America Resources Exploration Inc (OTCMKTS:AREN) Can’t Find Rock Bottom
America Resources Exploration Inc (OTCMKTS:AREN) crashed another 44.88% on a reduced dollar volume on Friday.
This latest slide brought the ticker dangerously close to the dime mark – and by the way things are looking, it wouldn’t really be surprising to see AREN drop even lower in the sessions to come. Why?
For more than a month, AREN was the hottest paid pump on the OTC Markets. Pumpers were paid more than a hundred thousand dollars to tout its stock – and they did an awesome job of it. The ticker exploded up the charts, and on occasion even crossed the dollar mark. However, it was clear to everyone involved that had done even a modicum of due diligence that this state of developments would not last forever. Experience teaches that even the most massive and wildly successful pumps lose their efficiency over time, thus it was just a matter of time until AREN was knocked from its high perch.
And, once AREN started falling – really falling – it headed down hard and fast, and there doesn’t seem to be a way for the ticker to recover. The current situation seems to be the following – AREN‘s reputation is ruined by nearly two months of continual pumping. The company’s financials seem unimpressive. It keeps announcing various acquisitions without clarifying how it has managed to pay for them, and it’s pretty clear that they are most likely financed through issuance of huge amounts of stock, that are then likely finding their way onto the market.
Overall, it is very difficult to find anything optimistic about AREN‘s current state of affairs. This is why the prospect of a lasting recovery seems unlikely for AREN in the immediate future – although a dead cat bounce is not out of the question.