Educational Programming Video
The Value Line Investment Survey - Small and Mid-Cap Edition
Program 7: Comparing The Value Line Small and Mid-Cap Edition with the Value Line Investment Survey Standard Edition
In our last session we discussed why investors should subscribe to The Small and Mid-Cap Edition. Now we'll review the similarities and differences between The Small and Mid-Cap Edition and The Standard Edition.
Let's start by looking at the Ratings and Reports page of both publications. Both The Small and Mid-Cap and The Standard pages have the name of the company on the top of the page along with the ticker symbol and exchange, recent price, P/E ratio and relative P/E ratio and page number. In the top left are the Value Line ranks: Performance in The Small and Mid-Cap and Timeliness in The Standard, Technical and Safety along with a stock's' beta in both. The Performance and Timeliness ranks are generated using the same basic ranking model, but the 1,800 Small and Mid-Cap stocks are ranked among each other and the 1,700 Standard Edition stocks are ranked separately among each other. Both editions show financial strength, price stability, price growth persistence and earnings predictability. The Small and Mid-Cap Edition shows them to the left of the price chart and The Standard Edition at the bottom right. The price chart on both pages show a stock's monthly prices and volume. In The Small and Mid-Cap Edition, a twelve-month moving average line accompanies the stock graph while The Standard Edition has a line representing a multiple of cash flow. This is the original "Value-Line". On the left side of the price chart in both editions, a Legends box lists a company's stock splits.
Moving to the center of the page is the statistical array. In both editions, the top six lines show per share numbers while the bottom half of the array provides overall financials and ratios. The Standard Edition shows a company's balance sheet information to the left of the statistical array while The Small and Mid-Cap Edition's balance sheet information is in the middle of the bottom section of the page.
The big difference between The Standard and The Small and Mid-Cap Editions is that The Standard Edition's analysts provide quarterly and annual earnings estimates for each company while The Small and Mid-Cap provides consensus quarterly and annual earnings estimates as available. Also, analyst commentary is provided for each Standard Edition company while a company description and recent news is provided in The Small and Mid-Cap. This tradeoff is in direct response to our subscribers, who requested Small and Mid-Cap stock coverage at a reasonable cost.
Both editions have a weekly Summary & Index, which lists all stocks covered and includes the page number of the latest report and any news supplements, the current ranks, and the most recent quarterly information.
Following this section is a series of tables that can help investors search for investment candidates. Many subscribers look at timely stocks in timely industries to find new investments or justify holding current stocks. Others look at the timely stocks tables, listing all rank 1 and 2 stocks. Value-oriented investors look at tables such as Widest Discounts from Book Value, Bargain Basement Stocks, or Highest Yielding Non-Utility Stocks. In any case, both indexes offer subscribers many ways to search for suitable stocks or find stocks to avoid.
The Small and Mid-Cap Edition covers 1,800 stocks not followed in The Standard Edition. The Standard Edition has 1,700 stocks. About 75% of The Small and Mid-Cap Edition companies are listed on the NASDAQ and about 89% have market capitalizations of under $1 billion. About 75% of The Standard Edition companies trade on the New York Stock Exchange and the balance are listed on the American Exchange and NASDAQ. Subscribing to The Small and Mid-Cap would provide investors a good complement to The Standard Edition, or, as a standalone subscription, provide a good and somewhat less expensive entrée to the Value Line system of investing.
Finally, there is the success of the ranking model. The Value Line Timeliness ranks have been outperforming the Standard & Poors 500 index for the past 35 plus years. And now The Small and Mid-Cap Edition Performance ranks have been outperforming the Russell 2000 small-capitalization stock index for the past 5 plus years. This ends our comparison of The Standard Edition and The Small and Mid-Cap Edition.
Again, thank you for visiting us here at www.Valueline.com. Have a prosperous day.