Pages

Custom Search

Search Mad Money Fund Blog

Share Stock Picks

Monday, January 20, 2014

Buy on Dips Mentor Capital, Inc. (OTCMKTS: $MNTR ) Warns of Short Squeeze High Risk Stock * breaking news **



Mentor Capital, Inc. (OTCMKTS:MNTR) CEO, Chester Billingsley, defines the ?Cannabis Cancan? as the pump and dump activity that the securities agencies have warned about for the public marijuana sector.

These can be recognized by the characteristic trading pattern of about a 60% upward sloping chart with lots of trading (the dump) near the top on the way up. This is accompanied by a number of information press releases, ironically much like this one, that get attention but do not themselves indicate an improving bottom line. Invariably, the public hangs on for too long in this up and down chorus line,.

To distance itself from these hurtful practices Mentor Capital, Inc. has taken several preventative steps and invites other cannabis CEOs to strongly consider doing the same. First, the Mentor Capital CEOs shares are locked in an escrow. He has no shares to dump. Second, no shares are issued except for cash or assets. There are just no new 144 shares issued to management, consultants or the board. Third, no IR firm is hired, and in the current market, one would hardly be needed. Finally, the CEO salary is $104,000 per year and has been for 15 years.

As a result of these shareholder defending actions Mentor Capital, Inc. has only six million shares outstanding rather than the more typical cannabis industry norm of hundreds of millions with that associated dilution. If all Mentor warrants are exercised, outstanding shares would expand to 29 Million from the exercise. At that time, the company could then theoretically hold the now projected proceeds of those warrants which would be $140 Million. That is $4.82 per share cash if at a purely theoretical share price of $7.00 per share. 100% of these projected funds are earmarked for cannabis investment and acquisition.

Having negated any pump and dump risk, Mentor Capital?s current warning is for potential shareholders to also avoid any artificially high share price triggered by a potential short squeeze. Approximately one million shares traded in the first two and only hours of Mentor Capital active cannabis related trading. However, according to MC Transfer, shareholders have only deposited two million shares into their brokerage accounts, so far. Until the active float normalizes, market makers may have difficulty covering what they have already sold.

No comments: