Part 2: Using Value-Line Case Study-Balchem (BCPC)

Reach of Federal Power is Questioned (Obama Care)

It’s “the old Jack Benny thing,” Justice Scalia said, invoking the joke where a robber holds up the famously stingy comedian and says, “‘Your money or your life,’ and, you know, he says, ‘I’m thinking, I’m thinking,'” Justice Scalia said. “It’s funny, because there is no choice.”

BalChem (BCPC)

Initial post on using Value-Line:

Then I posed a case study of a Value-Line with the market prices and name removed here:

The company in the case study is Balchem:

Take a few minutes to review the Value-Line to determine if your perceptions of your initial analysis changed. Ask if the company is worth studying further. There is no correct answer; it depends upon your investment philosophy.

Part 3 will be my discussion of Balchem using the Value-Line posted tonight or early tomorrow. In the spirit of full disclosure, I have owned Balchem (BCPC) back in 1996 – 1999 (before the 10x rise in price!) so take my words with an antidote. I bought on the basis of book value, made money, but I had no clue back then of what was a good or bad business. I was buying on the basis of cheap metrics. You can make money but still make a mistake. Ignorance was my blinder.

Below are a few more Value-Lines which I will discuss in the next post (part 3)




Imagine sorting through a huge pile of mail. You need to discard companies that are of no interest. Value-Line publishes updates on each company about 4 times a year, so you will become more adept sorting companies the more times you review Value-Line. At first, the process will be time-consuming, but you will learn more about companies, valuations and market perceptions.

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