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If you are looking for unbiased, independent, and objective investment research and ideas,
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Very truly yours,
Ian Gendler
Executive Director, Value Line Research
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applicable prospectuses before investing. Value Line Arithmetic and Geometric indices calculated by Thomson Reuters. Information supplied by Thomson Reuters. 1311023
TM
Note: Any one Value Line stock rank is always relative to the
ranks of all other stocks in the Value Line universe of approximately 1,700 stocks.
TIMELINESS
The Value Line Timeliness Rank measures predicted relative
price performance of the approximately 1,700 stocks during
the next six to 12 months on an easy-to-understand scale from
1 (Highest) to 5 (Lowest). Components of the Timeliness Rank
include such items as the trend of relative earnings and prices,
and earnings surprises. All data are actual and known. A computer program combines these elements into a forecast of the
price change of each stock, relative to all of the approximately
1,700 stocks for the six to 12 months ahead. The Value Line
universe of 1,700 stocks accounts for approximately 90% of the
market capitalization of all stocks traded on the U.S. exchanges.
The second graph shows that if you bought all of our 1-ranked
stocks at the end of December of each year, held them until
the end of December of the next year, and repeated this process,
the portfolio would have risen 28,001%** since 1965. These are
records we believe nobody else has ever matched.
What you can see is that there have been spectacular results for
stocks in Groups 1 and 2. Stocks ranked 1 or 2 for Timeliness
Definitive Guide
SAFETY
A second and crucial investment criterion is the Safety rank
assigned by Value Line to each of the approximately 1,700
stocks. The Value Line Safety Rank measures the total risk of
a stock relative to the approximately 1,700 other stocks. It is
derived from a stocks Price Stability rank and from the Financial
Strength rating of a company, both shown in the lower right
hand corner of each page in Ratings & Reports. Safety ranks are
also given on a scale from 1 (Safest) to 5 (Riskiest) as follows:
Rank 1 (Highest): These stocks, as a group, are the safest,
most stable, and least risky investments relative to the Value
Line universe.
Rank 2 (Above Average): These stocks, as a group, are safer
and less risky than most.
Rank 3 (Average): These stocks, as a group, are of average risk
and safety.
Rank 4 (Below Average): These stocks, as a group, are riskier
and less safe than most.
Rank 5 (Lowest): These stocks, as a group, are the riskiest
and least safe.
Stocks with high Safety ranks are often associated with large,
financially sound companies, many of which regularly pay cash
dividends; these same companies also often have somewhat lessthan-average growth prospects because their primary markets
tend to be growng slowly or not at all. Stocks with low Safety
ranks are often associated with companies that are smaller and/
TECHNICAL
The Value Line Technical rank uses a proprietary formula to
predict short-term (three to six month) future price returns
relative to the Value Line universe. It is the result of an analysis
that relates price trends of different durations for a stock during
the past year to the relative price changes of the same stock over
Definitive Guide
INDUSTRY
Value Line also publishes Industry ranks, which show the
Timeliness of each industry. These ranks are updated weekly
and published on the front and inside pages of the Summary
& Index. They also appear at the top of each Industry Report.
The Industry Rank is calculated based on the Timelinessranks
of each of the stocks that have been assigned a Timelinessrank
in a particular industry.
Safety
Rank
4/14/72
9/11/74
6/17/81
8/11/82
8/26/87
12/4/87
7/13/90
11/2/90
4/22/98
10/08/98
5/22/01
9/21/01
4/16/02
10/9/02
5/5/066/13/06
10/9/071/22/08
6/5/083/9/09
Group 1
40.5%
10.5%
24.7%
19.0%
6.1%
11.5%
20.8%
-5.1%
-13.3%
-32.5%
Group 2
39.9
16.2
28.7
15.5
14.0
14.0
23.8
-5.9
-17.4
-42.0
Group 3
47.2
25.2
36.0
24.9
29.7
23.4
33.1
-11.7
-19.6
-53.2
Group 4
53.3
33.6
40.7
33.2
41.7
41.7
55.2
-17.1
-25.9
-61.1
Group 5
70.0
31.4
46.9
33.1
37.8
34.3
51.7
-19.5
-25.6
-67.0
Definitive Guide
Definitive Guide
Definitive Guide