Value Line

Value Line, Inc.
Company type	Public
Industry	Investment research, financial publishing
Founded	1931
Founder	Arnold Bernhard
Headquarters	New York City, United States
Products	The Value Line Investment Survey, mutual fund products
Website	www.valueline.com

Value Line, Inc. operates as a publicly listed firm specializing in investment research and financial publishing, with its main office situated in New York City. Established in 1931 by Arnold Bernhard, the company is widely recognized for producing The Value Line Investment Survey, a newsletter providing analysis on roughly 1,700 publicly traded equities.

History

Arnold Bernhard developed the "Value Line," an innovative graphical approach that overlays cash flow multiples onto stock price charts to facilitate company comparisons. In 1959, he introduced the investment survey along with the publication The Evaluation of Common Stocks.

In 1946, Bernhard brought on Samuel Eisenstadt, a statistics graduate from Baruch College, who revolutionized the methodology in 1965 by implementing ordinary least squares (OLS) regression analysis as a substitute for the initial visual technique. By employing mechanical calculators and data processors, they created the "Value Line Ranking System for Timeliness," a quantitative stock selection model that gained academic recognition from Fischer Black in his 1973 article in the Financial Analysts Journal. This ranking system became a distinctive asset and central offering of Value Line.

With Eisenstadt’s collaboration, Bernhard broadened the company’s portfolio to encompass additional publications and mutual fund products. The firm entered the public market in May 1983 through NASDAQ (), while the Bernhard family maintained an 80% ownership interest.

Arnold Bernhard died in December 1987. Soon after, his daughter Jean Buttner assumed the role of CEO, sustaining the company's strategic direction and growth momentum.

Fraud case

In November 2009, the SEC revealed a nearly two-decade-long fraud scheme involving more than $24 million perpetrated by Value Line against its mutual fund investors. The issue was initially reported in 2004 by John (Jack) Dempsey, who was then serving as portfolio manager and Chief Quantitative Strategist for the Value Line Fund (), adhering to the Sarbanes-Oxley Act's Code of Business Ethics.

Consequently, Value Line agreed to pay $43.7 million covering disgorgement, prejudgment interest, and civil penalties, with $34 million distributed back to harmed investors through a fair fund. CEO Jean Buttner and COO David Henigson were penalized $1 million and $250,000 respectively and were barred from serving as officers or directors or participating in industry associations. No criminal prosecutions followed.

External links

History

Fraud case

See also

External links