Nitro Petroleum, Inc. (NTRO.ob or OTCBB: NTRO, NTRO message board) is yet another oil and gas mining related company you need to thoroughly investigate before jumping in on their stock. It seems these low budget miners just don't have another option but to promote their stocks to gain some easy money from additional stock sales.
Nitro paid at least three websites that engage in stock promoting, so beware if you see unexplained share price action sometime in the coming few weeks. On the other hand, minor fluctuations might occur in relation to news announcements made on August 20th and 21st. Nothing special was announced - just an update for their performance on some wells they're mining.
Nitro has been operational from 2003 but their achievements suggest the company was not too successful with their ventures. The company is making some money from oil extraction at current levels it's far from covering their expenses. In fact, their working capital deficit suggests trouble as most of their capital is long term investments and purchased assets - far from liquid investments and thus incapable of covering the short term liabilities.
Further, here's an interesting quote from the company's latest SEC filing, concerning the working capital deficit: "Management has no formal plan in place to address this concern". This was filed on June 19, 2009. There were no updates on how the company is going to deal with the matter, seems they're only concentrated on obtaining new leases and re-working existing wells. Not much of a plan but more of a gamble in my opinion. If it still looks like a promising stock to you, then you probably fell for the promotional hype.
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