Customer Reviews

Making Dollars With Pennies: How The Small Investor Can Beat The Wizards On Wall Street, Second Edition

5 star:		(4)
4 star:		(4)
3 star:		(3)
2 star:		(1)
1 star:		(2)

 

 

This is possibly the worst written book that I could conceive of giving four stars. The reason I am rating "Making Dollars with Pennies" so highly is due to its content and because Max Bowser, who has been publishing his "Bowser Report" for over 25 years, is the real deal. Actually, the book is a quick and easy read, with a folksy demeanor. No high finance here. The book may be most helpful for people who have already been in the market for a little while (and perhaps been burned). The book is weak as a work of literature due to its poor organization and repetitiveness (stressing diversification among 12 to 18 stocks several times).

I believe that to succeed as an active investor in today's market, you need some kind of an "edge" or a niche. One way to obtain that is to focus on stocks trading under $3 per share, as Max does. Let the book serve as your trail guide into the jungle of smaller stocks. While Max rails against the studious ignorance among institutions of these supposedly risky shares, in practice he is quite careful about what he does. Although the selection of new issues is somewhat shrouded in mystery (with Bowser encouraging readers to subscribe to his monthly report in order to get new picks) he gives sufficient detail of his "Bowser Rating" system to uncover his thought process. Two significant ways Bowser reduces risk of investing among smaller stocks is by having a bias towards companies with strong balance sheets and a consistent record of past earnings - no development-stage, long shot concept stocks here.

One important caveat to keep in mind about Bowser's system is that it was honed during the mid-to-late 70s, when treading water was often difficult. To the extent that his methodology or conclusions have become stale or outdated, it may trace to ideas he tested at that time. Personally, I find the vintage comforting as our 2000-2010 market may possibly have more in common with the 70s than the 80s or 90s bull runs. Also please note that some of his suggestions, particularly for the mechanics of setting up and monitoring a portfolio, appear to have been made obsolete by the internet.

Aside from diversification, Bowser's possibly most important other safeguard is a formula for selling. First of all, whenever a stock's "Bowser Rating" falls below 8, the stock is sold, forcing an investor to sell companies with deteriorating fundamentals. Secondly, whenever a stock doubles, an investor is encouraged to sell half of his or her position, recouping cost. The remainder of a rising position is then held until it declines 25% from its most recent high.

How have Bowser's picks (from over 25 years of newsletters) done over time? As he says towards the end of the book [p. 157], 47% of the companies are still in business, 26% have been bought out and 27% are bankrupt. Over their holding periods, more recommended stocks have declined than have advanced. However, absent audited statistics, it appears that tiny minorities of winning stocks have more than made up for the losers. These big winners are mentioned in an "honor roll", and include firms such as Semtech, Smithfield Foods and Alpha Systems. The great hope of the investor in small stocks is not that the average pick will do well, but that a small number of them will be big winners - which is why diversification is so important.

"Making Dollars with Pennies" is only a beginning. It is no substitute for doing more work on your own.

I have read several investment guidance books where the only guidance offered is to buy the authors newsletter/consulting/mutual fund/etc. "Making Dollars with Pennies" at least explains the methodology of how the "Bowser Report" picks stocks before recommending that instead of spending your free time analyzing stocks you pay Max Bowser to do it for you.

The "Bowser" system is simple enought to understand and follow, with a list of "buy" indicators that can be learned from any financial page, and most refreshingly a system for when to sell. Although I have my reservations about whether the mechanical application of this system will make money, I have to give Mr. Bowser credit for explaining his system. If nothing else, it is a basis for further esploration.

I read this "great book" and it showed me the steps to buying and selling penny stocks... The author gives you a wide range of stocks to chose from in his newsletter. You can get a sample copy of the newsletter with the coupon in the back of the book. Get your money's worth here.

This book does provide a good analysis for the ambitious profit seeker in the small market, but I would also consider Dan Holtzclaw's "Penny Stocks: The Next American Gold Rush."-Dan provides great links and his market strategy is great as well!

R. Max Bowser's 1st book, Making Dollars with Pennies, is a great book for those individuals looking for a manual to introduce them to the stock market, its inner workings, and those vital parties involved in it. The terms of the stock market are clearly defined and the down-to-earth writing makes the reader feel like the author is speaking directly to the reader. The author very quickly develops a rapport with the reader. There is a certain humor written into every sentence as Mr. Bowser pokes a little fun at himself and occasionally at fellow investors that have in some way fouled themselves in the stock market game.

