Pick one stock from DOW30 for your group to meet your client's needs. No more than 2 students in a group. See more detailed instructions.
Answer all 32 questions for the stock that you picked with a blue pen or in bold if you use a computer. You need to use/print the latest company report and the industry report for the stock that you picked. These reports will help you to answer these 32 questions.
THE VALUE LINE PROJECT
STEPS IN OBTAINING INFORMATION AND REPORTS
Objective: Recommend a client a common stock based on the value line methodology.
Your client
I. Describe your client: age, income, risk/return profile, etc. Use the knowledge you gained from chapter #s1 and 2 such as the investment policy, etc. Identify the client’s financial needs and her/his goal. ( Tab #1)
How to obtain and interpret the information
II. What are the Essential Steps to Picking a Stock Report?
Go to uhd.edu.
Click on QUICK LINKS and then
Click on LIBRARY.
Click on DATABASES located on left, click on ”V.”
Select the VALUE LINE INVESTMENT SURVEY database.
Click on "Investment Education."
Click on, “Tool Guide.”
Click on, “Value Line Investment Survey.
Click on, “How to Read a Value Line Report,” and print it. Alternatively, if you are having difficulties downloading this file, then you will see a handout,” Essential Steps To Picking A Stock” posted on the blackboard. Print it (Tab #2). No need to print both reports. Understand it. Use it to explain why your choice of the stock for your client.
III. How to obtain Names of the companies and the ticker symbols of the stocks
In google
Type Components of S& P 500 Index and Wiki”
Choose a company and note its ticker symbol
Make sure that you avoid everyone using the same company as others for analysis, by posting the name of the company you chose on the DISCUSSION BOARD in the blackboard. Note down the ticker symbol of company you selected (Tab # 3).
|
Caution Prior to accessing the value line data base, you may need to clear the cache images and files: (1) Click on your browser (2) Press SHIFT CTRL and DELETE keys at the same time. Make sure that ensuing screen shows that the choice of CACHE IMAGES & FILES is checked mark (3) Click on CLEAR BROWSING DATA After this you do not have to respond to any other questions. You may proceed to access the value line data base. |
IV. How to Obtain Company and Industry Reports
In the value line data base, Click on BROWSE RESEARCH. Type in the ticker symbol/company name on the top right.
You will see the company report. Note the shaded bars on the top right. Make sure you note the hidden information, which changes as you click from one shaded bar to the next. Using the “REPORTS” choice, which is located at the 5th shaded area from the top right and in the same shaded area as the “INDUSTRY RANK”. Print it (Tab # 4). Make sure you print the latest value line company report This is your company repor t. Understand it.
Scroll down and to your left you will see the INDUSTRY ANALYSIS/FORECAST
Click on the PDF file and print the one-page report. This is your industry report. Print it (Tab # 5). Understand it.
V. How to Understand the Company Report
I have posted on the blackboard, “The-in-Depth_Guide-to-Reading-a-Value_Line_Research_Report.
Print this report ( Tab # 6). Understand it.
This report includes a questionnaire with 32 questions for the company Johnson and Johnson (J&J). Using #s, it shows you where to find the answers to these questions on the report. At the end, you will notice the answers to these questions. You need to answer these questions using a blue pen for the company you selected for your client. Use the company report (from step IV) to answer these questions. Note that the J&J report from the value line was downloaded before the end of 2013. How do I know that when there is no date printed on it? See the financial column information for 2013 and 2014, and you will notice it is in bold, which indicates that it is a forecast. You will print the latest value line company report and accordingly you will change the dates on some of the questions. For instance, if you print the report in the year 2020, but before Dec. 31st, 2020, then the year 2020 and 20201 will be in bold in the company value line report, indicating the data for these two years are not actuals, but are forecasted data. And, you need to change/update the years in the questionnaire from 2012 to 2020, and 2013 to 2021, etc. Your answers to the questions will be as follows:
question # 1:
Johnson & Johnson's stock is traded on the _________ (1).
Your selected company' stock (write the name of the company) is traded on the ……..
Its ticker symbol is JNJ
Your selected company's ticker symbol is …
Answer all 32 questions. ( Tab # 7). Keep the question #s, the sequence and the question wording the same to answer questions for the company you selected.
Note: The use of a blue pen allows me to easily identify your answers.
