SILVER DINER (SLVR) Under $5.00 not for long.............. Message Board

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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 (82)	10/14/1998 11:49:00 AM
From: Leo J. Bourne	Read Replies (1) of 126

Buyout not likely. In my view, a buying company would want to wait till SLVR had a positive cash flow. Otherwise, the buyer would need to spend about $5 million to open new restaurants in order to get that positive flow. As far as the management response to a buyout, I think they would be foolish to resist if they got a price of $3. In my view they won't see those stodk price levels for several more years at the rate things are going. My rule of thumb from the financials is that each restaurant generates about $200,000 per year profit and takes a little over $1 million to open. That is a pretty good return, but the profits have been eaten up by the management expenses. I don't begrudge them that money, since they took the risks, but that approach has devastated the stock price and they have ended up with much less net worth than if they had taken lower salaries and promoted a positive bottom line. Do your own DD. I could be wrong, and indeed if I were right I never would have bought the stock in the first place at prices higher than now.

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