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Value Line, Inc. Message Board

  • chris696932 chris696932 Nov 20, 2009 9:42 AM Flag

    VALU Stock should continue to devalue


    Business is contracting. Morale could hardly get worse. Brecher is completely useless, leave alone the question of how he succeeded Buttner. A takeover may be the only hope, but why would anybody acquire an increasingly irrelevant brand. Any meaningful due diligence by a prospective buyer would uncover horror after horror. A technology infrastructure that needs to be completely replaced. A salary structure that needs a substantial upgrade. A library, ooops, there is no library. And worst of all, a Timeliness Ranking System that works in "perfect reverse order."

    Presumably, a prospective buyer will want to talk to current and former employees of Value Line. Let the line form.....

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    • grounds_for_immediate_dismissal grounds_for_immediate_dismissal Nov 20, 2009 7:18 PM Flag

      The return on investment depends on the purchase price of VL stock.

      Over the last 20 years is stayed above $35 a share most of the time. Before the last special dividend was paid, the price went up to about $70.

      Anyone who paid $70 in 2004 and kept the shares is sad.

      There's too many problems affecting this company now -- and for years to come.

      The asset management business is going to see its lunch eaten by other asset management companies and ETFs.

      The publication side is contracting as Morningstar and S&P gut VL's business.

      Now is a good time for Buttner to buy the VL shares held by outsiders.

      But for her, the cheaper the better.

      What is the value of a company that is trending toward the end of its days?

      The next quarterly report will be one of the worst in the company's history. When management is spending all its time dickering with the SEC, results suffer.

    • Disguintled former employee...too bad you don't understand that you were meaningless and are pissed about that. That's the beauty of Value-Line...bad for employees but good for investors.

    • grounds_for_immediate_dismissal grounds_for_immediate_dismissal Nov 20, 2009 11:45 AM Flag

      The SEC action bars Buttner from running a public company AND from working for an asset management company.

      If that is the lay of the land, then the asset management side of the business will go on the block.

      What is it worth? Hard to say. However, the proceeds would flow back to the VL balance sheet and that money might become the source of the next "special dividend" payment made to all shareholders -- in other words, the one shareholder with 86% and the other shareholders who hold their 100-share round lots as novelties rather than investments.

      It gets interesting when you consider that the SEC plan says Buttner cannot serve as an officer of a public company.

      Then what? Take VL private.

      Is there a better time than now?

      Subscriptions are down to about 50,000 -- half of their peak level.

      Here's some bad news for management. Younger investors have never heard of VL. They know Morningstar, but not VL.

      VL is on its way to oblivion, a victim of internal blindness, worthless or nonexistent advertising and a bottomless capacity for technical incompetence.

      By the way, for you Warren Buffett fans, many of the stocks he holds were rated 5 by VL at the time he began to build positions.

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