"The Momentum Effect in stocks was discovered by Jegadeesh and Titman" - A finance pundit

How about some credit to Value Line which was using price momentum in its Ranking System all the way back in 1965, long before academia provided recognition? See Fischer Black's "Yes, Virginia, There is Hope - Tests of the Value Line Ranking System", which dates back to the early 1970s. I'm proud that I was there in the early days.

Sam Marx replies:

Mr. Eisenstadt,

I'm a Value Line Subscriber to its Stock Service and its Option/Convertible Service. They deserve credit for being early in using momentum and earning changes for stock prediction. Mark Hulbert still rates it highly. I understand W.E. Buffett recommends it for a data source.
However, I feel they have become somewhat stodgy lately and other services/newsletters have become very competitive offering data Value Line doesn't. MorningStar and Zacks for example.

I believe Value Line Stock services should expand its services to include earnings data, earnings surprises and stock's intrinsic value.
Their Option Service is loaded with information that I've found very useful. The man in charge, Dr. Larry Cavanagh, took over a simplistic service and made it truly professional. If you know how to use the data, it is the best buy in an option service. He also has done a fine job with the convertible service. I also commend you on your service and contributions in making the Value Line Stock Service the success it became.

Trivia question for you; Way back before Value Line started their convertible service/newsletter, when we both were young men, there was a trailblazer convertible bond newsletter. It was the only one I knew of or could find back then and I found it useful. Value Line went into competition with it and eventually put them out of business. I believe it was published in Long Island and as a hint the first letter of its name was "R".


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