VI. What is (North American) Standard industry classification (NASCI or SIC) codes and how to use it.
A. What is a SIC code?
In google search, type
“North American Standard industry classification – Wikipedia”
B. To get details of SIC codes, one of the useful websites is:
Search SIC Codes by Industry | NAICS Association
www.naics.com/ sic– codes-industry-drilldown/
You will see information shown below:
“Code, Industry Title, Count *. 01-09 · Agriculture, Forestry & Fishing, 654,781. 10- 14 · Mining … Current Number of US Businesses within that Primary SIC Code.”
C. Go to the website:
http://edgar.sec.gov/edgar/searchedgar/companysearch.html
Below the Company name box click on "More Options"
Type in the SIC code.
It will provide you with a list of companies in that industry. Find the SIC or the NAICS codes for your company/industry.
Select a relatively well-known company name/ticker symbol (you can always type the name of the company in yahoo finance and get the ticker symbol). Hint: You may use the company name/tike symbol that you have already selected for your client.
After obtaining the above information and understanding it, write 1- page report about the (NA)SIC codes ( Tab #8), which provides explanation to someone, who has no knowledge of it, but needs to use it in her/his job in the future, and includes the SIC/NAICS code for your company/industry. To that end, use the Wikipedia to get info for "SIC codes" or better NAICS codes.
Then write an explanation in your own words and provide it with an example of the codes of your company and the industry.
Alternatively, you can access the NAICS codes by clicking
Click on quick link within uhd.edu on Research Guides
Click on Financial Ratios
Click on Industry Classification Codes
Click on 2022 NAICS ( or choose the most recent year)
To understand, click on “11” Agriculture…
The Search Report explains the classification codes in detail
You need to explain it for the industry in which the company you selected for your client
Submission of the value line report
You need to submit a hard copy of the report in the class (see the due date in the syllabus/schedule). Do not make an electronic submission. The hard copy should be stapled or bound but without paper clips. You may need to staple your report in the left top in both front and back (as the report will include many pages) and submit all documents as one single stapled report. I do not carry a stapler with me. So please do not ask for a stapler.
Page 1: Project Name, Course name, Names of the all team members in alphabetical order of the last names.
Page 2: INDEX with two columns:
INDEX
|
Tab # |
Description |
|
1 |
Client Description |
|
2 |
“Essential Steps to Picking a Stock" Report |
|
3 |
Name of the company and the Ticker symbols of the company you selected, and why you selected it for you client. |
|
4 |
Company Report |
|
5 |
Industry Report |
|
6 |
“In-Depth Guide to Reading a Value line Research Report” |
|
7 |
The filled in (with a blue pen) questionnaire with 32 questions for the company you selected for your client |
|
8 |
Explanation of Standard Industry Classification (SIC or NASIC) codes. The “NA” refers to North America |
Page 3 onwards: Print out of all tabs 1 through 8 will follow: Each tab will have a title page followed by corresponding report.
,
THE VALUE LINE PROJECT
STEPS IN OBTAINING INFORMATION AND REPORTS
Objective: Recommend a client a common stock based on the value line methodology.
Your client
I. Describe your client: age, income, risk/return profile, etc. Use the knowledge you gained from chapter #s1 and 2 such as the investment policy, etc. Identify the client’s financial needs and her/his goal. ( Tab #1)
How to obtain and interpret the information
II. What are the Essential Steps to Picking a Stock Report?
Go to uhd.edu.
Click on QUICK LINKS and then
Click on LIBRARY.
Click on DATABASES located on left, click on ”V.”
Select the VALUE LINE INVESTMENT SURVEY database.
Click on "Investment Education."
Click on, “Tool Guide.”
Click on, “Value Line Investment Survey.
Click on, “How to Read a Value Line Report,” and print it. Alternatively, if you are having difficulties downloading this file, then you will see a handout,” Essential Steps To Picking A Stock” posted on the blackboard. Print it (Tab #2). No need to print both reports. Understand it. Use it to explain why your choice of the stock for your client.
III. How to obtain Names of the companies and the ticker symbols of the stocks
In google
Type Components of S& P 500 Index and Wiki”
Choose a company and note its ticker symbol
Make sure that you avoid everyone using the same company as others for analysis, by posting the name of the company you chose on the DISCUSSION BOARD in the blackboard. Note down the ticker symbol of company you selected (Tab # 3).
|
Caution Prior to accessing the value line data base, you may need to clear the cache images and files: (1) Click on your browser (2) Press SHIFT CTRL and DELETE keys at the same time. Make sure that ensuing screen shows that the choice of CACHE IMAGES & FILES is checked mark (3) Click on CLEAR BROWSING DATA After this you do not have to respond to any other questions. You may proceed to access the value line data base. |
IV. How to Obtain Company and Industry Reports
In the value line data base, Click on BROWSE RESEARCH. Type in the ticker symbol/company name on the top right.
