SLVR won't start to turn around until 2000 or 2001. They need to have more restaurants before the cash flow becomes positive, and my understanding is that the existing capital can finance only one more. Then they would have to tap lines or credit or else raise more equity. The business model looks sound. People do eat, and restaurants do make money. But it doesn't appear to me that the explosive growth phase is in sight at this point. An important consideration is the estimated rate of earnings growth once the company becomes profitable.

Still long. Still loyal. Still losing money on the share price. But they make good milk shakes.
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