Sage Gold Inc SGGDF

RE: Is SGX a BUY-SELL-HOLD today?

[Tibber]

Jerry:

I agree, Sage has some great properties and the potential is huge.

But that's where our agreement ends ...

Sage may very well find a property that they can bring to production.  BUT
- it will still take a few years before any gold is produced
- it will take millions more dollars to not only buy the property but to put infrastructure in place not to mention pre feasibilities and feasibility studies.
- Sage is a $12 million company right now.  It wil cost them at least that much to buy any deposit worth mining, now your shares have been devalued by half.  That's another 250 to 300 million shares just to purchase a property.

I have no doubt that if they find the perfect property they will have no problem getting money.  the problem is the existing shareholders will get bent over the proverbial wood pile and your ownership in the company will be dilluted by another 6 to 1 beyond the 5 to 1 we've already seen in the past 2 years.

In the end when Sage has consolidated and finished with their buying spree, it might be a good company to own provided they can keep their cash burn rate in control.  My guess is that will be 2 years down the road.  Thats a lot of time to have money tied up in nothing.  You'd be better off stuffing you mattress.

To quote Rick Rule (President of Global Resource Investments in San Diego), who has made his living and built his reputation on the natural resource sector ... "Most Juniors are doomed.  Ninety-Five percent of the sector has no value... Only 5% of the companies are investment worthy, the rest are paper business plans with little or no investment merit"