Jovita Baltrusaityte

Nitro Petroleum Inc. (OTCBB: NTRO) Doubling its Stock

by Jovita Baltrusaityte June 10, 2009
ntro.jpgAt the end of 2008, Nitro Petroleum had doubled the number of shares outstanding. After a settlement agreement with holders of certain of their outstanding demand promissory notes, the company issued almost 50 million shares. Currently, there are over 100 million outstanding shares. Let's look what else is happening at the company.

Nitro Petroleum Inc. (NTRO.ob or OTCBB: NTRO) acquires, operates and explores oil and gas properties. Recently, the company was advised to re-complete and deepen the Sharon No.1 well. However, with only 3 employees at the company there does not appear to be adequate personnel available to achieve its plans.

There are more things which make worry me. The company and OTC Reporter made a deal costing 1 million free trading shares. On the other hand, this fee constitutes only 1% of the total outstanding shares.

It should also be mentioned that the performance of the company has been worsening from 2008 to 2009, according to the annual report which was filed late. Current assets have dropped from $255,000 to $88,000, and liabilities decreased more than 5 times; however, NTRO is still unable to cover all its liabilities. Although the annual loss of the company has declined, Nitro is suffering from this loss.

Considering the worsening financial performance of the company and the drastic increase of the number of shares, is there any chance that the stock promotional campaign will be able to lift the present share price over $0.04?

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Reference:
http://www.nitropetroleum.com/

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