Although Sagebrush Gold Ltd.(OTC:SAGE) is not a brand new enterprise, it was this year that an all-time high in the trading volume was hit; though a noticeable one, nothing really major for the penny stock world – 262k shares exchanged hands in a single session back in January. As it seems, this week could be the new all-time high. Expensive catalysts are put to use and it is yet to see what they could do to this stock. 
Currently, the stock price gravitates way above $1 per share. Friday session closed at $1.44 with a modest 36k shares exchanging hands. Today, however, things might be different. Third parties have stepped in. According to some posters, numerous promotions are hitting mailboxes. True or not, there is one for sure – one that got paid $80k for the service provided. A promotional newsletter, revealing positive facts about gold prices and tendencies in general, together with the potential of Sagebrush itself. Naturally, a prime place is set for the recently acquired exploration leases.
On the other hand, there are several things that the newsletter fails to mention. One – the modest trading activity of this stock. Prior to January, it was one of silence and zero trading activity. With the exception of a few sessions in the last 6 month, there hasn’t been serious demand for Sagebrush. What is more, most penny stocks who start way above $1 per share soon end up in far less pleasant price levels. It is yet to see what this case would be. Most importantly, the goals of the paying third parties should not go overlooked. If a company is willing to pay $80k, then it is possible that this company has a target to make way above $80k after that. It is doubtful that the third party is paying for Sagebrush exposure out of pure desire to help a young enterprise. [BANNER]
Besides, the 10-Q also says much, especially the one covering a period with an end date March, 31st this year. Most noticeable is the net loss figure in it – $1.2 million just for the first three months of the year. What is more, the company admits in its 10-Q that it does not have sufficient capital to fund its exploration program. It requires additional funding.
With the above in mind, a picture of uncertainty is painted for Sagebrush, but by no means a picture of failure. The fact of the matter is that gold prices are accumulating value and there are no signs that this tendency would disappear any time soon. On the other hand, Sagebrush has a field to work on and experienced staff to assure professional and straight-forward line of operations. So, this is a risky investment, but after all, more often than not greater risks make up for greater profits.
