Comstock Considers Sale to Offset Losses

David Shapiro, an equity analyst with Aegis Financial in Arlington, who posed the conference-call question about selling the company, said Comstock doesn't appear eager to go on the sales block.

"They don't want to sell until it's absolutely necessary," he said.

He said red flags about the company went up more than a year ago when it began having problems with its banks. He said the company was doing everything necessary to obtain loans and renegotiate debt and "should be in good very good shape for another year."

But he said its future may depend on the patience of its lenders.

"It comes down to whether the banks play ball," he said. "If all the banks decided to pull the plug on them, you could be looking at a Chapter 11. That may not be in the best interest of the banks."

Bruce Labovitz, the company's chief financial officer, said during the conference call that the company had every intention of operating in 2008 as "a going concern."

"While there are no guarantees that our lenders will continue to cooperate or that the market will improve, we continue to believe in ourselves, and our prospects," Labovitz said. "We intend to work diligently throughout this year to continue to renegotiate and restructure our debts in partnership with our lenders."