Hi L, Re: Value Line's overall business.............................
It seems that Value Line, even though it was early into the "on-line' arena has had to be very protective of its materials. Several years ago, that meant the library subscriptions also had access to their 'on-line' version. However, maybe two years ago VL got suspicious that their library subscribers were allowing patrons to utilize the on-line version from remote locations (not library computers). At that time they segregated the library subscribers of the paper version from the electronic subscribers. The intent was to help fight the declining subscription base. The prices for paper and on-line changed at that time, too.
Further, VL has become much tougher relative to professional vs individual investor subscriptions. Again, there's quite a difference in subscription price between the two versions. Any form of SEC license is reason enough to get dropped from their individual investor base and then the person needs to pay up to keep a subscription as a professional.
I've donated $$$ to the local library so that they can have a subscription to VL that includes the "expanded edition." That way the paper product gets used by a far greater audience than just Yours Truly! I really liked the on-line version as it has a great screening feature for stocks. However, that is no longer available to me through the library. Weekly I walk to the library from my office and get the info I need from VL and Barron's. It gets me out of my office and the paper version is good enough for my needs. Also, I get to visit with other library users who are interested in investing. (mostly blue hairs, like me!)
So, where VL has improved the quality and accuracy of their subscriber base, they may have had the unintended consequence of limiting their overall # of subscribers. This may now have leveled out so that they can be more confident of their future. They face heavy competition from other "free" on-line sources, but VL's historical database is excellent as is their format.
Another source of income for VL were licenses they had with some mutual fund companies. They have maintained some of these, but lost a couple of others. First Trust offers a VL 100 Timely Stocks Index ETF for instance. They pay VL some sort of royalty for the use of their name, etc. Their product attempts to mimic the #1 Timeliness Ranked stocks that VL maintains. FVL is the symbol. PowerShares had a couple, also (PIV and PYH) but I believe those have now switched to tracking some other indices than VL's.
The big news was the separation of VL Investment Survey products from their other business of running and managing mutual funds based on their own products. That made substantial cuts in total revenues and income, but it seems as though they've weathered that storm. They're still profitable and still paying a dividends.
They're sailing a tighter ship now with fewer leaks. They're also sailing one with considerably less sail area than just two years ago. However, the storm clouds seem to have passed.
Best regards, Tom |
