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Investment Survey® THE VALUE LINE

P A R T 2 Selection & Opinion

Published weekly by VALUE LINE PUBLISHING LLC 485 Lexington Avenue, New York, NY 10017-2630. © 2014 Value Line Publishing LLC. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN OR ANY DAMAGES OR LOSSES ARISING FROM ANY USE OF THE INFORMATION CONTAINED HEREIN. This publication is strictly for subscriber’s own, non-commercial, internal use. No par t of it may be reproduced, stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, service or product. Officers, directors, or employees of Value Line, Inc. and its affiliates and subsidiaries, and EULAV Asset Management, may own stocks that are featured in this publication. Nothing herein should be construed as an offer to buy or sell securities or to give individual investment advice. Value Line, the Value Line logo, The Value Line Investment Survey, Value Line Select, Timeliness and Safety are trademarks or registered trademarks of Value Line Inc. and/or its affiliates in the United States and other countries. All other trademarks are the proper ty of their respective owners.

See back cover for important disclosures.

M A R C H 2 1 , 2 0 1 4

PAGES 4941-4952

The Selection & Opinion Index appears on page 4982 (February 28, 2014).

Dear Subscribers,

As part of our ongoing efforts to keep The Value Line Investment Survey the most valuable investment resource for our subscribers, all updated Ranks are now being released on the Value Line Web Site at 8:00 A.M. Eastern Time on Mondays. You can access all the Ranks each week at www.valueline.com by entering your user name and password. We look forward to continuing to provide you with accurate and timely investment research. Thank you.

ECONOMIC AND STOCK MARKET COMMENTARY

The nation is closing out the first quar- ter in rather decent fashion, especial- ly given the brutally cold temperatures and heavy snows that have blanketed many areas, and led directly to transpor- tation delays, reduced demand, and high- er costs for both businesses and consumers. But even with these prob- lems, job growth still perked up last month, with 175,000 positions added— the biggest gain since last November— while new home sales, manufacturing, and retail sales all increased. Overall, and with the weather cooperating a bit more as spring rolls in, gross domestic product growth could still approach 2% in the now-ending quarter, which would be a credible performance given the weather- related issues.

We are hopeful, as we look out to the rest of the year. Our sense is that with the economy not falling apart over the win- ter, even with the problems caused by the weather, GDP growth may still push past 2% in the second quarter, and average 3%, or so, later on this year.

Our concerns now run deeper off shore, where the conflict in Ukraine is defying solution amid warnings of pos- sible sanctions and talk of troop move- ments. Although little new had evolved at press time, there’s no sign things will

In Three Parts: Part 1 is the Summary & Index. This is Part 2, Selection & Opinion. Part 3 is Ratings & Reports. Volume LXIX, Number 31.

In This Issue

The Value Line View

The Value Line View 4941

Model Portfolios: Recent Developments 4942

Major Institutional Stock Transactions 4945

Sector Analysis 4946

Equity Funds Average Performance 4948

Fixed-Income Funds Average Performance 4948

Selected Yields 4949

Federal Reserve Data 4949

Tracking the Economy 4950

Major Insider Transactions 4950

Market Monitor 4951

Value Line Asset Allocation Model 4951

Industry Price Performance 4951

Changes in Financial Strength Ratings 4951

Stock Market Averages 4952

end well. For Europe, the situation is more problematic given the greater proximity. Then, there are concerns of slowing growth in China, which is unnerving some investors.

Meanwhile, we are several weeks away from the start of first-quarter earnings season, and, for now, the picture is quite sketchy, as estimates are coming down— especially in the materials sector, where sensitivity to the weather and China is quite high. The outlook for the rest of 2014 is better, though, given the likelihood GDP growth will gradually strengthen.

The bulls are hanging in there. But not- withstanding this resilience, and the many new highs set this year, some profit taking is being seen from time to time. The brighter profit picture expected going for- ward, the likelihood the Federal Reserve will retain an easy monetary stance, and the lack of attractive investment alterna- tives in this low interest-rate environment should combine to keep most market pull- backs contained.

Conclusion: We remain upbeat as well on equities given the benign backdrop—at least onshore—at this time. Please refer to the inside back cover of Selection & Opinion for our statistically-based Asset Allocation Model’s current reading.

CLOSING STOCK MARKET AVERAGES AS OF PRESS TIME

%Change %Change 3/5/2014 3/12/2014 1 week 12 months

Dow Jones Industrial Average 16360.18 16340.08 -0.1% +13.1% Standard & Poor’s 500 1873.81 1868.20 -0.3% +20.3% N.Y. Stock Exchange Composite 10482.84 10418.99 -0.6% +15.0% NASDAQ Composite 4357.97 4323.33 -0.8% +33.3% NASDAQ 100 3727.18 3707.06 -0.5% +32.4% Amex Major Market Index 2566.28 2513.53 -2.1% +3.5% Value Line (Geometric) 500.18 496.47 -0.7% +22.9% Value Line (Arithmetic) 4513.90 4483.39 -0.7% +28.0% London (FT-SE 100) 6775.42 6620.90 -2.3% +1.7% Tokyo (Nikkei) 14897.63 14830.39 -0.5% +20.4% Russell 2000 1205.91 1191.37 -1.2% +26.7%

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© 2014 Value Line Publishing LLC. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, stored or transmitted in any printed, electronic or other for m, or used for generating or marketing any printed or electronic publication, service or product.

To subscribe call 1-800-833-0046.

PORTFOLIO I

Portfolio I continues to perform well. And although at this writing there are a couple of weeks left in the first quarter, our group looks like it should turn in a strong showing for the March period. Enthusiastic market support for our holdings in SkyWorks Solutions, South- west Airlines, The Greenbrier Cos., Arris Group, and VMware shares has underpinned the portfolio’s perfor- mance so far this year.

