MJ Stocks Analysis

[dog turd cannon]

MNTR DD - "Make it up as you go."

That Steve Jobs quote is great to describe this company and others.

This will probably be the most positive DD you will read from me in this sector.

MNTR reversed into Main Street AC Inc. after bankruptcy. Main Street owed 400k in back salary which is nice of them. Now, as reverse mergers goes... this one was good in that it aligned a company that basically was an "investment club" with a company whose CEO really wants to be in hedge funds.

http://www.otcmarkets.com/financialReportViewer?symbol=MNTR&id=16949

MNTR also went bankrupt and after coming out engineered a 1000:1 reverse split for its 1400 holders. This is a pretty good sign actually. Wait... 1400 investors? But, back to that reverse merger, they also brought in a bunch of oil and gas companies (read my last post about hype-able stock sectors) and some of these... well...had leaders that went to jail for 6 years. Even the postal service was involved along with the FBI. Whatever! In the past.

So what the company did was "delist" itself from the pink sheets to the grey sheets (gray sheets if you prefer). If you don't know a grey sheet is a pink sheet only without an oversight. Basically, it is what you do if you (a) have something really, really good and don't want anyone to know about it... or have something so bad you feel the "pinks" is too respectable. Strike that they odds of the former are pretty slim.

Again... in the past. So the guy that runs MNTR is pretty sharp, Harvard, Masters in Physics, an actual linkedIn page with a picture. A person, who well exists and hasn't changed his name recently. So that in itself is AMAZINGLY positive news. And he is really, really easy to figure out what he wants.

MNTR has managed to get involved with a hedge fund. At this point, I am going to say I have no IDEA what the hell they are trying to do. I know a fair bit about managing funds and I have absolutely no idea what the hell this guy and his "hedge fund" manager are doing. It is either brilliant or completely idiotic...

Somehow, the CEO is attempting to not have a hedge fund but yet fund another hedge fund (15 actually) and not manage them but yet get 35% of the commission.

For those of you who don't know what a hedge fund is...

http://en.wikipedia.org/wiki/Hedge_fund

It is basically, a bunch of old woman pooling there money at letting one of their grandsons do whatever he wants. Except, in most cases the "money" is billions and the grandsons take 20% of the profits and 1%ish of the investment. So if you manage a hedge fund you get rich... very rich. For honestly, letting the S&P spank your ass every year.

Now the current hedge fund "associated" with MNTR has performed very poorly returning 19% over 7 years and only has 17 million in assets. Just to put this in perspective there are college Investment Clubs (college students) with larger assets.

http://www.otcmarkets.com/financialReportViewer?symbol=MNTR&id=16954

First, of all a hedge fund with under 25 million I didn't even know could exist... the fees and maintenance costs with the SEC are really high now-a-days and I am not sure how that could even function...

So now we are caught up...

This guy is real.

http://www.linkedin.com/pub/chester-billingsley/16/14/524

and so is one of the other share holders...

Earl worked for Tandem Computers, which was a good company that went bankrupt.

And they are respectable or so it seems.

And the are so easy to figure out - Chet's salary is tied to getting a percentage of the revenue of the hedge fund and that is tied to the stock being above $8 for 6 months.

Which is sort of stated on their page…

http://mentorcapital.com/investors-corner/ceo-shares-in-escrow/

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Here is the shares outstanding...

Market Value1 $12,196,693 a/o Jan 17, 2014
Shares Outstanding 6,419,312 a/o Sep 30, 2013
Float 1,545,670 a/o Sep 30, 2011
Authorized Shares 400,000,000 a/o Sep 30, 2013
Par Value No Par Value

So, according to the SEC the CEO has 10% of one of those numbers and that is tied up in escrow according to the webpage. His salary is only 100k until the stock is $8 and then he gets 35% of the hedge fund revenue...

There are only 1.5 million shares right now... so what the CEO wants is to get lot's of money into a fund or into other people's hedge funds (again I don't follow what the point is). But he wants 140million that is for sure.

So if the stock is $8.00... he gets (1% of 140 million + 20% * profits) *0.35. That is a lot of salary.

Now, there is little MM activity so this probably won't be played... but then they "invested" in MJNA.

I have to say this is pretty creative. I mean the guy went to Harvard.