You will see the company report. Note the shaded bars on the top right. Make sure you note the hidden information, which changes as you click from one shaded bar to the next. Using the “REPORTS” choice, which is located at the 5th shaded area from the top right and in the same shaded area as the “INDUSTRY RANK”. Print it (Tab # 4). Make sure you print the latest value line company report This is your company repor t. Understand it.
Scroll down and to your left you will see the INDUSTRY ANALYSIS/FORECAST
Click on the PDF file and print the one-page report. This is your industry report. Print it (Tab # 5). Understand it.
V. How to Understand the Company Report
I have posted on the blackboard, “The-in-Depth_Guide-to-Reading-a-Value_Line_Research_Report.
Print this report ( Tab # 6). Understand it.
This report includes a questionnaire with 32 questions for the company Johnson and Johnson (J&J). Using #s, it shows you where to find the answers to these questions on the report. At the end, you will notice the answers to these questions. You need to answer these questions using a blue pen for the company you selected for your client. Use the company report (from step IV) to answer these questions. Note that the J&J report from the value line was downloaded before the end of 2013. How do I know that when there is no date printed on it? See the financial column information for 2013 and 2014, and you will notice it is in bold, which indicates that it is a forecast. You will print the latest value line company report and accordingly you will change the dates on some of the questions. For instance, if you print the report in the year 2020, but before Dec. 31st, 2020, then the year 2020 and 20201 will be in bold in the company value line report, indicating the data for these two years are not actuals, but are forecasted data. And, you need to change/update the years in the questionnaire from 2012 to 2020, and 2013 to 2021, etc. Your answers to the questions will be as follows:
question # 1:
Johnson & Johnson's stock is traded on the _________ (1).
Your selected company' stock (write the name of the company) is traded on the ……..
Its ticker symbol is JNJ
Your selected company's ticker symbol is …
Answer all 32 questions. ( Tab # 7). Keep the question #s, the sequence and the question wording the same to answer questions for the company you selected.
Note: The use of a blue pen allows me to easily identify your answers.
VI. What is (North American) Standard industry classification (NASCI or SIC) codes and how to use it.
A. What is a SIC code?
In google search, type
“North American Standard industry classification – Wikipedia”
B. To get details of SIC codes, one of the useful websites is:
Search SIC Codes by Industry | NAICS Association
www.naics.com/ sic– codes-industry-drilldown/
You will see information shown below:
“Code, Industry Title, Count *. 01-09 · Agriculture, Forestry & Fishing, 654,781. 10- 14 · Mining … Current Number of US Businesses within that Primary SIC Code.”
C. Go to the website:
http://edgar.sec.gov/edgar/searchedgar/companysearch.html
Below the Company name box click on "More Options"
Type in the SIC code.
It will provide you with a list of companies in that industry. Find the SIC or the NAICS codes for your company/industry.
Select a relatively well-known company name/ticker symbol (you can always type the name of the company in yahoo finance and get the ticker symbol). Hint: You may use the company name/tike symbol that you have already selected for your client.
After obtaining the above information and understanding it, write 1- page report about the (NA)SIC codes ( Tab #8), which provides explanation to someone, who has no knowledge of it, but needs to use it in her/his job in the future, and includes the SIC/NAICS code for your company/industry. To that end, use the Wikipedia to get info for "SIC codes" or better NAICS codes.
Then write an explanation in your own words and provide it with an example of the codes of your company and the industry.
Alternatively, you can access the NAICS codes by clicking
Click on quick link within uhd.edu on Research Guides
Click on Financial Ratios
Click on Industry Classification Codes
Click on 2022 NAICS ( or choose the most recent year)
To understand, click on “11” Agriculture…
The Search Report explains the classification codes in detail
You need to explain it for the industry in which the company you selected for your client
Submission of the value line report
You need to submit a hard copy of the report in the class (see the due date in the syllabus/schedule). Do not make an electronic submission. The hard copy should be stapled or bound but without paper clips. You may need to staple your report in the left top in both front and back (as the report will include many pages) and submit all documents as one single stapled report. I do not carry a stapler with me. So please do not ask for a stapler.
Page 1: Project Name, Course name, Names of the all team members in alphabetical order of the last names.