Discount retailer Dollar General recent- ly reported earnings for its January pe- riod that underscored its ability to manage well in a less-than-favorable op- erating environment. Nonetheless, the severe winter took a toll on its financial performance. In addition, the company’s forecast for f iscal 2014, though still pointing to good growth, was somewhat less vigorous than we had expected, re- flecting a range of factors including higher SG&A expenses. Meanwhile, DG shares have turned in a rather lack- luster showing since our purchase in late September. Adding it all up, we have decided to part company with the stock, replacing it with Old Dominion Freight. Our sense is the prospects for the less- than-truckload operator are more favor- able for the near term, particularly given the company’s recent positive comments on the growth in tonnage and the bene- fits being achieved from its investments in technology.

PORTFOLIO II

As we headed to press with this report, there was breaking news on both of Portfolio II’s pharmaceutical holdings. First, the good news: GlaxoSmithKline released positive results on two late- stage studies on treatments for asthma. In the first case, the drug, called mepoli- zumab, reduced the frequency of attacks in test patients with an especially severe form of the disease by 47%, compared with those taking a placebo. The second study showed that people affected with milder forms of asthma who took the drug every four weeks were able to re- duce their daily intake of an oral treat-

Model Portfolios: Recent Developments

ment. GlaxoSmithKline hopes to file for global regulatory approval for the drug later this year.

The discouraging news was that a fed- eral court invalidated a “reissue patent’’ for Pfizer’s painkiller drug Celebrex, which would have extended protection from generic copies from May 30, 2014 to December 2, 2015. PFE stock fell 1.4% on the news, but we have decided to hold for now. The company will im- mediately file an appeal. Too, just be- fore the court ruling came down, Pfizer announced that a major study of a new pneumonia vaccine successfully met primary and secondary endpoints.

There are no changes to Portfolio II this week.

PORTFOLIO III

As the first quarter winds down, Portfo- lio III is sitting on a year-to-date gain in the low single-digits. Part of this is due to resilience of the broader equity market in the face of Ukrainian unrest and wor- risome economic indicators from key emerging countries, most notably China. A handful of big winners continue to bolster the group, as well, including a couple of our newer additions, casino operator Wynn Resorts (up about 23% since the start of 2014) and medical de- vice maker Intuitive Surgical (13%). And our automotive plays, Magna Interna- tional and Tenneco, remain good relative performers. Though monthly auto sales have been weaker than expected lately (partially because of the harsh winter weather), they are still back at healthy, prerecession levels. This is helping the parts suppliers, along with geographic expansion and efficiency improvements in Europe and elsewhere.

Meanwhile, on a negative note, our commodity-oriented names, Allegheny Technologies, Mosaic, National Oilwell Varco, and U.S. Steel, continue to lag, perhaps reflecting heightened emerg- ing-market concerns. And we remain in the red on our Guess position. The ap- parel outfit has been hurt by weak show-

ings in Italy and France, and by unfavor- able promotional trends in North Amer- ica. We still like the company for the long haul, however, and believe that it represents an attractive opportunity for patient investors. What’s more, earnings growth ought to resume by next year. We are making no changes to Portfolio III this week.

PORTFOLIO IV

The U.S. stock market has spent most of March so far trading sideways. This is not surprising, given the large ad- vances logged in month of February. Notably, equity valuations, as mea- sured by price-to-earnings multiples, have likely become a bit elevated late- ly, especially in light of the somewhat lackluster fourth-quarter earnings sea- son. Dividend yields, on average, are also not terribly compelling.

Meanwhile, Portfolio IV, dedicated to current income, has been holding up reasonably well in the current environ- ment. Further, if past performance is any indication, we think our group of stocks should fare well in the event that the market pulls back, and investors turn defensive. Notably, our portfolio has several attributes that should provide a degree of stability. Specif ically, our holdings provide investors with a divi- dend yield of nearly 4%, on average, reasonable valuations, and generally low Beta Coefficients.

Lately, we have benef ited from strength in the basic materials area, with advances in Dow Chemical, and to a lesser extent DuPont. BT Group, an international holding, also continues to do well. In contrast, we have experi- enced some challenges in Mattel , AT&T, Ensco, and continued sluggish- ness in some of our utility issues. While we are monitoring these posi- tions, it should be noted that some of these issues among our highest yield- ers, and prospects still appear decent.

We are not making any alterations to Portfolio IV this week.

M A R C H 2 1 , 2 0 1 4 V A L U E L I N E S E L E C T I O N & O P I N I O N P A G E 4 9 4 3

© 2014 Value Line Publishing LLC. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, stored or transmitted in any printed, electronic or other for m, or used for generating or marketing any printed or electronic publication, service or product.

To subscribe call 1-800-833-0046.

PORTFOLIO I: STOCKS WITH ABOVE-AVERAGE YEAR-AHEAD PRICE POTENTIAL

(primarily suitable for more aggressive investors) Ratings & Reports Recent Time- Financial

Page Ticker Company Price liness Safety P/E Yield% Beta Strength Industry Name

759 ALL Allstate Corp. 55.61 1 2 10.2 2.0 1.00 A+ Insurance (Prop/Cas.) 946 ARRS Arris Group 28.59 1 3 14.0 Nil 1.10 B+ Telecom. Equipment 555 AVY Avery Dennison 50.58 1 3 17.0 2.4 1.15 A Chemical (Specialty)

2409 BHI Baker Hughes 62.35 2 3 18.8 1.0 1.30 A Oilfield Svcs/Equip. 948 BRCM Broadcom Corp. ‘A’ 30.43 2 3 13.6 1.6 1.15 B++ Telecom. Equipment

2580 CDNS Cadence Design Sys. 15.61 2 3 17.2 Nil 1.10 B+ Computer Software 2442 EMN Eastman Chemical 86.49 2 3 12.8 1.6 1.35 A Chemical (Diversified)

