Glossary of Investment Terms

Target Price Range—the projected average annual price range three to five years hence, based on Value Line earnings and P/E Ratio forecasts. The midpoint of the range is our estimate of the average annual price three to five years from now. The percentage appreciation potential and the estimated annual total return are computed from the projected low and high prices three to five years hence.

Technical Rank— Value Line's proprietary ranking of estimated stock price performance relative to the overall market in the next three to six months, based on a complex analysis of the stock's relative price performance during the prior 52 weeks. Unlike the Timeliness Rank, earnings are not a factor in the Technical Rank. Stocks ranked 1 (Highest) and 2 (Above Average) are likely to outpace the market during the next quarter or two. Those ranked 4 (Below Average) and 5 (Lowest) are not expected to outperform most stocks. Stocks ranked 3 (Average) will probably advance or decline with the market. The Technical Rank is purely a function of relative price action and is primarily a predictor of relative short-term price movements. (It may thus be particularly useful in trading short-term instruments such as stock options.) Investors should try to limit purchases to stocks with Technical Ranks of 1 (Highest) and 2 (Above Average). Under no circumstances, however, should the Technical Rank replace the Timeliness Rank as the primary tool in making an investment decision. Over the years, the Timeliness Rank has had a superior record.

Tender Offer—a way of taking over a company by offering shareholders a fixed (or variable) price for all outstanding stock. If enough shareholders decide to sell, the company can be taken over.

3- to 5-Year Projections—a potential average high and low stock prices Value Line forecasts for a period 3 to 5 years in the future.

Thrift—a financial institution deriving its funds primarily from consumer savings accounts.

Ticker Symbol—the abbreviation of the company's name by which a security is identified for purposes of trading. Also called Stock Symbol.

Time Deposits—interest-bearing deposits that a financial institution may require to remain on deposit for a specified period of time. Also called certificates of deposit.

Timeliness™ —the rank of a stock's probable relative market performance in the year ahead. It is derived via a computer program using as input the long-term price and earnings history, recent price and earnings momentum, and earnings surprise. All data are known and actual. Stocks ranked 1 (Highest) and 2 (Above Average) are likely to outpace the year-ahead market. Those ranked 4 (Below Average) and 5 (Lowest) are expected to underperform most stocks over the next 12 months. Stocks ranked 3 (Average) will probably advance or decline with the market in the year ahead. Investors should try to limit purchases to stocks ranked 1 (Highest) and 2 (Above Average) for Timeliness.

Timely Industries—see Industry Timeliness.

Timely Stocks—those ranked 1 or 2 for Timeliness. These are the stocks Value Line thinks will perform better than the Value Line universe as a whole in the coming six to 12 months.

Top Line—a reference to sales, which are usually shown on the top line of an income statement.

Total Capital—the sum of long-term debt, preferred stock at liquidation or redemption value, and common equity including intangibles.

Total Debt—the sum of long-term debt shown in the Capital Structure box and debt due displayed in the Current Position table.

Total Debt Due in 5 Years—the sum of bank notes due in 12 months (or less) and all long-term debt maturing within the next five years (including that portion of long-term debt due in the current operating year). See also Debt Due.

Total Distributions (Investment Companies)—total payments (capital gains plus dividends) made to shareholders of a fund.

Total Interest Coverage—pretax income plus total interest expense (including capitalized interest) divided by total interest expense.

Total Return (%)—the sum of the total appreciation (or depreciation) of a stock over a given period plus any cash dividends received during the same period divided by the price of the stock at the beginning of the period. Each Value Line page shows the total cumulative returns (if available) for the past 1, 3, and 5 years. Each page also denotes the total returns for the Value Line Arithmetic Index for the same periods for comparative purposes. (For more, see Value Line Arithmetic Composite Index)

Total Revenues (Securities Brokerage Industry)—gross revenue from all sources, including commissions, investment banking fees, principal transactions, and interest income (generally without deduction for interest expense) derived from funds loaned to customers' margin accounts plus interest on securities held in the company's account.

Trailing Price-Earnings (P/E) Ratio—the recent price divided by the sum of earnings per share reported during the last 12 months.

Translation Rate (Foreign Stocks)—the exchange rate at which financial data are converted into dollars. Historical data are translated at the exchange rate on the last day of the fiscal year. In the case of quarterly data for the current fiscal year and all estimates, the translation rate is the estimated exchange rate at fiscal year end.

Treasury Stock—common stock issued and then reacquired by the issuing firm. Such reacquisitions result in a reduction of stockholders' equity.