Comstock Inc (LODE)

[baystock1]

At the AGM John Winfield expressed concerns that the cash burn rate was too high. I also got the impression that he was not happy with the way management had performed.

It would be impossible for these 2 investors to sell out without driving the share price down into the low pennies per share. I hope that rather than attempting to sell down their position, these 2 shareholders would work together and arrange for a change in management, if the need arose. I am not sure that the need is there yet, but If Corrado cannot close on one of these two value drivers in the next few months or if he attempts to do another equity raise at these low share prices, that might be the signal that his time as the leader of this company needs to end.

As far as I am concerned, Corrado has implicitly committed to keep the share count below 250 million shares until he has been able to show the market that this company is worth $500 million and $2/share by 2020 timeframe. These 2 big shareholders seem to both be value investors and should hold him accountable for preserving the value per share of this company. If Corrado destroys the value per share by selling equity at these low prices, they should get together and replace him with someone who will preserve the value of the company until such a time as there is a turnaround in the gold price and demand for shares in gold juniors comes rushing back.