78 The Business of Value Investingfi lters according to certain categories. Based on the category, Value
Line screens its own database and lists the 50 to 100 stocks that fall
under that classifi cation. So instead of initially going through all
the securities in the database, you can look at the areas that would
likely contain bargain investment opportunities. For instance, each
week Value Line produces a list of stocks under these categories,
plus many others:- Biggest “ Free Cash Flow ” Generator
- Highest Dividend Yielding Non Utility Stocks
- Lowest P/E ’ s
- Widest Discounts from Book Value
- Bargain Basement Stocks
Each category fi lters through the Value Line database and pro-
vides fertile hunting ground for potential investments. You get the
same detailed one - page Value Line report for each business. This is
an excellent resource base for initial investment ideas.
Unfortunately, Value Line ’ s data is proprietary and thus is not
free. An annual subscription to the print manuals will set you back
several hundred dollars a year. Unless you need the print manuals,
however, the online service is the way to go. You don ’ t have to wait
for your issue in the mail plus you get the added search and data
features. Most local libraries have both print and online subscrip-
tions to Value Line, so if you don ’ t want to shell out the money, you
can head over to your local library. Purchasing your own subscrip-
tion is defi nitely worth the investment.52 - Week Low Lists
Numerous sources can provide lists of stocks that are trading at
their lowest prices of the year. Again take these lists as wonderful
starting points, but also be careful of value traps. While the markets
are never 100 percent effi cient, today ’ s marketplace is much moreCH005.indd 78CH005.indd 78 9/2/09 11:08:06 AM9/2/09 11:08:06 AM