America Resources Exploration Inc (OTCBB:AREN) declined more than 15% on Tuesday’s trading session and then added another 6.58% drop in following trading session. After the two days decline, the stock is trading close to $0.710. The decline came at a light share volume of 790,290 compared to average monthly share volume of 1.80 million. America Resources stock has witnessed a lot of action in last few trading sessions, the stock bouncing up and down as bull and bear fight for dominance over its chart.

The pump

America Resources has lately been a target of massive paid promotional campaign that is still trying to push the stock up on the chart. With each day, the pump outfits are finding new and innovative ways to present the firm in a favorable way. In fact all promising news that they get are spread out of proportion.

The negative factors are twisted and shown in a positive light. It is evident from the tout titled as “America Resources hits nearly $100 million worth oil in Utah.” The other news was promoted with the title, America Resources stock down temporarily, giving an opportunity to buy. However, it is the way the paid pumps work.

The momentum

The investors should not forget that aftermath of pumps are disastrous, which is evident from the stock fall in last two trading sessions. The massed promotional campaigns tend to lose their effectiveness overtime, and it is usually the time when the company’s shortcomings reveals and affects the positive momentum.

As a matter of fact, America Resources Exploration Inc (OTCBB:AREN) has several red flags associated with it. The latest financial report can be stated as mediocre at best. Also, the company has failed to provide payment details of its latest acquisitions, which indicates that they are completed through issuing its shares of common stock. It comes as a warning for investors as dumping of these shares in free market will result in a sharp decline in stock price.