America Resources Exploration Inc. (OTCBB:AREN) Jumps Further Up
Friday saw America Resources Exploration Inc. (OTCBB:AREN) jump another 21.82% on a massive million dollar volume. So why the sudden interest?
The odd thing is that the sudden burst of buying was well under way before the latest AREN development hit the web, so it can’t really be attributed to the optimistic press release that the company published on Friday. This unwarranted jump should be enough to make investors wary, but it’s that’s not the only thing that should make investors suspicious.
Of course, there’s no evidence to support the theory that AREN is currently the center of a classic pump and dump scheme as people on message boards suspect, but there are hints that this may well be the case.
Still, even if that’s not the case – the red flags surrounding the company are just too many to ignore. Its latest financial report painted a picture of disappointing idleness:
- Cash & Total Assets – $6 thousand
- Total liabilities – $6 thousand
- No Revenues
- Net loss – $29 thousand
The company’s share structure is even worse for wear – back in 2014, AREN sold 2.3 million shares for $23 thousand worth of funds and then performed a 15-for-1 forward split this April. That last move turned said shares into 35.4 million shares, and their adjusted price was a mere $0.0007.
Another dubious detail that draws attention to itself is the fact that it looks like the company is being run from a virtual office, rather than a real one – but truth be told, that should not have come as a surprise for anyone that’s seen its financials. A company with $6 thousand to its name can hardly afford an office, or eve office rent.
Investors should really consider all these facts – as well as carefully weigh the risks of investing in an oil company in the midst of the current petrol crisis – before committing to AREN stock.