Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : SILVER DINER (SLVR) Under $5.00 not for long.............. -- Ignore unavailable to you. Want to Upgrade?

To: Howard C. who wrote (84)	10/16/1998 6:01:00 PM
From: Leo J. Bourne	Read Replies (1) \| Respond to of 126

It's always possible. So you can surely suggest it to them. But I think they would be unwise to buy SLVR and then replace the management. Regardless of the cost, the management does appear to provide significant support of the theme business, and I think any takeover would be disruptive rather than helpful at this point. IMO SLVR will issue new stock next year to fund expansion after they run out of cash. They will do it based on a nearly break-even year which they will get because they stopped expansion. With the new money they will open between four and six new restaurants in the space of two years, at which point they will be profitable. Then it is simply a matter of obtaining bank financing to grow the business further. As the management has learned, the important element is location, location, location. If you don't have the right location at a reasonable price, the startup and overhead costs will drag down profitability for at least a year. Also, by the way, the new accounting procedure for more rapid expensing of startup costs may cause profitability to be underestimated due to the front loading of the losses against the newly generated revenues. Do your own DD on this, of course, since my analysis may be completely wrong.