America Resources Exploration Inc (OTCMKTS:AREN) Gets Annihilated, Again
After a one-day bounce on Tuesday that gave investors a bit of false hope, America Resources Exploration Inc (OTCMKTS:AREN) went back to racing down the chart in leaps and bounds. Within two days Tuesday’s gains were gone and more value was wiped. Yesterday AREN closed another 27% down, stopping at its all-time lowest close.
AREN is a classic OTC story of promotions, excitement and tears. The stock spent months barely trading and shifting negligible volumes in 2015. Then a pump campaign for the ticker was launched. We’ve been covering AREN and warning about the pump targeting it since its onset.
AREN is a pink sheet stock stamped with a skull-and-crossbones ‘Buyer beware’ symbol on OTC Markets. The skull-and-crossbones are well justified, considering the barrage of paid pumps that were sent for AREN and the stock’s brief trading history and underwhelming balance sheet.
Here is what AREN had to show for itself as of its latest quarterly, for the three months ended June 2015:
- $145 thousand in cash
- $63 thousand in current liabilities
- ZERO revenues since inception
- $16 thousand in quarterly net loss
Outside of those figures, the company’s filings contain many more red flags which we discussed previously. Those include the sale of 35 million split-adjusted shares, back in the days when AREN was called Alazzio Entertainment Corp, for a total of $23,519. In more recent months, AREN issued 1 million shares at $0.15 a pop. Those who bought AREN shaes at prices reaching over a dollar per share in August may have wanted to have a look at this issuance history earlier.
AREN has dropped over 90% within the space of just over one month. There is a lesson to be learned here about pink sheet stocks, paid stock promotions and doing one’s own due diligence and we hope we managed to help a few of our readers not to learn it the hard way.