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Published:October 10th, 2011 12:21 EST
AER Energy Resources (AERN) Continues Bullish Run

AER Energy Resources (AERN) Continues Bullish Run

By Seth Davis

The latest alert from the pennypic network of penny stock newsletters, AER Energy Resources (AERN), surpassed all expectations last week. The stock reached $0.03 at the beginning of the pennypic alert on Monday, and finished Friday at $0.09 for a gain of 300%. Now, with record breaking volume and more promotional emails for AERN being sent, many traders are speculating that the price could go even higher.


The stock reached a technical breakout on Friday after rising above the previous high on Thursday of $0.086. From a purely technical standpoint, many would agree that the chart does look bullish. Penny stocks being promoted, however, tend to be more volatile and more risky to invest in than regular stocks trading on the NYSE and NASDAQ exchanges, so readers are advised to conduct their own due diligence.


AERN is engaged in the development and commercialization of zinc-air batteries. While the premise of the business may sound perfectly legitimate, AERN does not have any recent financial statements available, and it`s questionable whether the company is in a healthy financial position. Their most recent press release states that the company has a "$1.875 Billion USD Agreement for a Joint Venture Oil and Gas Project", which is rather misleading. The $1,875,000,000 figure is based on potential revenue only, based on extremely optimistic numbers and over a long period of time.


It`s worth noting that the majority of pennypic alerts tend to rise considerably upon being announced, but crash spectacularly in the days or weeks following the announcement. A read over the disclaimer of these promotional newsletters recommending AERN reveals that $1,300,000 was spent on the promotional campaign, and that the third party paying for the promotion most likely holds shares of AERN that they intend to sell into the buying created. This must be a definite red flag for any potential investors. When playing stocks such as these, it is important to cut any losses quickly and have an understanding of how penny stocks are manipulated.


For news and updates on AERN, readers are advised to join the Penny Stock Videos ( newsletter. A full analysis video is currently being created for AERN which all existing and potential investors are advised to watch.