Anastas Gegov

Mentor Capital, Inc. (OTCMKTS:MNTR) Blasts Into The Sky

by Anastas Gegov January 20, 2014
MNTR_chart.pngThe stock of Mentor Capital, Inc. (OTCMKTS:MNTR, MNTR message board) is usually a quiet one. It rarely moves in price and most of the sessions end without any sales of shares. Friday's session, however, was a bit different and the stock moved to a 3 year record high.

This happened after MNTR announced that its first acquisition for cannabis funding will be HempCon, Inc, a company that hosts medical marijuana conventions, that will receive $7 million from MNTR investors.

The company has been building the hype for quite a while and has announced that it will be funding 18 companies in the sector among which we see Medical Marijuana Inc. (OTCMKTS:MJNA) and CannaVest Corp (OTCBB:CANV), but this has reflected on their stock just now.

It seems that Friday's news were enough for a jump in which MNTR leaped as high as $2.90 per share. In the end of the day the ticker closed with a massive 759% gain in price at the lower price of $1.90 on 943 thousand traded shares that generated $1.44 million in dollar volume.

8447LOGO.pngThere are no clues for a paid promotional effort at this time which would easily explain the huge percentile movement. The people on the investor forums are also going crazy, touting the stock of MNTR and bragging about their wins, which might be another reason for the high gain in price.

However, how long can the hype last and what will happen after. Despite that the company management is aspiring to fund the bigger players in the medical marijuana sector through its shareholders' $140 million in freely tradable warrants, the company's own financial state is not rosy.

 

  • cash: $138 thousand
  • total current assets: $1.5 million
  • total current liabilities: $6.2 million
  • revenues: $0
  • net loss: $186 thousand

 

Considering the low amount of cash they have on hand, the massive liabilities and the lack of revenues the current market cap of $12.19 million that MNTR has seems to be a bit overpriced. It's not such a surprise that after announcing such news their stock has made this run, but what will happen from now on.

124PHOT_chart.pngThere is, of course, a serious possibility for a correction, so be sure to do a lot of due diligence and weigh out the risks if you are thinking of betting on MNTR.

Growlife Inc. (OTCBB:PHOT) on the other hand is still sinking, but commands great volume. Cannabis Science Inc (OTCMKTS:CBIS) has put a slide to its downward slide in Friday with a 21% gain.

Comments 1

1. Guest
January 21, 2014, 08:13PM

Quotes Friday's jump in Mentor came as a result of Luke Murray's announcement "bought MNTR at $.41 per share" at 1:46 PM. Within minutes it was up over $2.70 per share. A simple case of the sheep following the herder. Luke sold his shares at 1.57 PM (yes, 11 minutes later) at between $1.90 - $1.49 per share. Luke runs the day trading site at JasonBondPicks.com. I'm amazed the stock held up over $2.20 per share today.

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