I was approached by someone with a book idea on Friday. First of all, I still have two books in the works but its hard to finish them with so much to do. But this new book idea is noteworthy.
Well, maybe not a book, how about an ebook or presentation on how the microcap scam is put together from start to finish including:
- “Interesting” accounting methods (How companies book revenues or income creatively)
- Where did this stock come from? (How stock is issued and why it doesn’t matter if it is free trading or restricted)
- What is involved in a big promotional effort and how it attracts actual retail buying (How the “buzz” is built and maintained by the “market managers”)
- The fear and greed factors (profiting instead of becoming a “bagholder”)
These are just a few of the points that could be covered. My favorite one above (Interesting Accounting) is how some companies show extraordinary income; creative accounting can book a lot of income to a company that is non-existent in the real world but shows up on the company’s filings as “income” or “revenue”.
What is a “market manager”? Any big promo has market managers involved. Basically these are people that manipulate the stock and create false volume and price movement to attract retail buyers.
Well, we will decide if this is “bookworthy” or not soon. If nothing else, I have a few presentations that deal with some of the items like the “market managers”…
