Borislav Tonev

Mentor Capital, Inc (OTCMKTS:MNTR) on the Rise Again

by Borislav Tonev January 16, 2015

In other words, MNTR's history has been quite turbulent. The same, by the way, can be said about the stock performance. The one from last year is particularly interesting.

The ticker ran from just over $0.22 per share on January 2, 2014 to a 52-week high of a mind-bending $8.99 per share. MNTR then experienced a truly devastating crash. Most of the market cap vanished rather quickly, and in August, the stock sank in the sub-dollar levels.

That's a truly appalling performance, even by pot stock OTC standards, but we should note that MNTR appears to be in a better shape at the moment. In fact, it's attracting quite a lot of interest.

Yesterday, for example, the stock gained as much as 13% and finished the day above the $1.50 per share mark for the first time since July 2014. At $310 thousand, the dollar volume wasn't too bad either.

The company also appears to be making steps in the right direction. In December, it filed a Form 10 with the SEC which means that once approved, MNTR should be up-listed to the OTCQB tier. The filing does show some positive trends in terms of financials. Here's what MNTR recorded at the end of the third quarter of last year:

  • cash: $553 thousand
  • current assets: $2.6 million
  • current liabilities: $212 thousand
  • quarterly revenues: $544 thousand
  • quarterly net loss: $177 thousand

There is some money in the bank, MNTR has a working capital surplus of more than $2 million, and the revenues, although not sufficient to outweigh the expenses, are growing.

Both the stock and the company are showing some signs of progress, but does that mean that you should forget the problems from years gone by?

That's your decision to make, of course, but while you're contemplating your options, you should bear in mind that MNTR's history has been fraught with controversy.

Chester Billingsley has been with the company since the very beginning, and over the years, he has been accused of numerous shady practices. A Silicon Valley Business Journal article from 1998, for example, states that he was once actively promoting MNTR's stock (back then the company was called Main Street AC). Four and a half years later, the SEC had something to say about many of Mr. Billingsley's activities. Among other things, the Commission wasn't particularly happy with the press releases he was issuing.

So, a thorough research into the past might set off some red lights, and the fact that MNTR is working out of what appears to be an apartment complex isn't helping with the credibility. That's why, treading carefully might not be a bad call.

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