America Resources Exploration Inc (OTCMKTS:AREN) Slips, Pump Continues
Despite still being pelted with paid pump emails, in yesterday’s session America Resources Exploration Inc (OTCMKTS:AREN) slid by nearly a fifth. The price dropped to $0.52 per share, with volume remaining relatively heavy at 1.5 million shares traded.
After many months spent in obscurity, the stock suddenly started gathering momentum, logging considerably higher daily volume and climbing aggressively in late July. We suspected a pump job but initially did not have any evidence of one. The evidence was just trailing a few days behind, with the first pump emails we tracked arriving on August 4.
There is a whole slew of promoter outfits touting AREN, it’s the paying party that unites them. The money budgeted for pumping the stock is handed out by one Intraday Holdings Ltd. Compensation disclosed in the pumps’ disclaimers vary from a more modest $25 thousand to a delicious $65 thousand.
The pump had a very visible effect, with AREN dragging itself up from its humble levels around $0.20 and hitting intra-day highs of over a dollar per share. Here is what this performance is backed with in the company’s latest quarterly report:
- $145 thousand in cash
- $63 thousand in current liabilities
- ZERO revenues since inception
- $16 thousand in quarterly net loss
Sadly, the last quarterly and the 10-K before it list so many instances of shares being sold at prices times lower than even its current slipping price, that it would be impractical to try and list them all here. While traders should scan the filings on their own, here is a single recent example. The increase in AREN‘s cash QoQ is due to the sale of 1,000,000 shares priced at $0.15.
This pales in comparison to the public offering AREN did under its old name Alazzio, selling 35 million split-adjusted shares at $0.0006 apiece.
The skull and crossbones ‘Buyer beware’ symbol that OTC Markets slapped on the company’s profile should serve as extra warning, if the pumps, financials and previous issuance history are not enough for traders.
