Sagebrush Gold (SAGE) Now Trading as Pershing Gold (PGLC)

Penny Stocks to Watch: Junior mining penny stock Sagebrush Gold (OTCBB: SAGE) is going to begin trading under its new name and symbol Pershing Gold (OTCBB: PGLC.OB) as of Monday.  There are many strategies to investing in junior mining penny stocks. Following hype, momentum, potential or savvy investors. Penny stock traders rushed Harry Lappa and North Springs Resources (OTCBB: NSRS) into stardom based on nothing but some Letters of Intent and then suffered severely when the crash came. Junior mining stocks can be tricky but one strategy to play penny stocks that seems to have had some positive results has been following the footsteps of Billionaire Investors.

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Dr. Phillip Frost who made his fortune in pharmaceuticals like Ivax, Corp which was acquired by Teva Pharmaceutical Industries (NASDAQ: TEVA) and OPKO Health, Inc. (NYSE: OPK). So when the Forbes’ Billionaire list member, Dr. Phillip Frost, put his money into PGLC (SAGE), why didn’t the penny stock jump in price and volume and lead the list of the top 10 penny stocks each and every day since then?

PGLC (SAGE) has the “Motts” with nearly $30 million in Total assets; $8 million in Current assets, $21.76 million in Other assets. PGLC (SAGE) controls one of the largest pieces of property in Nevada surrounded by Barrick Gold, Newmont Mining, Allied Nevada and Paramount Gold & Silver. Not only should PGLC (SAGE) be a hot penny stock with a Billionaire Investor like Frost involved in it, but PGLC also snagged Stephen Alfers from Franco-Nevada Corp. (NYSE FNV) to be the junior mining company Chairman and CEO. Alfers served as the President and Chief of U.S. Operations of FNV from 2010 to 2011 and its V.P. (Legal) from 2007 to 2009. An interesting note is that Alfers replaces Barry Honig whose address listed on Form D for Schedule of Exempt Offerings is that of Dr. Philip Frost’s FGIT.

Albers and Frost; Frost and Albers; A $20 million acquisition surrounded by the biggest players in the Nevada gold mining industry and the tp gold mining companies in the world and the penny stock has gone down? WTF?

PGLC (SAGE) News Events and Effect on Stock:

Cause: May 24, 2011 – Dr. Phillip Frost on behalf of FGIT agrees to purchase 7 million shares of PGLC
Effect: 1,500 shares traded; PGLC (SAGE) closed at $1.15, down -5.74%

Cause: August 30, 2011PGLC formerly acquired Relief Mine Canyon
Effect: 21,744 shares traded; PGLC (SAGE) closed at $1.00, down -1.96%

Cause: October 5, 2011 – PGLC announces started Phase 1 drilling at Relief Canyon Gold Project
Effect: 412,961 shares traded; PGLC (SAGE) closed at $0.49, down -30.00%

Cause: October 13, 2011 – PGLC announces Dr. Phillip Frost’s FGIT $5 million investment in PGLC (SAGE)
Effect: 130,791 shares traded; PGLC (SAGE) closed at $0.50, down -0.99%

Cause: February 9, 2012PGLC appoints Stephen Albers as Chairman and CEO
Effect: 176,376 shares traded; PGLC (SAGE) closed at $0.49, up 0.02%

Cause: February 23, 2012 – Dr. Phillip Frost on behalf of FGIT invests an additional $600,000 into PGLC
Effect: 239,938 shares traded; PGLC (SAGE) closed at $0.49, up 6.30%

PGLC (SAGE) Stock Snap Shot:

Last: 0.51
Volume: 237,868
Last Volume: 10,000
Up Volume: 70,234
Neutral Volume: 111,964
Down Volume: 55,670
Trades: 44
Average Trade Size: 5,406

Market Cap: $66,200,678
52-Week Change3: -57.50%
52-Week High (Jun 9, 2011): 1.56
52-Week Low (Mar 9, 2012): 0.36
50-Day Moving Average: 0.47
200-Day Moving Average: 0.60
Avg Vol (3 month): 270,913
Avg Vol (10 day): 265,088
Shares Outstanding: 129.81M a/o Nov 14, 2011

PGLC (SAGE) Stock Price History:

Year Ended December 31, 2010:
Q1: High $0.32 – Low $0.22
Q2: High $0.32 – Low $0.32
Q3: High $0.58 – Low $0.32
Q4: High $2.00 – Low $0.58

Year Ended December 31, 2011:
Q1: High $3.00 – Low $0.60
Q2: High $1.56 – Low $0.80
Q3: High $1.30 – Low $0.78
Q4: High $1.00 – Low $0.43

In August, 2011, PGLC, Sagebrush Gold Ltd. (SAGE) at the time, through its wholly owned subsidiary, Gold Acquisition Corp. acquired the Relief Canyon Mine located in Pershing County for an aggregate purchase price consisting of: (i)  $12,000,000 cash and (ii)  $8,000,000 of senior secured convertible promissory notes issued to Platinum Long Term Growth LLC and Lakewood Group LLC. They bought the property from a Bankruptcy sale which, is quite obvious, was not appraised at the highest possible amount wouldn’t you think? I know guys who made millions in the housing market by buying bankruptcy auction houses and flipping them with a fresh coat of paint and some landscaping.

As far as PGLC (SAGE) goes, the company brought in revenue of $0 as per their most recent 10Q. What they did bring in was a couple of deep-pocketed investors and a top-notched CEO. In the 22 years of working in finance, I have never seen the stars align for one company like I am seeing for PGLC (SAGE). PGLC (SAGE) owns a $15 million gold processing plant and recently announced the addition of its 9,700 acre mining claims on the new Pershing Pass Property south of their Relief Canyon Mine to its assets.

Bottom Line: Add PGLC (SAGE) to your stock watch list. The stock is currently at $0.51, near its 52 week low. FGIT has Preferred Stock which is convertible into shares of Common Stock at a conversion price of $0.50 per share according to the 8K. Therefore, the current price is the same price as the Billionaire paid. NSRS had not even $1,000 in the bank and forward split the hell out of the stock so much you could see what color boxers Harry Lappa was wearing and all he did was take pictures and load a couple YouTube videos.

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