Penny Stock Trading Books: Review of Rampaging Bulls by Alexander Tadich
My boss gave me this book with the attached note: “all you need to know about finance”. The book is called Rampaging Bulls by Alexander Tadich and it turned out to be an interesting account of different types of promoters using various levels of guile to promote stocks to investors. The author categorizes the promoters under a few types with the Rampaging Bull being the most intelligent and cunning. This promoter usually suffers from a “malignant narcissistic personality disorder”.
Tadich, a Canadian businessman, believes that the world in general and stock markets in particular is full of Rampaging Bulls. While it is impossible to get rid of them, it is possible to understand them to take advantage for your own benefit. Hence the subtitle to the book: “outfox promoters at their own game on any penny stock”.
The book is entertaining as it tells the story of a few investors, brokers and Rampaging Bull, the promoter of a fictitious company, B. H. Beane International. It is outrageously funny in parts when Tadich describes this company that will enable farmers to use animal dung to fire a biogas digester and become energy self-sufficient. The Rampaging Bull maintains investor interest by manipulating media and news stories, stock performance and creating fake controversy.
This book offers insight into how the entire system of trading, broker research and stock promotion is set up to take money away from the unsuspecting investor. We saw this happen with gay abandon during the credit crisis, dot com bubble and Enron scandal in the past. The author offers a useful checklist to conduct independent due diligence of corporate organizations and promoters. This is very qualitative, which is generally lacking in numbers focused research reports. We also came across value investing rules, made popular by Benjamin Graham. These rules are as useful for senior companies as for junior stocks.