Will America Resources Exploration Inc (OTCBB:AREN) Manage To Hold Its Ground?
America Resources Exploration Inc (OTCBB:AREN) has had some very interesting chart movements this month, with high volume spikes being prevalent – but how long can this uplifted state of affairs last?
Let’s examine the company for a moment, shall we? A look at AREN‘s financial reports shows a picture of appalling idleness:
- Cash & Total Assets – $6 thousand
- Total liabilities – $6 thousand
- No Revenues
- Net loss – $29 thousand
And it gets worse, as a bit of digging reveals that at one point during the last fiscal year, the company sold 2.3 million shares for just $23 thousand! AREN then proceeded to perform a 15-for-1 forward split in April 2015, which turned the aforementioned 2.3 million shares into 35.4 million shares with an adjusted price as shockingly low as $0.0007.
And, as we have discussed in our previous articles on the matter, this is not the end of the outrageous selling.
So how is any of this relevant? Well, for starters, it is highly indicative of the way AREN does business, and of the company’s dubious nature.
That, plus the fact that AREN has been on the receiving end of more than one paid pump, and is being pumped even now, should definitely ring a bell for traders wishing to make some money out of trading AREN.
On that note, investors should be really really careful at this point, as experience teaches that paid pumps, no matter how expensive and vigorous, lose their potency over time. And when a pump takes a ticker as high as AREN has gone, only to leave it hanging, the resulting crash is, more often than not, devastating to say the least.