Page 2: INDEX with two columns:
INDEX
|
Tab # |
Description |
|
1 |
Client Description |
|
2 |
“Essential Steps to Picking a Stock" Report |
|
3 |
Name of the company and the Ticker symbols of the company you selected, and why you selected it for you client. |
|
4 |
Company Report |
|
5 |
Industry Report |
|
6 |
“In-Depth Guide to Reading a Value line Research Report” |
|
7 |
The filled in (with a blue pen) questionnaire with 32 questions for the company you selected for your client |
|
8 |
Explanation of Standard Industry Classification (SIC or NASIC) codes. The “NA” refers to North America |
Page 3 onwards: Print out of all tabs 1 through 8 will follow: Each tab will have a title page followed by corresponding report.
,
Reading a Value Line Research Report
In-Depth Guide{
®
®
©2013, Value Line, Inc. All Rights Reserved. Value Line, the Value Line logo, the Value Line Investment Survey, Timeliness and Safety are trademarks or registered trademarks of Value Line Inc. and/or its affiliates in the United States and other countries. All other trademarks are the property of their respective owners. Factual material is obtained from sources believed to be reliable and any information contained herein is provided without warranties of any kind. VALUE LINE IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN OR ANY DAMAGES OR LOSSES ARISING FROM ANY USE OF THIS REPORT. This report is strictly for each subscriber’s own, non-commercial, internal use. No part of this report may be reproduced, resold, stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, service or product. Nothing herein should be construed as an offer to buy or sell funds or to give individual investment advice. All investors must read applicable prospectuses before investing. 1311015
The In-Depth Guide to Reading a Value Line
Research Report
The Value Line Investment Survey® is a unique source of financial information designed to help investors make in- formed investment decisions that fit their individual goals and levels of risk. It is: (1) a proven forecaster of relative stock performance over the next six to 12 months; (2) a source of interpretative analysis on approximately 1,700 individual stocks and approximately 100 industries; and (3) a source of historical information to help investors spot trends.
I: GETTING STARTED
As a subscriber, you will receive three parts of The Value Line Investment Survey each week. Part 1 is the Summary & Index, Part 2 is Selection & Opinion and Part 3 is Ratings & Reports. Below we will describe each section and discuss some of the ways to use them.
Part 1—Summary & Index
Start with the Summary & Index. The front cover contains a Table of Contents, three important market statistics, and a list of all the industries we follow in alphabetical order with their current industry rank shown next to the name of the industry. The page number is to the right. The market statistics are found in three boxes. The first box (a) has the median of estimated price/earnings ratios of all stocks with earnings covered in The Value Line Investment Survey (approximately 1,700). The second box (b) shows the median of estimated dividend yields (total dividends expected to be paid in the next 12 months divided by the
recent price) of all dividend-paying stocks in The Value Line Investment Survey. The third box (c) contains the estimated median price appreciation potential 3 to 5 years into the future for the approximately 1,700 stocks in The Value Line Investment Survey, based on Value Line’s hypothesized economic environment 3 to 5 years hence. By studying these statis- tics, a fairly good pic- ture emerges of how the universe of Value Line stocks—which com- prises approximately 90% of the market capitalization of all stocks traded in U.S. markets and is therefore quite representative of the stock market as a whole — is currently being evaluated.
Beginning on page 2, the Summary & Index also includes an alphabetical listing of all stocks in the publication with references to their location in Part 3, Ratings & Reports. If you are looking for a particular stock, look inside the Summary & Index section, which is updated each week to provide the most current data on all companies included in The Value Line Investment Survey.
Summary & Index
Value Line Guide 2 Reading a Research Report
To locate a report on an individual company, look for the page number just to the left of the company name. Then turn to that page in Part 3, Ratings & Reports, where the page number is shown in the right hand corner.
In the far left column of the Summary & Index is a number that refers to recent Supplementary Reports, if any, which are included on the back pages of Ratings & Reports If two stars (HH) appear in that column, it means that there is a Supplementary Report in the current Issue.
There are many columns in the Summary & Index with more information on each of the approximately 1,700 stocks we cover.
There is also a wealth of information in the stock screens toward the back of the Summary & Index, beginning on page 24.
These screens are a good place to start for anyone looking for investment ideas or help in forming a strategy. The screens are also useful for investors who want a list of stocks relevant to specific strategies they may have in mind.
Part 2—Selection & Opinion
Selection & Opinion (S&O) contains Value Line’s latest economic and stock marke