CMH and SRSL are rated as a major sells. Rated for moderate buys are GLM and ERICY. RDC is rated as a hold. IM, VALU, SSB,and HZFS are rated as major buys. This for the week of January 11-17. I told you in the previous message that VESTOR is available to brokers. The name under which the service is provided is COLLEAGUE which is billed as the "professional money manager version". The annual fee as of July, 1997 is $36,000. Your broker probably is familiar with COLLEAGUE. I would be interested in his perspective/comments.
If you subscribe to Compuserve, I strongly recommend the VESTOR service.
I shy away from full service brokers after too many losses. I follow VESTOR which is offered by Compuserve. Also most large brokerage houses subscribe to VESTOR. The annual fee to brokerages is $30,000 but with Compuserve each report is $10. I have been very pleased with the returns on VESTOR's recommendations. VESTOR recommended Value Line in October as a strong buy recommendation hence my investment.
I will run the stocks you suggested through VESTOR this weekend and let you know the results. Comparing notes hopefully improves probability of success. The stock that VESTOR recommended this week which caught my interest is SSB @ 10-1/8 which is projected to increase 82% in the next 12 months. Rankings and recommendations by VESTOR are based upon 28 different fundamental factors. Also, recommended from the previous week as a major buy is HZFS @ 12 to increase 84% in 12 months.
The scenarios you painted are innovative,substantive and well stated. I am impressed! Also, your humor is refreshing. I would be interested in your thoughts on some other stocks. Do you subscribe to an advisory service. Maybe we could communicate at a more isolated location. If you are interested I will give you an e:mail address. I make this offer with hesitation as I have avoided receiving other than non-solicited correspondence. In any event the offer stands. Comments??
Jim Long IIIby Jim Long IIIJan 3, 1998 7:32 PMFlag
I have been following this stock since obtaining a strong buy recommendation from VESTOR. I would be interested in any comments from anyone who is currently following this stock. Have any other stock advisory services made any particular recommendations relative to this stock?
Technically/logically I agree with your conclusions relative to the potential of Value Line being taken private and I hope that the offering price for the remaining outstanding stock will be much higher than the current P/E. However the unknowns and current pattern of patiently purchasing the majority of the stock at low P/Es raises doubts as to whether the current majority stock holder will make a substantial offer. Is there a track record of Arnold Bernhard (AB), the majority stockholder, with which we can develop some buy/sell strategies? What do you see as the incentive for AB to pay a substantial PE? Would a PE of 20 be an excessive expectation? I will be interested in yours or anyones response to these questions. Ideally, it would be great for AB to step up and state their long term intentions realative to its position and ownership of Value Line.