CHCI $2 target
Based on the Company's success in realigning its debt and operating expenses with current market realities, the Company anticipates that the combination of enhanced cash flow from improved unit settlements, the cash generated by rental operations, the cash generated by land sales and the cash received from the tax refund will be sufficient to sustain operations through 2010. Further, the Company believes that it will generate a significant recovery of invested capital as a result of the completion of unit sales at the Eclipse and Penderbrook projects and as a result of the judgment award, if upheld on appeal, and that these sources of capital will position the Company to capitalize on emerging opportunities in the Company's core market.
"We believe the success of our Strategic Realignment Plan has stabilized our company and will lead to Comstock being a stronger company that is well positioned to capitalize on new opportunities," said Christopher Clemente, Comstock's Chairman and Chief Executive Officer. "Overall, we have reduced total debt from approximately $340.0 million at September 30, 2006 to $68.0 million at December 31, 2009. Additional benefits of our Strategic Realignment Plan include: enhanced operating cashflow, reduced operating costs and the potential to operate profitably in the near term. We are confident that we are poised to continue the trend of profitable results which began in Q3 2009 as the benefits of our Strategic Realignment Plan impact results, and we continue working diligently toward our goal of rebuilding shareholder value through near and long term positive operating results."
