HOW TO INVEST IN COMMON STOCKS - Value Line

HOW TO INVEST IN COMMON STOCKS

The Guide to Using

THE VALUE LINE INVESTMENT SURVEY??

HOW TO INVEST IN COMMON STOCKS

The Complete Guide to Using

THE VALUE LINE INVESTMENT SURVEY

Value Line Publishing, Inc.

220 East 42nd Street, New York, NY 10017-5891 email Address: vlcr@ 1-800-634-3583

VALUE LINE PUBLICATIONS The Value Line Investment Survey? The Value Line Investment Survey--Small and Mid-Cap Edition?

The Value Line 600? The Value Line Mutual Fund Survey? The Value Line No-Load Fund Advisor?

The Value Line Options Survey? The Value Line Convertibles Survey? The Value Line Special Situations Service?

Value Line Select?

INQUIRIES

email Address: vlcr@

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1-800-634-3583

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? 2005, Value Line Publishing, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, noncommercial, internal use. No part of it may be reproduced, stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, service or product.

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TABLE OF CONTENTS

CHAPTER 1: GETTING STARTED

1

Part 1 - Summary & Index

1

Part 2 - Selection & Opinion

2

Part 3 - Ratings & Reports

3

CHAPTER 2: PLANNING AN INVESTMENT STRATEGY

4

Diversification

4

Creating a Diversified Portfolio

4

CHAPTER 3: VALUE LINE'S RANKING SYSTEMS

5

Timeliness TM

5

Safety TM

6

Technical TM

7

Industry TM

8

Record of Value Line Rankings for Timeliness

9-10

CHAPTER 4: UNDERSTANDING THE VALUE LINE PAGE

11

Value Line Ranks

11

Analyst's Commentary

12

Financial and Stock Price Projections

12

Annual Rates of Change

13

Historical Financial Data

14

CHAPTER 5: EXAMINING A VALUE LINE PAGE

IN MORE DETAIL

15

Putting Data in Perspective

15

The Price Chart

16

The "Cash Flow" Line

17

Historical Results and Estimates

17

Company Financial Data

18

Value Line Sample Page Definitions

20

Value Line Sample Stock Page

21

CHAPTER 6: THE VALUE LINE INDUSTRY REPORT

22

CHAPTER 7: ANSWERS TO FREQUENTLY ASKED QUESTIONS 24

GLOSSARY

30

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A Statement from Jean B. Buttner, Chairman and CEO

of Value Line Publishing, Inc.

Investors need to have unbiased and independent research! That is something Value Line subscribers have known for over 70 years. Value Line has no investment banking business with any company, including the approximately 1,700 companies our analysts follow. Unlike typical Wall Street brokerage firms, Value Line does not execute trades for its subscribers and therefore has no vested interest in whether its subscribers buy, sell or hold. Our staff of professional securities analysts may not own shares of a company that they are assigned to cover. Our subscribers receive only the highest quality of unbiased and independent research.

We utilize a time-proven disciplined system that ranks a company's relative performance over the next 12 months from 1, Highest, to 5, Lowest. Our record of performance speaks for itself: From April 16, 1965 through June 30, 2004, the Value Line stocks ranked No. 1 for Timeliness outperformed the Dow Jones Industrial Average and the Standard & Poor's 500 Indexes by more than 38 to 1.

If you are looking for unbiased, independent, and objective investment research and ideas, look no further than Value Line ? we answer only to you.

Very truly yours,

Jean B. Buttner, Chairman & CEO

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