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Stocks V / Value Line, Inc.
|Subject: Re: To Subscribe or not||Date: 4/13/2003 12:37 PM|
|Author: 1000||Number: 8 of 18|
I think Value Line is definitely worth the subscription price. It provides me with a quick way to filter 1700 stocks. I do not put any emphasis on their numbered picks, however. Or I do not buy their number one picks.
I prefer to use it to create a list of potential candidates to invest in later. Their number one choices for timeliness are based mostly on momentum. And though, that may be a good strategy for those that like momentum stocks, I prefer IBD for finding momentum stocks.
However, Value line is number one for allowing me to quickly find a list of superior companies with superior business models with long track records of success. After forming a large list of candidates, I then wait for them to follow into my value range. You would be surprised how many great companies fall in price each year based on absolutely no bad news.
Then there are those that fall - too much - based on missed estimates. Investors tend to overreact on all bad news causing opportunities to buy for those that follow the companies.
After buying a few good companies for investment purposes, Value Line is again number one for helping you keep up with your investments by updating each quarter. If you subscribe, you can copy the reports quarterly on your companies through their online site. By keeping these quarterly updates you can find a list of obstacles that your company faces, competition concerns, future growth drivers and other challenges and opportunities.
The biggest problem with Value Line is that most people just do not know how to use the resource properly. It is not a stock picking publication. It is a guide to a universe of 1700 companies. Rather than try to use their number system to buy stocks based on a mechanical buying system. I think it is best to use the publication to expand your circle of competence; to learn about different business models.
Again, Value Line is number one in helping investors expand their circle of competence. It allows you to learn quickly about companies that are outside your realm of experience. Most people understand well only a few business model types. By expanding the number of business model types you understand, you will enhance your abilities to uncover future opportunities that you would have missed because you never heard of XYxYx company.
I cannot afford $600 a year. Fine buy it once. Create for yourself a large list of companies over numerous industry groups. In fact, I would choose the best positioned company in each industry group listed in Value Line. Copy the four quarterly reports on those and any others that you like. After your subscription runs out, go to the library each quarter and supplement your notebooks by copying those updates.
That is how I started out. It did not take long before I decided going to the library was a hassle that exceeded the subscription price. Not to mention making as many copies as I wanted was pretty expensive, though cheaper than the sub. But in time, I found Value Line to be far too indispensable to do without and look forward to it being delivered to my house each Friday.
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