America Resources Exploration Inc. (OTCBB:AREN) Gets Demolished

America Resources Exploration Inc. (OTCBB:AREN) lost another 21.13% of its market value yesterday, as the paid pump that was keeping it up started to lose its potency.

It is worth it to note that the horrible crash happened in spite of the fact that at least 13 paid pump e-mails hit inboxes before the start of the session. This is, by far, the biggest single volley of touts that promoters have sent out, trying to convince investors to commit to AREN stock – and the fact that it failed to nudge the ticker upward is sort of indicative that the pump is going sour.

In and of itself, this should be a clear enough sign for any potential buyer to be ware. The end of a pump usually spells disaster, even if the touts did not manage to bring the ticker in question all that high – and this particular pump campaign took AREN from $0.15 all the way up to the dizzying high of $0.9!

As the old saying goes – “the bigger they are, the harder they fall”. AREN‘s fall seems to have already started and the ticker seems to only be gathering more and more downward momentum, which is why it wouldn’t be surprising to see it sink below a quarter, or even below a dime in the next few sessions, before once more fading to obscurity.

This is not to say that AREN does not represent an opportunity for trading. The death throes of a paid pump may well afford it the volatility to bounce once more – but that will most likely be a dead cat bounce. Traders would do well to keep that in mind, and act accordingly.