America Resources Exploration Inc (OTCBB:AREN)’s Pump Turns Sour
America Resources Exploration Inc (OTCBB:AREN) fell another 7.3% on Friday, as investors started to lose their enthusiasm for its stock in spite of the barrage of paid pumps that keeps bombarding the web and the positive announcement that the company made that day.
AREN‘s stumble began on Thursday, despite of the fact that six expensive promotional e-mails hit inboxes that day. Friday didn’t turn out any better for the ticker, either, in spite of the press release that proudly announcement that it has acquired 2,834 acres of Utah land.
Under the circumstances, the fact that AREN‘s dollar volume was severely diminished a huge sign, warning investors that the ticker might be headed for a bumpy ride. Why?
Because said listlessness hints at the fact that investors are finally losing interest in AREN – and when that process is complete, the ticker will likely be left hanging, as pumped tickers usually end up.
Unfortunately for AREN‘s supporters, there is nothing substantial that the ticker could actually hang on to, in order not maintain its position on the charts. Its financials can be called horrible, to say the least:
- Cash & Total Assets – $6 thousand
- Total liabilities – $6 thousand
- No Revenues
- Quarterly net loss – $29 thousand
These figures are appalling in and of themselves, but they hint at another problem – how did AREN acquire nearly 3 thousand acres of land if it had just 6 thousand dollars on hand?
Unsurprisingly, the company fails to mention the means in its boastful and optimistic press release, but the 8-K on the matter does mention 200 thousand shares of the company’s common stock ending up in the hands of a Mr. Zheng Xiangwu in return for the land. After acquiring said shares, said seller now owns over 75% of all of the AREN‘s common stock issued and outstanding.
In conclusion – there is a very good reason that AREN is marked with the dreaded skull and cross bones stamp on its OTC Markets profile. Investors should think really hard about what that means, and very carefully consider whether or not to heed that warning.
