This item *is* magic. It has the exact same counter-ability as any other magic.
That's not how magic works, your don't buy like a 50% resistance to magic for your army, you buy static numbers of dice, and once you run out of that and scrolls, everything just gets through.
That's a great idea. If you get lucky enough to roll Second Sign of Amul, that would make a great combo.
Luck has nothing to do with it, Toad can get second sign every time. I am of course assuming that you are taking a toad because he's the best thing in any army ever. Anyone who doesn't take toad is shooting themselves in the foot or jacking to carnosaur (which I respect completely) Toad is kinda like a level 6 wizard most of the time, is your BSB if your smart, is not just the best general in our army, but the best general that warhammer HAS EVER HAD.
http://www.remanlegions.com/Math-Hammer.pdf
Gee, how much do other armies pay for a level 4 wizard... 250 points with no items? okay, toad is only a bit more then that bare.
How much do other armies pay for a BSB with a magic banner? About 125 most times right? toad does that for 50 and is tankier then most BSBs
How much do other armies pay for a leadership 10? You gotta cough up about 200 points, or 120 if your empire (which is also awesome). Toad is essentially leadership 10.6 (he's not quite good enough to take leadership to 11, only K.I.S.S. has leadership 11) Toad does this for..... FREE!!?!?!?
How much extra is it to make a unit immune to psych and stubborn when you join them, highborns can grant stubborn (but they are expensive and flimsy) A templar grand master can give immune to psych, but he's more expensive then a general (and a bit beatier) Toad does BOTH....FOR FREE?!?!?!!?
My god, toad displaces like 575+ points of command structure, and though he may not contribute any attacks like these other guys do he makes up for it by being hard to kill. (he gets a 4+ ward save, which costs about 45 points typically, and gets it ....FOR FREE!?!?!?!) He also cheats like a mofo in the second ranks, and you can't hide from his spells. Oh, and with a 50 points upgrade he knows 6 spells and generates maybe a bit more then 6 PD.
Toad will pretty much by himself chunk enough pew pew at the enemy that he can soak most of their DD by himself, one or two skink priests can then run amok and guess what.... USE THIS ITEM. (I also like using the blood statuette and some power stones all in the same turn, because it is most effective with magic to throw it all in one turn to get everything through. It's called an alpha strike, and it's a classic military maneuver, because wearing down their resistance over 6 turns is not as important as pewing slightly less all on turn one or two to weaken them right before they get to you.