Is It Time To Book Profits In Mentor Capital Inc (OTCMKTS:MNTR)?

Fresh from a major fall in its share price, Mentor Capital Inc (OTCMKTS:MNTR) has a way to go in convincing the market of its value.However, from analysis of its financial performance and recent operating developments, there remains a possibility that the value will go back up sooner rather than later. In this piece, we provide you with details of the company, an analysis of its financial performance and its most recent operating developments.Take a look at the stock’s price movement over the last year: MNTR Daily ChartCompany ProfileMentor Capital, Inc. was established by Chester Billingsley in July 1994 and is headquartered in Ramona, CA It is a public company which invests in large pre-IPO cannabis related acquisitions and fundings. Mentor takes a significant position in the various members of our family of participating companies but leaves operating control in the hands of the cannabis company founders. This allows cannabis founders to continue to lead and grow their businesses with the funding, acquisition currency, and benefits of working within the public environment.The firm also engages in the provision of management consulting services. It operates in two segments: Cannabis & Medical Marijuana and Legacy Investment. The Cannabis & Medical Marijuana segment includes Electrum and NeuCourt. The Legacy Investment segment includes Waste Consolidators, Inc., which works with business park owners, governmental centers, and apartment complexes to reduce their trash related operating costs. Investors also may find liquidity if they choose to exchange all or part of their ownership for Mentor shares.For additional information on the company, check out our previous post here.Recent DevelopmentsVery recently, the firm announced that during January it invested a further $0.9 million into G FarmaLabs which brings the 10 month multi-investment total from Mentor to G Farma to $1.8 million, this is along with and to an early and separate $0.6 million stock transaction. With financial support from Mentor Inc., it is more likely that G Farma will have the capacity to expand its bottling and extraction business in its bid to win over the California adult use market.Founder of G Farma, Ata Gonzalez explained that the firm always had a great relationship with Mentor Capital’s executive team and it was indeed an honor that they have continually chosen to ensure the MNTR’s growing brand has been and will continue to be well-funded moving into future.Chief Executive Officer of Mentor Inc, Chet Billingsley added that shareholders had already purchased additional shares in the new year to be able to fund the entire present G Farma financing. Fortunately, the firm was in a position to have excess cash to invest, a great operating team inspired by Ata Gonzalez to channel acquisitions and investments, all of whom are operating in the adult use and high growth medical marijuana cannabis market that has performed well in recent times.In February 2018, the firm announced that it had gone into the cannabis market in Colorado through its recent investment in Pueblo West Organics, LLC.Pat Leonard who is well known in the medical cannabis industry and Co-founder of Pueblo explained that he had first suggested a collaboration as far back as 2013 to Mentor’s CEO, Chet Billingsley. He added that it was a positive step to finally have both parties working together. Pat Pen Products by Pueblo is already known to be available throughout Colorado and will soon be sold in other states.In line with its historic practices, Mentor mentioned that it was interested in making a series of cannabis-focused investments with Pat Leonard, which has led to the formation of Mentor Partner II, LLC which is to be used as a vehicle for this specific purpose. The initial cost of the investment here is estimated to be a $40.4 million lease of a system to be used for supercritical extraction.Financial PerformanceAt the end of 2016, the firm was able to increase revenues, a trend which has continued over the last three years, albeit at a very reduced pace. Sales recorded for the year was $2.76 million, 8% above $2.56 million from 2015. Not so impressively, cost of sales increased by 14% across both years, showing a reduction in efficiency. Net loss for the year was $0.86 million, compared to net loss of $0.8 million in the previous year.An assessment of the balance sheet shows that the firm is not highly leveraged. Its high liquidity indicated that operations are unlikely to be brought to a halt anytime soon.ConclusionAlthough things seem to be positive, when the currently volatile nature of the markets is considered as well and the amount of uncertainty still involved, further research may be required before making a decision to buy the stock.We will be updating our subscribers as soon as we know more. For the latest updates MNTR, sign up below!Disclosure: We have no position in MNTR and have not been compensated for this article.