America Resources Exploration Inc (OTCMKTS:AREN) Burns a Hole in the Floor
Yesterday brought more disappointment for anyone who might have bought into the extended pump campaign targeting America Resources Exploration Inc (OTCMKTS:AREN). The company’s share price tumbled another 22%, losing nearly 90% over the course of eight sessions of non-stop sliding.
AREN is a pump job that popped out of nowhere in late July and managed to score intraday highs of over a dollar in August. A number of stock promoter outfits sent dozens of emails touting the company’s stock. The most stubborn ones kept sending out pump mail, convincing subscribers that the massive crash to just over $0.20 per share was a “discount” and a “buy opportunity”. Those who believed those promises despite the obvious red flags on the chart are now about 70% down on their investment into what the pumpers called a cheap entry point.
Intraday Holdings Ltd – the party paying for the relatively expensive promotion by 2015 standards – handed out sums reaching up to $65 thousand to various pumpers to tout the stock this summer. If those who received the emails spent a bit of time flipping through AREN‘s most recent report, their enthusiasm might have got significantly curbed. Here is what the company’s last reported balance sheet looks like:
- $145 thousand in cash
- $63 thousand in current liabilities
- ZERO revenues since inception
- $16 thousand in quarterly net loss
The report also reveals some most intriguing share issuances, including 1 million shares at $0.15 a pop in June 2015, as well as 35 million split-adjusted shares sold back when AREN was called Alazzio Entertainment Corp, issued at $0.0006 apiece.
In light of the paid pump, the horrible crash and the many people who got burned in it, the skull and crossbones “Buyer beware” symbol stamped on the company’s OTC Markets page seems well deserved.
