Anastas Gegov

Mentor Capital, Inc. (OTCMKTS:MNTR) Gets Corrected More Seriously

by Anastas Gegov January 21, 2015

The year 2014 was quite turbulent for Mentor Capital, Inc. (OTCMKTS:MNTR, MNTR message board) as the stock reached highs of more than $8 per share in the beginning of March, but quickly began to slide down the charts, obliterating more than 90% of its value by the end of the year.

This was due to the fact that the company stock gained quite a lot of investor attention around the hype surrounding the cannabis industry on which it decided to capitalize by providing services and getting involved with the companies in it.

 

 

As all companies in the cannabis industry MNTR also experienced some positive movements with the start of 2015. Unlike Medical Marijuana, Inc. (OTCMKTS:MJNA), Cannabis Science, Inc. (OTCMKTS:CBIS) or Terra Tech Corp. (OTCMKTS:TRTC), however, MNTR managed to maintain a long upward run instead of a short-lived spike followed by a correction..

 

By January 15 the ticker had managed to gain a total of over 130% since the first session of the year and the daily volumes were increasing. And all this was happening despite the lack of press releases coming from the company.

 

Still, the prolonged run might be attributed to the fact that MNTR's market cap was significantly lower than that of the above-mentioned companies. The numbers contained in te company's balance sheet for the period ended September 30 also don't look that bad. Here is what MNTR recorded.

 

  • cash: $553 thousand
  • current assets: $2.66 million
  • total assets: $5.53 million
  • current liabilities: $212 thousand
  • total liabilities: $1.54 million
  • quarterly revenues: $547 thousand
  • operating loss: $190 thousand

 

Considering the lack of news, however, it all had to come to an end. MNTR recorded its first session in the red for 2015 last Friday when it lost a small 1.29% of its value and we saw the volumes drop. This trading week started off worse, however, as the ticker dropped some 21.57% down the charts and closed yesterday's session at $1.20 per share. The volume was not that big again and the daily trade value came at $163 thousand.

 

The company was mentioned in a report by Cannabis Financial Network yesterday afternoon alongside CannaVest Corp. (OTCMKTS:CANV) which also recorded decent gains in the past week. Unfortunately, CANV also retreated yesterday and it seems like the following sessions won't be that favorable for both tickers.

 

In any case, it is imperative that you do your due diligence and weigh out the risks associated with every incestment, especially taking into consideration the red flags that we talked about in our previous article covering MNTR.

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