As Comstock Mining Acquires Gold Hill Hotel Our-Street Upgrades Rating

May 1, 2011
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Comstock Mining, IncThe 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.

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2 Responses to As Comstock Mining Acquires Gold Hill Hotel Our-Street Upgrades Rating

  1. Bury Goldwater on June 1, 2011 at 9:13 pm

    If Comstock mining is so well capilalized then why did they pay less than 1/2 the asking price for the Gold Hill Hotel? They paid $840,000, $500,000 cash and the hotel is carrying $340,000 in paper. Maybe their plans are not long term. They could be down the road in a year and the folks would get the hotel back. Behind the scenes stock maybe?

  2. [...] a surprisingly negative review of Comstock Mining Incorporated, along with this addendum, and now this one about us. And now an update about the company’s recent [...]

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