343 GBX Greenbrier (The) Cos. 45.22 1 4 17.7 Nil 2.10 B+ Railroad 345 NSC Norfolk Southern 95.75 2 2 15.1 2.3 1.10 A Railroad 324 ODFL Old Dominion Freight 56.24 2 3 21.5 Nil 1.05 B+ Trucking

2588 ORCL Oracle Corp. 38.90 1 1 13.1 1.2 1.00 A++ Computer Software 570 PX Praxair Inc. 131.59 2 2 20.6 2.0 0.95 A Chemical (Specialty)

2318 RCL Royal Caribbean 50.79 2 3 17.6 2.0 1.70 B+ Recreation 133 ST Sensata Technologies 41.16 2 3 16.9 Nil 1.20 B++ Precision Instrument

1378 SWKS Skyworks Solutions 36.23 2 3 19.1 Nil 1.25 B++ Semiconductor 312 LUV Southwest Airlines 23.78 1 3 19.0 0.7 1.10 B+ Air Transport

2019 SNCR Synchronoss Techn. 33.74 2 3 21.5 Nil 1.25 B+ Entertainment Tech 1343 VSH Vishay Intertechnology 14.35 2 3 11.1 1.7 1.40 B+ Electronics 1008 VC Visteon Corp. 83.84 1 3 17.4 Nil 1.45 B+ Auto Parts 2595 VMW VMware, Inc. 103.75 2 3 39.2 Nil 1.10 A Computer Software

To qualify for purchase in the above portfolio, a stock must have a Timeliness Rank of 1 or 2 and a Financial Strength Rating of at least B+. If a stock’s Timeliness rank falls to 3, or lower, it will be automatically removed. Stocks in the above portfolio are selected and monitored by Charles Clark, Associate Research Director.

PORTFOLIO II: STOCKS FOR INCOME AND POTENTIAL PRICE APPRECIATION

(primarily suitable for more conservative investors) Ratings & Reports Recent Time- Financial

Page Ticker Company Price liness Safety P/E Yield% Beta Strength Industry Name

540 GAS AGL Resources 47.35 3 1 16.4 4.1 0.80 A Natural Gas Utility 2509 CM.TO Can. Imperial Bank 95.80 1 2 11.3 4.1 0.80 A Bank 2399 COP ConocoPhillips 66.53 NR 1 8.8 4.1 NMF A++ Petroleum (Producing) 2415 ESV Ensco plc 50.98 1 3 7.5 5.9 1.25 B++ Oilfield Svcs/Equip. 1616 GSK GlaxoSmithKline ADR 55.65 3 1 85.6 4.3 0.75 A+ Drug 1361 INTC Intel Corp. 24.73 2 1 12.8 3.6 0.95 A++ Semiconductor 1164 IP Int’l Paper 47.25 2 3 19.6 3.0 1.50 B+ Paper/Forest Products 1950 KRFT Kraft Foods Group 55.42 NR 2 17.6 3.8 NMF A Retail/Wholesale Food 2586 MSFT Microsoft Corp. 38.02 3 1 13.9 2.9 0.85 A++ Computer Software 1975 TAP Molson Coors Brewing 58.03 3 2 14.1 2.6 0.75 B++ Beverage 1629 PFE Pfizer, Inc. 32.42 3 1 18.0 3.2 0.85 A++ Drug 2522 RY.TO Royal Bank of Canada 72.33 3 2 12.5 3.9 0.75 A Bank 1185 SON Sonoco Products 41.53 3 2 17.2 3.0 0.95 A Packaging & Container 1729 SNA Snap-on Inc. 112.60 3 2 17.8 1.6 1.15 A+ Machinery

516 TOT Total ADR 63.96 2 1 9.6 5.2 1.15 A++ Petroleum (Integrated) 775 TRV Travelers Cos. 83.58 3 1 9.6 2.4 0.75 A++ Insurance (Prop/Cas.) 346 UNP Union Pacific 185.77 3 2 17.8 2.0 1.05 A++ Railroad

1547 WPC W.P. Carey Inc. 63.21 NR 3 27.6 5.7 NMF B+ R.E.I.T. 421 WM Waste Management 41.26 3 2 18.0 3.6 0.85 A Environmental

1171 WY Weyerhaeuser Co. 29.60 3 3 22.8 3.0 1.10 B+ Paper/Forest Products

To qualify for purchase in the above portfolio, a stock must have a yield that is in the top half of the Value Line universe, a Timeliness Rank of at least 3 (unranked stocks may be selected occasionally), and a Safety Rank of 3 or better. If a stock’s Timeliness Rank falls below 3, that stock will be automatically removed. (Occasionally a stock will be unranked (NR), usually because of a short trading history or a major corporate reorganization.) Stocks are selected and monitored by Craig Sirois, Editorial Analyst.

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© 2014 Value Line Publishing LLC. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, stored or transmitted in any printed, electronic or other for m, or used for generating or marketing any printed or electronic publication, service or product.

To subscribe call 1-800-833-0046.

PORTFOLIO III: STOCKS WITH LONG-TERM PRICE GROWTH POTENTIAL

(primarily suitable for investors with a 3- to 5-year horizon) Ratings & 3- to 5-yr Reports Recent Time- Appreciation

Page Ticker Company Price liness Safety P/E Yield% Beta Potential Industry Name

1552 AFL Aflac Inc. 64.95 3 3 10.5 2.3 1.35 0 - 55% Insurance (Life) 1577 ATI Allegheny Techn. 33.45 4 3 NMF 2.2 1.60 20 - 80 Metals & Mining (Div.) 1398 AAPL Apple Inc. 536.09 3 1 12.1 2.3 0.90 75 - 115 Computers/Peripherals 2507 BK Bank of New York Mellon 33.22 2 3 13.7 1.8 1.15 80 - 155 Bank

