America Resources Exploration Inc. (OTCBB:AREN) Crashes In Spite OF Pumps
Another volley of paid pumps hit America Resources Exploration Inc. (OTCBB:ARENE), F/K/A (OTCBB:AREN) on Friday, but the ticker plummeted in spite of that, as it finally got slapped with an “E” for being delinquent in its filings.
Amusingly enough, the filing whose delay forced the change in ticker symbol hit the web just scant few hours after said change happened. The quarterly was filed at exactly 17:00 on Friday – well after the market session hand ended, and that’s probably a good thing, because the numbers that it gave did not look mediocre. No, far from it – they could easily be called downright horrible:
- Cash & Current Assets – $146 thousand
- Total current liabilities – $64 thousand
- NO REVENUES
- Net loss – $16 thousand
It turns out that the speculation we voiced in a previous article – that that the company has not really acquired any additional funding in the period that was covered by the report – has been correct. It seems unlikely that AREN has secured cash to spend in the three or so weeks since then, either.
This means that AREN‘s most recent questionable acquisitions have probably been made possible by issuances of large amounts of common stock. However, there’s no way to be sure if that is indeed true, since the company neglected to give the actual number of its common shares currently outstanding, instead opting to provide investors with the number that is two weeks old. Normally this would not be a big deal – and if we were talking about a regular OTC Markets company it would not have been a cause for alarm, but in light of AREN‘s other suspicious activities doing so really sticks out, and not in a good way.
Long story short – AREN‘s situation remains the same. The company’s financials are downright horrifying, it is still being pumped and as a result of its filing shenanigans there’s no real way to know how many shares of its common stock can hit the market at any given time due to its most recent acquisitions.
What’s baffling is the fact that even with all of these glaring red flags present, even after Friday’s crash, the company’s OTC Markets profile indicates that its market cap is still nearly $98 MILLION!
Investors are advised to be very, very careful when trading this stock, as the possibility of the market cutting AREN‘s ridiculously bloated market cap to size gets bigger and bigger as time goes by and the paid pump campaigns targeting it lose their potency.