The main purpose of Making Dollars with Pennies is to introduce the reader to the program he uses to determine which stocks to purchase and when to sell. Some points that are very precisely followed are: Why an investor would be interested in "ministocks"; What the Bowser Game Plan is; Its evolution; and even how the Bowser Ratings are determined.

Mr. Bowser does a very good job in showing the reader exactly why he/she should consider "ministocks", even taking into account the relative volatile nature of the minipriced stocks. The author succeeds in convincing the reader that if he is patient, has a versatile portfolio, and follows Mr. Bowser's suggestions as to which stocks to buy, that the reader will do fairly well. Mr. Bowser backs up his statements by showing the reader a piece of his past in which he was not so successful in the stock market and how he learned how the stock market works. He explains how these findings of how the stock market works were developed into The Bowser Game Plan. He also explains in depth the mysterious Rating System and what it entails, raising the veil on how Mr. Bowser finds these little moneymakers.

As for the book, its layout and other mechanical factors of the book, I found the large print very easy on the eyes, making it a pleasant to read. The catchy titles of the chapters and subchapters encourage the reader to continue on with the next chapter. Plenty of charts help explain anything the reader may not understand. Perhaps the only thing that might be considered slightly off is that there doesn't seem to be any real order in which the chapters are presented. The first half of the book is devoted to explaining the stock market basics and the value of "ministocks" and the second half of the book is devoted to the explaining the Bowser Game Plan and how it is used. Otherwise, there really isn't any method to the chapters. However, it doesn't affect the readability and enjoyment of the book. It's kind of a go-with-the-flow type of reading.

All in all, R. Max Bowser's Making Dollars with Pennies is a greatly useful and enjoyable book that should be read by anyone considering entering the stock market. Mr. Bowser is very knowledgeable in the ways of the stock market and is obviously very willing to help those who are willing to learn and succeed in it. He very clearly demonstrates how his program works and how it should be used to make it work, and he does it in a charming and humorous way, making it easy for the reader to continue in what can be a very boring subject. This reader found the book very useful and enjoyable. A definite must-read for those entering into or interested in the stock market.

I was very dissapointed in this book. Although iot does give some information relevant to the title, it continually promotes the purchased of the Bowser newsletter.

I did not want to pay good money for an advertisment. There are better books out there that really address the subject matter.

The book is ok but I felt like the entire thing was a sales pitch for a news letter that author sends out. The author explains how he gets his ratings. It sounds like the system could work but if you are a go getter and you are trying to devise your own plan for investing rather than doing what someone else is telling you to do then this book probably isn't for you. If you want to invest but you dont feel you have the time to do your own research then get the book. The plan could probably help you out.

If you can consistenty beat Wall Street you will be headed for the record books. I do agree with the author that you can beat Wall Street but you need to put in allot of time and research. There are books like The guide for penny stock investing that can help. The key is to do your research and then to hold on to your stock as it moves up. Donny Lowy in his guide and Max in his book do supply the extra leverage to make it happen.

I gave up trying to read this book after coming across too many attempts within it to sell the author's newsletter. Other than that, I just didn't see anything noteworthy.

The stock-ranking strategy in the book bears strong resemblance to the chapter "Stock Selection for the Enterprising Investor" from the 1972 edition of "The Intelligent Investor". The key to successful investing in secondary stocks as advocated by Benjamin Graham was "...a group of issues, of at least average quality, meeting criteria of financial condition as well, purchasable at a low multiplier of current earnings and below asset value, should offer good promise of satisfactory investment results."

Benjamin Graham in his book listed 5 or 6 factors to successful stock-picking in secondary stocks such as: 1)Current Ratio; LT Debt 2)Earning's Stability and Growth over the last 5 years 3) Some current dividend paid 4) Price less than NTA 5) Current PE < 9 times

Contrast this to Bowser's ranking system which gives a point to such factors as Book Value, Current Dividend, Current Ratio, LT Debt, Earnings (last 5yr), Earnings (current).

I particularly want to mention Factor 4 "Highest Share Price (last 2 years)". This idea is definitely lifted from Benjamin Graham's 1975 Seminar entitled "Three Simple Methods Applied to Selection Common Stocks". Ben Graham died in 1976. The Bowser Report was officially published in 1979.

This review is intended to give credit to Benjamin Graham and readers who are interested in the source of wisdom should read the original "The Intelligent Investor" 1972 Edition.