Value Line

What is it, how do I get it,

and how do I use it?

Stock Study Computer Group

San Diego Chapter of BetterInvesting

Katherine Partain

January 3, 2012

Value Line, Inc. - What Is It?

• Value Line, Inc. the company:

• Sector: Financial

• Industry: Asset Management

• Value Line, Inc. was founded in 1931

and is based in New York, New York.

• Value Line, Inc. is a subsidiary of

Arnold Bernhard & Co., Inc.

• Bills itself as the “Gold standard in

investment research” 2

Value Line, Inc. - What Is It?

• Business Summary: Value Line, Inc.

engages in two segments:

• The production of investment related

periodical publications

• The provision of investment

management services primarily in

the United States.

• Website: http://www.valueline.com

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Value Line – What Is It?

• Segment 1: Investment Periodicals,

Related Publications and Copyright Data,

which produces investment related retail

and institutional periodical publications:

• The Value Line Investment Survey

(large cap),

• The Value Line Investment Survey-

Small and Mid-Cap Edition,

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Value Line – What Is It?

• The Value Line 600, and

• The Value Line Fund Advisor Plus,

which provide statistical and text

coverage of various investment

securities, focusing on its statistical

rankings.

• Various niche newsletters

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Value Line – What Is It?

• The Value Line Investment

Survey (large cap)

• Part 1 – Summary & Index

• Part 2 – Selection & Opinion

• Part 3 – Ratings & Reports

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Value Line - What is it?

The Value Line Investment Survey

(large cap)

• Value Line is a evaluation tool

• Remember, this is a combination of facts

and the opinion of the Value Line investor

group

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Value Line – What Is It?

• Competitors

• Bloomberg L.P.

• The McGraw-Hill Companies, Inc.

• Morning Star

• Motley Fool

• Yahoo Finance

• Y-Charts Pro

• Many others

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Value Line

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Competitors - Bloomberg L.P.

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Competitors – The McGraw-

Hill Companies, Inc.

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Competitors – Morning Star

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Competitors - Motley Fool

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Competitors – YAHOO! Finance

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Competitors – YCHARTS PRO

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Value Line – How Do I Get It?

• The Value Line Investment

Survey (large cap)

• Part 1 – Summary & Index

• Part 2 – Selection & Opinion

• Part 3 – Ratings & Reports

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Value Line – How Do I Get It?

• Pro: “Free” acquisition

• 3 Binders at the Public Library

• Large Cap: parts 1 & 3

• Small Cap: parts 1 & 3

• Part 2 – Selection & Opinion separate

book

• Cons: 15¢ a page for copies

• Comes in pieces – once a week

• Reference only

• No historical access 18

Value Line – How Do I Get It?

• Limited parts are free on-line

• Go to: http://www.value.com

• Articles

• Reports

• Paid subscription

• Access to the online version of The

Value Line Investment Survey costs:

• 13 Week Trial - $65.00

• 1 Year - $538.00

• 2 Years - $897.00 19

Value Line – How Do I Get It?

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Value Line – How Do I Use It?

• How to, by Value Line

• Building an Investment Portfolio

• Timeliness

• Safety

• Technical

• Beta

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Value Line – How Do I Use It?

• The Value Line Investment Survey

(large cap)

• Handouts review

• Part 1 – Summary & Index

• Part 2 – Selection & Opinion

• Part 3 – Ratings & Reports

• Two Stocks –

• Proctor & Gamble

• O’Reilly 23

Value Line – How Do I Use It?

• Part 1 – Summary & Index

• Industries

• Stocks

• Conservative stocks

• Highest dividend yielding stocks

• Biggest “Free flow” cash generators

• Best performing of last 13 weeks

• Worst performing of last 13 weeks

• Widest discounts from book value 24

Value Line – How Do I Use It?

• Lowest P/Es

• Highest P/Es

• Highest annual total returns

• Highest 3-to-5 year dividend yield

• High returns earned on total capital

• Bargin basement stocks

• Untimely stocks

• Highest dividend yielding (non-utility

stocks)

• Highest growth stocks 25

Value Line – How Do I Use It?

• Part 2 – Selection & Opinion

• Weekly newsletter

• Economic and stock market

commentary

• Model portfolios

• Timely stocks with low risk

• Sector analysis

• Selected yields

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Value Line – How Do I Use It?

• Federal reserve data

• Tracking the economy

• Major insider transactions

• Market monitor

• Asset allocation model

• Industry price performance

• Changes in financial strength ratings

• Stock market averages

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Value Line – How Do I Use It?

• Part 3 – Ratings & Reports

• Examples: Four December 2011 issues

• Selected industries

• Selected stocks

• Supplementary reports

• Graphs

• Getting the Most from the Value Line Page

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Value Line – How Do I Use It?

• Two Stocks –

• Proctor & Gamble

• Ratings & Reports September 30, 2011 issue

• Free Value Line on-line report

• Yahoo Finance web page

• SSG

• O’Reilly

• Ratings & Reports September 30, 2011 issue

• Yahoo Finance web page

• SSG 29

Value Line – Conclusion

• Informative

• Detailed

• Expensive

• Tool

• Part fact, part opinion

• Worthwhile value - depends

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