970 CVS CVS Caremark Corp. 72.70 3 1 16.7 1.5 0.85 25 - 50 Pharmacy Services 2329 DIS Disney (Walt) 81.05 3 1 20.3 1.1 1.05 -5 - 10 Entertainment 2626 GOOG Google, Inc. 1199.99 3 1 29.4 Nil 0.95 5 - 30 Internet 2106 GES Guess Inc. 29.71 3 3 15.1 2.7 1.30 85 - 170 Apparel 2308 HOG Harley-Davidson 68.10 3 3 18.4 1.6 1.40 -5 - 40 Recreation 1920 HRL Hormel Foods 46.98 3 1 20.9 1.7 0.65 15 - 40 Food Processing

189 ISRG Intuitive Surgical 435.19 4 3 30.5 Nil 1.05 15 - 70 Med Supp Invasive 1000 MGA Magna Int’l ‘A’ 96.75 2 3 12.4 1.6 1.15 15 - 75 Auto Parts 1596 MOS Mosaic Company 48.81 3 3 17.1 2.5 1.15 55 - 125 Chemical (Basic) 2423 NOV National Oilwell Varco 78.08 3 3 12.5 1.3 1.35 40 - 110 Oilfield Svcs/Equip.

416 RSG Republic Services 34.01 3 3 16.9 3.2 0.90 20 - 75 Environmental 963 QCOM Qualcomm Inc. 76.71 3 1 15.0 1.9 0.85 25 - 50 Telecom. Equipment

1006 TEN Tenneco Inc. 61.54 1 4 14.4 Nil 2.15 15 - 85 Auto Parts 754 X U.S. Steel Corp. 24.78 2 3 NMF 0.8 1.75 20 - 80 Steel 815 UNH UnitedHealth Group 77.78 3 2 14.2 1.4 1.00 20 - 65 Medical Services

2367 WYNN Wynn Resorts 240.13 3 3 33.5 2.1 1.65 -15 - 25 Hotel/Gaming

To qualify for purchase in the above portfolio, a stock must have worthwhile appreciation potential. Among the factors considered for selection are a stock’s Timeliness and Safety Rank and its 3- to 5-year appreciation potential. (Occasionally a stock will be unranked (NR), usually because of a short trading history or a major corporate reorganization.) Stocks in the above portfolio are selected and monitored by Justin Hellman, Editorial Analyst.

PORTFOLIO IV: STOCKS WITH ABOVE-AVERAGE DIVIDEND YIELDS

(primarily suitable for investors interested in current income) Ratings &

Reports Recent Time- Financial Page Ticker Company Price liness Safety P/E Yield% Beta Strength Industry Name

922 T AT&T Inc. 32.23 2 1 12.3 5.7 0.75 A++ Telecom. Services 903 LNT Alliant Energy 53.31 3 2 15.7 3.8 0.80 A Electric Util. (Central)

1033 BT BT Group ADR 66.51 3 3 14.7 2.6 1.10 B++ Telecom. Utility 1990 BTI Brit. Amer Tobac. ADR 110.38 3 2 15.6 3.9 0.75 B++ Tobacco

141 ED Consol. Edison 55.12 3 1 14.7 4.6 0.65 A+ Electric Utility (East) 1593 DOW Dow Chemical 49.26 1 3 17.3 3.0 1.50 B++ Chemical (Basic) 1594 DD Du Pont 66.01 3 1 17.4 2.8 1.20 A++ Chemical (Basic) 2415 ESV Ensco plc 50.98 1 3 7.5 5.9 1.25 B++ Oilfield Svcs/Equip. 1361 INTC Intel Corp. 24.73 2 1 12.8 3.6 0.95 A++ Semiconductor 1164 IP Int’l Paper 47.25 2 3 19.6 3.0 1.50 B+ Paper/Forest Products 1194 KMB Kimberly-Clark 109.05 4 1 19.0 3.1 0.60 A++ Household Products 2313 MAT Mattel, Inc. 37.39 4 2 13.5 4.1 0.90 A Recreation

365 MCD McDonald’s Corp. 98.78 3 1 17.1 3.3 0.60 A++ Restaurant 1369 MCHP Microchip Technology 46.20 2 3 18.5 3.1 1.00 B++ Semiconductor 2613 PAYX Paychex, Inc. 42.31 4 1 24.0 3.5 0.90 A IT Services 1993 RAI Reynolds American 53.69 4 2 16.5 5.0 0.65 B+ Tobacco

513 RDSA Royal Dutch Shell ‘A’ 72.68 3 1 12.8 5.2 1.05 A++ Petroleum (Integrated) 1185 SON Sonoco Products 41.53 3 2 17.2 3.0 0.95 A Packaging & Container 152 SO Southern Co. 42.05 3 2 14.6 5.0 0.60 A Electric Utility (East) 421 WM Waste Management 41.26 3 2 18.0 3.6 0.85 A Environmental

To qualify for purchase in the above portfolio, a stock must have a yield that is at least 1% above the median for the Value Line universe, a Timeliness Rank of at least 3, and a Financial Strength Rating of at least B+. If a stock’s Timeliness Rank falls below 4, that stock will be automatically removed. Stocks are selected and monitored by Adam Rosner, Editorial Analyst.

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© 2014 Value Line Publishing LLC. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, stored or transmitted in any printed, electronic or other for m, or used for generating or marketing any printed or electronic publication, service or product.

To subscribe call 1-800-833-0046.

PURCHASES DURING THE FOURTH QUARTER(a)

Number of Ratings & Institutional % Increase Reports Ticker Time- Holders % Shs. In Shs.

Page Symbol Company liness Safety (12/31/13) Held (b) Held (c)

Major Institutional Stock Transactions

Investment managers that control accounts of over $100 million are re- quired to file quarterly reports with the Securities and Exchange Commission (SEC) detailing their holdings. The ac- companying tables present data on ma- jor purchases and sales by such investors during the fourth quarter of 2013.

