America Resources Exploration Inc. (OTCBB:AREN) Springs Back Up
America Resources Exploration Inc. (OTCBB:AREN) recovered 25.00% after a frenzied session of buying last Friday – and it seems like its momentum will be carrying it further up the charts in today’s session as well.
Evidently, the news that AREN has acquired a fractional interest in “the Winchester #1H oil and gas well located in Madison County, Texas” had some positive impact on the ticker’s movement. Well, that and the three paid pump e-mails that hit the web that day certainly pushed AREN up.
Another rather massive round of e-mails hit in-boxes today, before the start of the market session – but that is to be expected. After all, the pumpers got paid a lot of money to keep sending out the touts, and that is precisely what they are doing.
Still, seasoned investors should know better than to take said pumpers’ word as gospel. Rather, another detail about latest developments surrounding the company’s should rightfully draw the investor’s attention. AREN has just acquired yet another piece of property. So – how did it pay for it?
AREN hasn’t announced that it has secured funds from a third party, and hasn’t filed a current report on the matter, either. This leads us to believe that the company is paying for all its recent acquisitions with shares – most probably discounted. And, suffice it to say, a 431 acres of oil-giving land is worth a lot of AREN common shares.
Of course, there is no way to be certain that this is precisely what is happening. However, investors should definitely consider the possibility of said potentially huge amount of shares suddenly being released into circulation while the company is being pumped.
Again, there is no way to be sure that this will happen, but it’s a possibility that seems more and more likely with each passing day, especially in light of AREN‘s dubious nature.