Newcomer Norstra Energy, Inc. (OTC:NORX) Looks Extremely Bullish

Spring is in full swing, and for those in the mood for a fresh thing, Norstra Energy, Inc. (OTC:NORX) is the best proposal. Bursting on the OTC scene at the beginning of March, the stock of NORX has inched higher, with buying outpacing selling, and pushing the ticker from 35 cents to half a dollar in about three weeks.

While bullish on the stock market, NORX reveals it is a development stage company, and thus without revenues and with some accumulation of debt. This is not unusual for a penny stock mining and energy company, but here is the exact financial situation:

• $8,373 cash

• $13,166 total liabilities

• Zero revenues

• $40,460 accumulated loss since inception

• $20,238 loss for the three months ended November 2012

The first thing that comes to mind with such a bullish new ticker is that a promotion may come soon, as one of the bigger pumpers take up NORX to improve their track record and tout an attractive story. An additional positive sign is that NORX has not accumulated too crippling debts and losses.

NORX bears the uncertainty of a very new company, and its 50-cents range is just the beginning of what could be a long fall, or an attempt to reach a higher price. While the promotion is still just a potential development, the company constantly attracts attention with press releases and promises of mineral interest acquisitions, so buying and appreciation may continue to go strong.

The company expects to make its first oil well by the end of this year, by buying an already exploited field from Summit West Oil, Inc. The company plans to expand with debt and equity financing, which it may well do, with 150 million shares authorized and so far only 38 million oustanding. NORX promises that the future development is in good hands with Mr. Glen Landry as a CEO. Mr. Landry brings to the company a long experience as a geologist, but we are uncertain how this will translate into profitability.

For now, it is best to keep in mind the possibility that NORX may correct within the day, and expect that a promotion would have a disproportionate effect on its stock. We will revisit this ticker to see how it develops, so that you can better estimate if you can afford the risk. With promotions almost quiet over the Easter weekend, we may expect pumpers to look around for new proposals, and NORX is a very probable choice. The pump may come in place of Goff Corp. (OTC:GOFF), a long-standing promotion from the energy sector that may soon lose the charm.