Using information compiled by Vickers Stock Research Corp., we have listed the companies in descending order of the net change in the market value. (Only stocks covered in The Value Line Investment Survey appear here.) We also show the number of holders; the percentage of shares held; and the quarterly change in the percentage of shares outstanding owned by institutions at the end of December.

Investment managers had a taste for high technology and financial services businesses in the fourth quarter, reflect- ing their increased ownership of such stocks as Facebook, BlackRock, Inc., Microsoft, and Goldman Sachs. In addi- tion, General Motors and Barrick Gold were popular on the purchase side. Meanwhile, sales in the December pe- riod spanned a board range of compa- nies and industries, with the recurring theme being that a number of the sales were of stocks that are members of the Dow Jones Industrial Average.

Before following in these footsteps, we advise subscribers to consult company and supplementary reports before com- mitting funds.

(a) Listed in descending order of net change in mar- ket value of institutional holdings from 9/30/13 to 12/31/13. Excludes stocks not covered by The Value Line Investment Survey. Under SEC regulations, in- stitutional investors are allowed to delay disclosure of holdings in stocks that they are still accumulat- ing. Accordingly, the figures for institutional hold- ings reported here, which are based on SEC filings, may differ in some cases from actual data for the period shown. (b) As a percentage of shares outstand- ing on 12/31/13. (c) Change from 9/30/13 to 12/31/13 as a percentage of shares outstanding on 9/30/13. (d) Rank suspended due to merger/acquisi- tion or corporate restructuring. (e) Unranked due to short trading history.

Source: Vickers Stock Research Corp.

SALES DURING THE FOURTH QUARTER(a)

Number of Ratings & Institutional % Decrease Reports Ticker Time- Holders % Shs. In Shs.

Page Symbol Company liness Safety (12/31/13) Held (b) Held (c)

2625 FB Facebook Inc. (e) 3 930 64.7 8.1 504 XOM Exxon Mobil Corp. 3 1 1865 50.5 1.6 104 GM General Motors 2 3 898 74.3 9.1

2540 BLK BlackRock, Inc. 3 3 753 90.2 9.5 1398 AAPL Apple Inc. 3 1 2013 60.6 0.9 2626 GOOG Google, Inc. 3 1 1686 84.5 1.1 2586 MSFT Microsoft Corp. 3 1 1906 69.1 1.1 1197 PG Procter & Gamble 3 1 1748 60.3 1.6 2510 C Citigroup Inc. 2 3 1148 70.0 2.0 2515 JPM JPMorgan Chase 3 3 1691 73.7 1.4 583 CCI Crown Castle Int’l 3 3 446 93.9 12.1 935 TMUS T-Mobile US (e) 3 295 31.0 10.5 940 VZ Verizon Communic. 2 1 1508 58.3 1.9 222 JNJ Johnson & Johnson 4 1 1916 65.6 0.9

1787 GS Goldman Sachs 3 3 934 69.8 2.8 1028 LBTYA Liberty Global plc 4 3 383 88.9 10.4 2529 WFC Wells Fargo 3 3 1586 76.4 0.9 1968 KO Coca-Cola 4 1 1548 60.8 1.1 2570 V Visa Inc. 3 2 1115 89.2 1.8 2504 BAC Bank of America 2 3 1293 59.8 1.1 1568 ABX Barrick Gold 1 3 458 53.3 9.1 1609 BMY Bristol-Myers Squibb 5 1 1284 70.2 2.1 1749 GE Gen’l Electric 2 3 1797 54.5 0.7 1361 INTC Intel Corp. 2 1 1634 64.3 1.4

2527 TD.TO Toronto-Dominion 3 2 388 50.7 2.5 1408 IBM Int’l Business Mach. 3 1 1702 56.8 1.0 1629 PFE Pfizer, Inc. 3 1 1691 69.3 0.9 1528 GGP General Growth Prop. 2 3 327 83.9 8.1 505 HES Hess Corp. 3 3 627 73.9 5.3 950 CSCO Cisco Systems 1 1 1519 74.9 1.2 563 LYB LyondellBasell Inds. 1 3 612 71.3 2.6 720 NOC Northrop Grumman 3 1 607 86.3 4.9

2158 NKE NIKE, Inc. ‘B’ 4 1 944 82.8 2.1 1992 PM Philip Morris Int’l 3 2 1362 68.4 0.8 707 BA Boeing 4 2 1159 75.6 1.0

2565 MA MasterCard Inc. 3 2 949 79.2 1.0 734 ITW Illinois Tool Works 5 1 845 79.6 2.5

1411 NTAP NetApp, Inc. 2 3 487 89.2 6.4 1953 SWY Safeway Inc. (d) 3 429 84.7 11.6 775 TRV Travelers Cos. 3 1 833 82.2 3.0 922 T AT&T Inc. 2 1 1580 52.8 0.4 307 DAL Delta Air Lines 1 4 584 86.2 3.6

2405 PXD Pioneer Natural Res. 4 3 580 92.7 3.1 502 BP BP PLC ADR 2 3 853 12.8 0.5

1589 CF CF Industries 3 3 512 87.5 4.9 718 LMT Lockheed Martin 3 1 828 85.9 1.4

1342 DDD 3D Systems 4 3 335 48.1 7.8 2618 AMZN Amazon.com 5 3 993 67.5 0.3

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© 2014 Value Line Publishing LLC. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, stored or transmitted in any printed, electronic or other for m, or used for generating or marketing any printed or electronic publication, service or product.

To subscribe call 1-800-833-0046.

SECTOR INVESTING

To implement a “sector approach” to investing, do the following:

1. Select the three or four sectors that are ranked the most attractive.

2. Select the most attractive industries within the sectors. Our sector groups are shown on the facing page. Industry Timeliness ranks may be found in the tables on the front cover, or on page 24 of the Summary & Index.

3. Select one or two of the most attractive stocks within those industries. The table called “Timely Stocks in Timely Industries” on page 25 of the Summary & Index is a good starting place.

