Mentor Capital, Inc. (OTCMKTS:MNTR) Recovers
Mentor Capital, Inc. (OTCMKTS:MNTR)’s stock literally exploded last week, gaining 782% in just 2 trading sessions. We saw a serious correction afterwards, but the stock managed to recover in the last day before the weekend, despite the controversial information on the web.
With no new press releases on Thursday and Friday, the ticker closed the week with a good 36% gain at $1.94 on quite the volume. We saw 207 thousand shares switch hands and a dollar volume of $377 thousand, even though there were some bad news on investor forums.
The bad news, as we wrote in our previous article, were that the press releases that MNTR are making may be fraudulent. As we stated, there was a user on iHub that posted a picture from an email that he had sent to HempCon, Inc. asking if MNTR are really going to fund them with $7 million and he got a negative answer.
It appears that he has also sent such inquiries to other companies that MNTR is allegedly going to fund, but is yet to receive a reply. Nonetheless, the stock is on the rise again and people are going crazy around the message boards.
If the company creates a lot of buzz, however, the SEC could initiate an investigation and if the PR turns out to be fraudulent, the stock may be put on a temporary halt, which would lead to a massive drop once it starts trading again.
MNTR is still issuing press releases in order to keep the hype going, but in the end this might prove fatal for the stock and the shareholders, while the insiders get out with the profits they have made.
This is a pretty good reason for you to tread lightly and do a lot of due diligence, before making an investment decision, especially when there is so much controversy.
Medical Marijuana, Inc. (OTCMKTS:MJNA) is also recovering and closed with a third green session on Friday, gaining 14%. The situation is the same with most of the medical marijuana sector as Terra Tech Corp. (OTCMKTS:TRTC), Growlife, Inc. (OTCBB:PHOT) and SK3 Group, Inc. (OTCMKTS:SKTO) have also been rising lately.
