America Resources Exploration Inc (OTCBB:AREN) is registering some strong trading sessions as paid pumps targeting company continues to hit the web every now and then. The stock is still being touted and it is not really that surprising. As of now, the only problem evident is that the promotional campaign is supporting the stock, ignoring all the visible red flags surrounding the company. There are reports and data that refute all the claims that the pumpers are making about the company.
The performance
As per the latest financial report, America Resources posted total cash and current assets of just $146,000 whereas the current liabilities stood at $64,000. It is one of those OTC traded companies that generates $0 in revenue. The net loss in reported period was $16,000. The figures clearly don’t looks of a prospective oil and gas production and exploration firm focused on the acquisition of assets. Also, the company has not provided any details of how the reported acquisitions have been completed?
The problems
In fact, the numbers looks like that of dubious OTC Marketplace company that deserves the Buyer Beware sign as stamped on company’s OTC Markets profile. Regardless of the sign and the fact that the massive paid pump campaign has been around for over a month now, there are some investors who strongly believe that they can make profits from AREN stock.
The caution
All these opportunistic traders should approach caution because as time goes by, the chances of America Resources Exploration Inc (OTCBB:AREN) stock being knocked down from its unjustified high perch, will keep on growing. After the recent up move on the chart, the company market cap stands at massive $116 million. As the past shows, after the end of pump campaign, the penny stock firms are poised for a correction to reach to their actual valuation.