I nvestors who want to look at the “big picture” often start by examining the state of the economy and the stock

market in general, and then look, in or- der, at market sectors, at industries with- in a sector, and then at companies within a given industry.

This week, Value Line provides its quar- terly update on the 10 sectors we follow, which include nearly 100 industries, highlighting any notable changes. The sectors are based on the Timeliness ranks of the individual stocks within the sectors, and are positioned from 1 (Highest) to 10 (Lowest) in order of at- tractiveness. We also take a look at price-earnings ratios and dividend yields at the sector level this week.

Sector Rankings Update The Utilities sector has ascended to the top slot for Timeliness among the vari- ous sectors this week. An easing in bond yields from their recent highs and, to a lesser extent, cold winter weather, have supported the group lately. The weaker tone to economic reports in 2014 caused bond yields to pull back, supporting both bond prices—which move in the opposite direction of yields—and their equity counterparts, utilities stocks. Certain, but not all, utilities benef it from increased sales of electricity and gas when temperatures plunge, too.

Now ranked second for Timeliness, the Energy sector also benefited from the dip in the thermometer through higher prices for oil and natural gas. Prior to hearing of the polar vortex for the f irst time and experiencing the roughest win-

ter in a generation, domestic oil prices had been slipping. That was as supplies from North American shale fields out- paced demand. Meanwhile, regional natural gas prices were enduring an ex- tended slump. That scenario changed, especially for natural gas, when fuel in- ventories were drawn down, benefiting a number of energy-related companies and their share prices.

SECTOR RANKINGS

Ranks

Sector 3/14 12/13

Utilities 1 4 Energy 2 1 Telecommunications 3 2 Basic Materials 4 3 Financial 5 6 Consumer Cyclical 6 5 Industrial 7 7 Consumer Staples 8 9 Technology 9 8 Healthcare 10 10

That said, cer tain segments of the Energy sector are having a tough time. Coal continues to be a tough business and deepwater drilling is feeling the ef- fects of a slowdown as some of the ma- jor oil companies slow their spending plans just as new construction expands the offshore fleet of drilling rigs. As for refiners, their best results now depend on the maintenance of a healthy spread between domestic and international oil prices. Europe’s winter was compara- tively balmy, though, keeping a lid on international prices, as reflected in the Brent blend.

Price-Earnings Ratios Our next topic is price-earnings ratios, where there is much debate over wheth- er stocks are appropriately priced. Are stocks more expensive than in the past, when P/E ratios were typically less than the current Value Line Median of 18.6? If looked at in a vacuum, yes, but inter- est rates and inflation are historically low, making it fairly easy for investors to justify higher stock valuations in the absence of viable alternatives.

P/E Sector Ratio Technology 22.5 Healthcare 20.3 Basic Materials 19.5 Consumer Cyclical 19.2 Industrial 19.1 Telecommunications 18.6 Value Line Median 18.6 Consumer Staples 18.3 Utilities 16.8 Financial 15.4 Energy 14.9

In terms of the sectors, there are some instances of frothiness, notably in Technology, which leads the pack with a Price-Earnings ratio of 22.5. That is not as generous as was the case for the group during the Internet bubble of the Nineties, but some caution may be war- ranted with respect to social media stocks. High-flying issues that began trading in the past year or two are be- ing valued in large part on potential future earnings, where prospects are fuzzy. Those companies could turn out to be big money makers but, even if they do, their current valuations as- sume a lot will go right. In their favor, the new kids on the block often have a pile of cash from their IPOs to work with, affording them some time to work with. Valuations can remain extended for long periods of time, too, if a company’s business model catches on. Speaking of IPOs, a hot market for shares of companies going public, particularly in Healthcare and Biotech, has pushed valuations higher in that space.

Sector Analysis

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SECTOR GROUPS AND INDUSTRY DETAIL

BASIC MATERIALS Chemical (Basic)

Chemical (Diversified) Chemical (Specialty) Metal & Mining (Div.)

Paper & Forest Products Precious Metals

Steel

FINANCIAL Bank

Bank (Midwest) Financial Svcs (Div.)

Insurance (Life) Insurance (Prop/Casualty)

Public/Private Equity R.E.I.T.

Reinsurance Securities Brokerage

Thrift

TECHNOLOGY Computer & Peripherals

Computer Software E-Commerce

Internet IT Services

Semiconductor Semiconductor (Cap Equip)

ENERGY Coal

Natural Gas (Diversified) Oilfield Services/Equip Petroleum (Integrated) Petroleum (Producing)

Pipeline MLPs

INDUSTRIAL Aerospace/Defense

Air Transport Building Materials

Diversified Co. Electrical Equipment

Electronics Engineering & Construction

Environmental Funeral Services

Heavy Truck/Equip. Makers Human Resources Industrial Services

Information Services Machinery Maritime

Metal Fabricating Office Equip & Supplies Packaging & Container

Power Precision Instrument

Railroad Trucking

CONSUMER STAPLES Beverage

Food Processing Household Products

Retail/Wholesale Food Tobacco

Toiletries/Cosmetics

HEALTHCARE Biotechnology

Drug Health Info Services

Medical Services Medical Supplies (Invasive)

Medical Supplies (Non-Invasive) Pharmacy Services

UTILITIES Electric Utility (Central)

Electric Utility (East) Electric Utility (West) Natural Gas Utility

Oil/Gas Distribution Telecom Utility Water Utility

CONSUMER-CYCLICAL Advertising

Apparel Auto Parts

Automotive Cable TV

Educational Services Entertainment

Entertainment Technology Foreign Electron/Entertn

Furniture/Home Furnishings Homebuilding Hotel/Gaming

Newspaper Publishing Recreation Restaurant

Retail Automotive Retail Building Supply

Retail (Hard Lines) Retail (Soft Lines)

Retail Store Shoe

TELECOMMUNICATIONS Telecom Equipment

Telecom Services Wireless Networking

In terms of value, the Energy sector is the least expensive, both in relation to the other sectors, and compared to its long-term trading range.

