Mentor Capital Inc. (OTC:MNTR) Stock Soars 27%: Now What?

Investors who may be looking into the energy sector this morning could do well to keep an eye on the stock of the classic energy company Mentor Capital Inc. (OTC:MNTR). The company came into focus yesterday after it made an announcement with regards to its strong cash position, and it could be a good move to take a look into the specific details. Mentor Capital announced that its cash pile equated to $0.10 a share without any debt, and the share price of the stock was $0.04 each. In fact, in 2023, the company announced that the theoretical cash breakup of the business could be higher than the price of the stock.

As a response to the state of affairs, three directors of the company, including the Chief Executive Officer, picked up as many as 2,128,117 shares of the Mentor Capital common stock. In June 2023, the company launched and completed the stock buyback of the last 255,252 of the 300,000 shares that had been part of the share buyback plan. In the fourth fiscal quarter of 2023, the board of directors of Mentor Capital approved a second stock buyback plan for buying back a maximum of 300,000 shares of the common stock.

Yesterday, the company announced that the second stock buyback program would begin at some point in the spring of 2024. In this context, it should be noted that on October 4, last year, Mentor Capital sold its stake in a subsidiary unit in a transaction worth $6,000,000, which consisted of a $1,000,000 one-year note and $5,000,000 in cash.

The cash from the transaction had been used by Mentor Capital to make investments in Chevron Corp., Exxon Mobil, Arch Resources, Occidental Petroleum Corp., Cameco Corp., a coal investment, and a uranium investment. All these now comprise the entirety of the non-cash assets at Mentor Capital.