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Strategies & Market Trends : Value Line Investment Survey
VALU 36.80-1.5%Nov 4 3:50 PM EST

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To: KevRupert who started this subject7/4/2001 7:18:24 PM
From: JohnQInvestor  Read Replies (1) of 219
 
Hi, just a note about my experience with valueline. In the great year 2000, I had been reading the printed version and then had also been using the software.
I selected and bought only companies that were rated as large cap blue chip that had a ranking of 1-3-1.this meant they were tops for being timely,safety and technicals. names like txn,jdsu,qcom.

1-3-1 is the best ranking you could hope for and guess what. After the market crash those very same companies are now worth less than half what they were when valueline listed them as 1-3-1. only AFTER the market crash did they change their rankings on those companies. for instance some of those companies are now ranked 3-3-4.

what did this teach me? their rankings change in this case only after the stock prices tanked. It is my opinion that their ranking system simply does not have any practical value for me.
I now consider their ranking system 1-3-1 to be a LAGGING INDICATOR, showing you the past. I realize now that I only should have used valueline as a source of information, not to use their 1-3-1 ranking system as a buy signal for even great companies like txn,qcom,dell,aol etc. I now stick to my own TA. JohnQ
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