Dividend Yields Our final table this week shows the vari- ous yields offered by each of the stock market’s ten sectors. From a pure yield perspective, there is not much to get ex- cited about outside the Utilities group, which has always been known for its good dividends. Good, steady payouts tend to reduce stock price volatility, as well. Of course, the tradeoff with high yields is often limited earnings growth, and that is certainly true in the case of companies that provide electricity, natu- ral gas, and water services. Utilities get a large part of their profit growth from occasional, if increasingly frequent, rate cases. Certain industries, such as Real Estate Investment Tr usts (REITs), Master Limited Partnerships (MLPs), and Business Development Companies (BDCs) pay out nearly all of their earn- ings in dividends, either voluntarily or by charter, as well.

Sector Yield (%) Utilities 3.9 Financial 2.4 Consumer Staples 2.3 Energy 2.2 Value Line Median 2.0 Basic Materials 2.0 Technology 2.0 Telecom 2.0 Healthcare 1.8 Consumer Cyclical 1.7 Industrial 1.5

Meanwhile, investors looking for 3- to 5- year total returns focus not just on yield, but the type of earnings and dividend growth that has the potential to boost a stock’s price over time. In terms of me- dian annual earnings growth out to 2017- 2019, the Consumer Cyclical (13.0%), Technology (12.5%), and Industrial (11.5%) sectors are the leaders. Clus- tered in the middle are Healthcare (10.5%), Consumer Staples (10.5%), Basic Materials (10.25%), Energy (10.0%), and Finance (10.0%). Bringing up the rear are Telecom (8.5%) and Utilities (6.0%). Companies achieving

healthy profits gains are clearly more likely to boost their dividends or, for that matter, repurchase shares.

Although it is not obvious, the median dividend yield on stocks is now higher, at 2.0%, than the 1.7% it was ten years ago. Back then, however, the yield on the 10-year Treasury note was a full percentage point higher than the current rate of around 2.75%. Granted, the up- ward move in stock yields is not excep- tional, but it clearly goes against the overall trend. One factor is that, since a decade earlier, the maturation of the Technology sector has led a number of old-line tech companies to emphasize dividends to a much greater degree. Importantly, too, the shift toward divi- dends has been supported by favorable tax treatment from 2003 onward, since made a permanent part of the tax code. Corporate America has responded in kind by recognizing investors pressing need for income.

Robert Mitkowski, Jr. Associate Research Director

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© 2014 Value Line Publishing LLC. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, stored or transmitted in any printed, electronic or other for m, or used for generating or marketing any printed or electronic publication, service or product.

To subscribe call 1-800-833-0046.

TOTAL REINVESTMENT* Percent Change through February, 2014

Five Year Year-to-Date Three Month Six Month One Year (Annualized)

Fixed-Income Funds Average Performance

Source: The Value Line Fund Advisor * The cumulative rate of investment growth, including the reinvestment of dividend income and capital gains distributions as of the ex-dividend date. The investment objective averages are arithmetic averages calculated on the basis of the total reinvested rates of return produced by all funds within each investment objective category.

Equity Funds Average Performance

TOTAL RETURN* Percent Change through February, 2014

Five Year Year-to-Date Three Month Six Month One Year (Annualized)

Source: The Value Line Fund Advisor * Dividends plus capital appreciation. Dividends are reinvested as of the ex-dividend date. The returns are arithmetic averages based on the performances of all funds within each category.

Performance Objective Aggressive Growth 1.3 2.8 12.5 21.4 19.2 Growth 2.0 4.2 15.3 25.6 21.6 Growth/Income 0.9 2.9 13.0 22.4 20.5 Income 0.7 2.0 10.4 16.8 18.3 Balanced 1.3 2.6 9.6 13.2 15.1

International European Equity 2.3 5.1 17.4 24.4 19.3 Foreign Equity — 1.1 11.9 11.3 17.2 Global Equity 1.7 3.6 14.4 20.8 20.0 Pacific Equity -1.3 -1.0 10.3 4.1 14.1

Sector Energy/Natural Res 1.8 3.7 9.3 11.4 14.1 Financial Services — 2.0 14.3 25.0 21.6 Health 11.9 12.7 27.2 50.7 25.5 Precious Metals 18.7 16.0 -2.3 -20.0 1.2 Real Estate 5.8 5.8 9.8 4.2 25.2 Technology 4.2 9.1 21.5 34.4 24.4 Utilities 3.5 5.8 13.2 18.0 17.7

Other Convertible 4.2 4.8 12.3 19.6 16.8 Flexible .4 2.3 7.8 9.9 14.1 Specialty 1.4 3.0 10.3 16.2 16.9 Small Company 1.6 3.4 16.1 29.3 25.0

S&P 500 1.0 3.5 15.1 25.4 23.0

U.S. Government and Agency Bond U.S. Gov’t 1.6 0.9 1.8 -1.6 3.6 GNMA 1.6 1.2 2.5 0.1 5.3

Corporate Bond High Quality 1.6 1.4 2.9 0.6 6.2 High Yield 2.0 2.4 5.4 6.0 12.9 International 1.3 1.2 3.7 -1.4 8.7

Municipal Bond California Tax Exempt 3.4 3.0 5.7 -0.9 5.6 New York State Tax Exempt 3.0 2.5 4.8 -2.8 4.9 National Tax Exempt 2.9 2.5 4.7 -1.4 5.2

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© 2014 Value Line Publishing LLC. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, stored or transmitted in any printed, electronic or other for m, or used for generating or marketing any printed or electronic publication, service or product.

To subscribe call 1-800-833-0046.

BANK RESERVES (Two-Week Period; in Millions, Not Seasonally Adjusted)

Recent Levels Average Levels Over the Last...

