The acquisition of the historic Gold Hill Hotel outside Virginia City demonstrates, in our opinion, a significantly greater involvement of 38% stakeholder John Winfield through his Winfield Group LLC than we originally concluded. In addition to the Winfield Group LLC, John Winfield is also the CEO of Portsmouth Square, Inc (OTCBB: PRSI) which is engaged in the ownership, development, and lease of real state properties and are the primary owner of the San Francisco Hilton. Winfield is also Chairman, President and CEO of Santa Fe Financial Corp. (Pink Sheets: SFEF).
Despite Winfield’s decision not to take an official position in Comstock Mining Inc, the Gold Hill Hotel purchase suggests that Winfield is not just a passive investor in the company, as originally thought. The purchase does not appear to us to be based upon income potential of the property as much as it seems to be a strategic move to ingratiate the company with the residents of the communities adjacent to the various properties Comstock Mining is focused on. We think this is in response to the push-back by local residents as Comstock Mining reactivated their exploration activities.
As a result of these new conclusions, we have added Mr. Winfield to the management section and upgraded the rating accordingly. At the same time, since Winfield Group is the primary owner of the Series A convertible preferred stocks, and since Winfield has no history as a penny stock player who would enter a stock with the intent of dumping out of it, we have also upgraded our rating on the Stock and Market section. As a result our total rating on Comstock Mining, Inc has been raised from 44 to 54.
Disclosure: We do not have any equity or financial interest in Comstock Mining or its stock. As always, consult a qualified financial advisor before purchasing any stock.