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.....
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.