Mentor Capital Inc (OTCMKTS:MNTR) Uptrend Presents Good Buying Opportunity

Mentor Capital Inc (OTCMKTS:MNTR) is at a critical point after facing one of the most bearish run in its history. Market momentum has been building in recent weeks, as the stock continues to bounce back from all-time lows. Given the amount of interest, the company is receiving from retail and institutional investors alike, we believe the stock’s bullish run is all but starting.Stock Performance Mentor Capital has by all standards underperformed the overall industry given the levels it is currently trading at. While it is still up by more than 10% for the year, it is still a shadow for itself compared to February highs of $4.82. MNTR Daily ChartThe stock is currently trading in a tight $1.32 to $1.63 trading range with an average daily trading volume of 296,741 and 30 day average of 122,809. The stock is trading in an uptrend in the name of 5 bullish bars. Immediate resistance on the upward run is at $1.60. A close above the key resistance could see the stock making a run for the $2 handle.On the downside, immediate support is at the $0.80, below which Mentor Capital could drop to its 52-week low of $0.45. The company has a debt-to-equity ratio of 0.01 and a quick ratio of 10.41.Before we assess what is likely to drive the stock even higher let as look at what the company actually does.Mental Capital Business DescriptionMentor Capital is an acquisition and investment company with stakes in the medical marijuana and social cannabis sector. The company acquires and invests in a broad range of medical marijuana and cannabis-related companies.In addition, it provides mezzanine financing to leaders in the financing space. It provides low-cost options for companies looking to venture into the sector as well as support needed for smooth transition.Mentor’s capital has made a number of debt and equity investments in Canada’s cannabis industry and its investments are slowly starting to pay off. Investors have also started to take note of the company’s growing business portfolio which is expected to drive the next phase of growth. Mentor capital Investments The legal cannabis company has invested over $1.2 million in G Formulas in addition to providing consulting services support with regard to accounting structure, audits, and sophisticated financings. Mentor CEO, Chet Billingsley, expects the company to dominate the space as cannabis and medical marijuana sector enter into a consolidating phase.

“Finding the right cash infusion to help your cannabis company remain an industry leader is difficult. Mentor Capital and its CEO, Chet Billingsley have been friends of our brand since 2013. They provide an amazing financial vehicle for G Formulas and have already offered tremendous expert advice on complex business issues,” said Ata Gonzalez.

In addition, Mentor Capital has initiated funding to its GlauCanna venture. The venture seeks to use medical marijuana for the treatment of glaucoma patients. The investment provides the company with exposure to the $2.4 billion glaucoma market. The company is currently carrying out a dose-response curve study with the help of medical marijuana. Revenue Growth A further testament that Mentor Capital is hitting the right strides when it comes to growth is the fact that it reported revenue growth for the three months ended September 30, 2017. Revenues for the first nine months of the year also registered considerable growth.Revenue for the third quarter came in at $815,102 compared to $725,709 reported a year ago. For the first nine months of the year, the company generated revenues of $2.3 million up from $2 million reported a year ago. Gross revenue in the quarter totaled $289,211 compared to $247,260 generated a year ago.However, an increase in net loss is a point of concern. For the third quarter, the company posted a net loss of (-$285,796) compared to (-$165, 051) reported a year ago. Net loss for the first nine months also rose to (-$922,653) from (-$654,751) reported a year ago. Insider Selling Regulatory filings indicate that the Chief Executive Officer, Chester Billingsley, sold a total of 208,000 shares of the company’s stock in a transaction dated November 15, 2015. The sell-off was carried at an average price of $0.71 for a total value of $147,680 Bottom LineRevenue growth in the recent quarter is a further testament that Mentor Capital strategy of investing in companies with great prospects in the Canadian legal cannabis industry is paying off. Expansion of the industry with the legalization of recreational use of marijuana should lead to more sales opportunities which should lead to a further increase in revenues.There is no doubt that Mentor Capital is at a critical point given its investment in an industry that is ever growing. The stock is already up for the year with further upside looking more likely as investors’ confidence continues to build. Current trading levels present a unique opportunity for investors looking for an exciting long-term investment.We will be updating our subscribers as soon as we know more. For the latest updates on MNTR, sign up below!Disclosure: We have no position in MNTR and have not been compensated for this article.