Is America Resources Exploration Inc (OTCBB:AREN)’s Bubble Ready To Burst?
America Resources Exploration Inc (OTCBB:AREN) has started each of its last five sessions of fevered activity on a positive note – but now it seems like its luck is turning.
A spike of selling saw the company shed a couple of percent of its market value in the very first minutes of today’s trading – and truth be told, the only question that turn of events raises is “what took it so long”?
To elaborate – the ticker was stuck in obscurity for a long-long time, and only drew the investor’s attention due to a wildly successful paid pump campaign by a few pumper outfits including SmartStockChoices, StockTipMagazine, and BestAmericanStocks.
However, as we all know pump jumps don’t last, and it’s just a matter of time before they turn ugly. This is especially true for dubious OTC Markets companies that have nothing to their name – and upon closer examination, AREN does not seem all that dissimilar from those.
Its latest financial report showed a picture of appalling idleness:
- Cash & Total Assets – $6 thousand
- Total liabilities – $6 thousand
- No Revenues
- Net loss – $29 thousand
After a glance at these meager financials, the fact that the company seems to be operating from a virtual office should come as little surprise to anyone. But that’s not even the worst part about this picture. No, the company’s share structure is.
Suffice it to say that at one point during the last fiscal year, AREN sold 2.3 million shares for $23 thousand. The company then performed a 15-for-1 forward split this April, and said split turned said shares into 35.4 million shares with an adjusted price of $0.0007.
So, let us recap what does AREN have to its name?
Weak balance sheets? Check. Operating from a virtual office? Check. Horrible dilution history and overall stock shenanigans? Check. A paid pump campaign that looks like it is ready to turn sour? Check.
Investors shouldn’t need to be shown many more red flags to know to be extremely wary of AREN.
