Comstock Inc (LODE)

[TMLonggun]

It's been my experience that companies with strong fundamentals eventually bounce ... If lode wasn't achieving goals/making substantial progress in its mining, production increases etc I would have left a long time ago.

LODE does not have strong fundamentals at this point in time. I also don't think they have made "substantial" progress in the past two and a half years. What is the point of making slow, incremental increases in production if each step "forward" is actually reducing the value of the company instead of increasing it?

"Hey we lose $300 an ounce. You know what would solve our problem? If we mined even more ounces at a slightly smaller loss!"
"How would that help out the company? Wouldn't we lose even more money?"
"Yes, BUT, we get our bonuses for generating "shareholder value" har har har!"
"But we haven't generated any shareholder value!"
"Exactly - and it will only make the millions we get taste even sweeter. We can drive our Porsches by LODE shareholders at Christmas and laugh as they eat sardines and popcorn for dinner. It's all pure gold ipdads for my family for Christmas, paid for courtesy of LODE rubes."

Now that may be an exaggeration but there are many LODE shareholders, myself included, who feel the same way.

It makes me sick thinking Corrado could run LODE so poorly and yet still become so ridiculously wealthy in the process. I don't think people should become wealthy by failing and running their businesses into the ground regardless of whether it is in the private or public sector.

LODE's fundamentals are tied 100% to its ability to make profits. It does not, ergo its fundamentals are terrible. Because they have proven their deposit is not economic (at least with its current management/structure and gold prices) it means all of the gold LODE has found is worth almost nothing instead of $100+/ounce like many of its peers. But when LODE loses per ounce who would pay $100 for the chance to lose even more?

As you point out you can buy even the best companies for huge discounts, so there is no reason whatsoever to purchase LODE except as an optionality play on higher gold prices. I would argue that since you can buy the best stocks for the same prices as the bad ones you should purchase the McLaren instead of the Civic sitting right next to it. Now is the time to be choosy.

All IMO.
Take care everyone.
-TM