The Value Line Special Situations Service
The Value Line Special Situations Service is designed for investors seeking investment ideas in the small-cap arena that span the range from aggressive to income oriented.
Value Line’s team of special situation analysts maintains a constant search for the very best small-cap companies, sifting through hundreds of annual and interim reports, prospectuses, SEC filings, and press releases in their quest. Each month, no matter what the general market climate, one aggressive stock and one conservative/income-oriented stock are recommended for purchase in a detailed report.
For the aggressive selection, the emphasis is on companies possessing the ability to generate exceptionally strong earnings growth during the coming three to five years, irrespective of economic conditions. Particular attention is paid to companies operating in high-growth, high-technology markets (the data communications, computer equipment and software, electronics, and health care industries are well represented). Using the same in-depth research, the conservative/income-oriented selection is made with a focus on an investment’s income potential, income sustainability, and, in some cases, turnaround potential. The companies highlighted here can range from out of favor, but financially strong companies in any industry, to more conservative offerings in the utilities industry.
As one might expect, there is above-average risk to our aggressive portfolio of "Special Situation" stocks. Not all of our recommendations have worked out as we originally had projected. In some cases, losses have resulted. But the potential rewards from this type of investing outweigh the risks, in our opinion, and we think past experience bears this judgment out. In order for subscribers to judge for themselves, however, we include our complete performance record in every issue. And, to help you balance out your portfolio, we have introduced a conservative/income-oriented portfolio.
Issues: 12 issues, published monthly.