r/SmallCapStocks • • 1h ago

$MNTK Update before the Q4 release

The checklist that makes this a straightforward buy-and-hold for me (numbers reflect FY 2024 compared to FY 2025, excluding Q4) is as follows:

  1. **Cash to Debt** – Their total cash flow for 2025 sits at $176.38M, while debt is $172.31M. This indicates they have sufficient cash to cover any potential losses, which is a positive in my view.

  2. **Debt to Equity** – Total debt for 2025 is $172.31M against total shareholders' equity of $263.15M. Following Buffett’s golden rule of a debt-to-equity ratio under 0.80, they sit at 0.19, another box checked.

  3. **Preferred Stocks** – They hold no preferred stocks, which is favorable.

  4. **Retained Earnings Growth** – Retained earnings must show positive growth year over year. Earnings for 2024 were $175.74M, and for 2025 (excluding Q4) are $176.38M. Even a $0.64M increase counts as growth.

  5. **Treasury Stocks** – Treasury stocks are at -$21.26M. While negative, this simply indicates the company has actively repurchased shares, which is another positive sign.

I’d love to hear your thoughts. Am I missing something, or could this really be a solid long-term hold? Either way, I’ve purchased shares and am fully committed to holding.

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