Excess Reserves Borrowed Reserves Net Free/Borrowed Reserves

MONEY SUPPLY (One-Week Period; in Billions, Seasonally Adjusted)

Recent Levels Ann’l Growth Rates Over the Last...

M1 (Currency+demand deposits) M2 (M1+savings+small time deposits)

Selected Yields

Federal Reserve Data

2/24/14 2/17/14 Change 3 Mos. 6 Mos. 12 Mos. 2730.1 2723.6 6.5 20.1% 14.0% 10.3%

11127.5 11135.7 -8.2 7.5% 6.6% 6.4%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

Current

Year-Ago

Mos. Years

Treasury Security Yield Curve

3 5 1 0 3 06 2 31

(3/12/14) (12/11/13) (3/13/13)

0.75 0.75 0.75 0.00-0.25 0.00-0.25 0.00-0.25

3.25 3.25 3.25 0.08 0.10 0.20 0.23 0.24 0.28

0.07 0.07 0.10 0.09 0.09 0.13 0.53 0.53 0.70

0.04 0.07 0.08 0.07 0.09 0.11 0.12 0.13 0.15 1.59 1.53 0.90 2.73 2.87 2.05 0.44 0.69 -0.55 3.67 3.88 3.25 3.92 4.18 3.48

(3/12/14) (12/11/13) (3/13/13)

1.93 2.35 1.88 2.01 2.14 2.41 1.83 1.97 1.86 1.93 2.12 2.12

3.81 4.23 3.10 4.56 4.80 4.15 4.66 4.69 4.15 4.80 5.17 4.48

2.45 2.65 1.92 1.60 1.81 1.48 0.63 0.65 0.63 2.75 2.86 1.97

5.89 6.40 5.34 6.50 6.54 5.95 5.46 5.46 5.46

4.41 4.70 3.86 5.27 5.30 4.31

0.12 0.17 0.20 0.67 0.80 0.81 1.20 1.31 0.85 2.06 2.15 1.85 2.88 2.92 2.14 3.73 3.70 2.94 4.26 4.38 3.20 5.73 5.91 4.87

4.98 5.21 4.24 5.05 5.29 4.37 5.51 5.67 4.74 5.33 5.31 4.49 4.76 4.85 4.47

3 Months Year Recent Ago Ago

3 Months Year Recent Ago Ago

TAXABLE Market Rates Discount Rate Federal Funds Prime Rate 30-day CP (A1/P1) 3-month LIBOR Bank CDs 6-month 1-year 5-year U.S. Treasury Securities 3-month 6-month 1-year 5-year 10-year 10-year (inflation-protected) 30-year 30-year Zero

Mortgage-Backed Securities GNMA 5.5% FHLMC 5.5% (Gold) FNMA 5.5% FNMA ARM Corporate Bonds Financial (10-year) A Industrial (25/30-year) A Utility (25/30-year) A Utility (25/30-year) Baa/BBB Foreign Bonds (10-Year) Canada Germany Japan United Kingdom Preferred Stocks Utility A Financial BBB Financial Adjustable A

TAX-EXEMPT Bond Buyer Indexes 20-Bond Index (GOs) 25-Bond Index (Revs) General Obligation Bonds (GOs) 1-year Aaa 1-year A 5-year Aaa 5-year A 10-year Aaa 10-year A 25/30-year Aaa 25/30-year A Revenue Bonds (Revs) (25/30-Year) Education AA Electric AA Housing AA Hospital AA Toll Road Aaa

3/5/14 2/19/14 Change 12 Wks. 26 Wks. 52 Wks. 2528153 2532547 -4394 2453256 2370310 2137559

101 102 -1 135 186 279 2528052 2532445 -4393 2453122 2370124 2137280

Source: Bloomberg Finance L.P.

Source: United States Federal Reserve Bank

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© 2014 Value Line Publishing LLC. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, stored or transmitted in any printed, electronic or other for m, or used for generating or marketing any printed or electronic publication, service or product.

To subscribe call 1-800-833-0046.

Major Insider Transactions are obtained from Vickers Stock Research Corporation.

Major Insider Transactions†

Tracking the Economy

PURCHASES

Latest Full-Page Timeliness Shares Shares Price Recent Report Rank Company Insider, Title Date Traded Held Range Price

SALES

Latest Full-Page Timeliness Shares Shares Price Recent Report Rank Company Insider, Title Date Traded Held Range Price

2200 2 Abercrombie & Fitch A.C. Martinez, Dir. 2/27/14 10,000 10,000 $39.35 40.13 1749 2 Gen’l Electric J.R. Immelt, Chair. 3/3/14 104,900 1,962,577 $25.19 25.90 392 2 Harsco Corp. F.N. Grasberger, CFO 3/5/14 25,000 25,000 $22.15 21.51 186 4 ICU Medical V. Jain, Chair. 3/5/14 30,000 30,000 $58.75 59.13 2220 3 L Brands S.D. Steinour, Dir. 2/28/14 10,000 10,000 $56.35 57.19 1181 2 Packaging Corp. T.S. Souleles, Dir. 3/3/14 6,000 10,000 $72.73 72.78 1143 - Tile Shop Hldgs. P.H. Kamin, Dir. 2/28/14-3/3/14 33,300 45,079 $15.29-$15.60 16.52

835 5 Jazz Pharmaceuticals plc S. Mulligan, Dir. 3/4/14 550,000 1,455,555 $156.25 151.46 2143 3 Macy’s Inc. T.J. Lundgren, Chair. 3/4/14 284,753 413,334 $57.90 58.94 592 4 SBA Communications J.A. Stoops, CEO 2/28/14 100,000 275,330 $95.59 94.99 2337 4 Scripps Networks E. Logan * 3/4/14 100,000 310,217 $81.53 80.11 2337 4 Scripps Networks M. Scripps * 3/4/14 100,000 519,054 $81.41 80.11 740 2 Trinity Inds. T.R. Wallace, Chair. 2/27/14 90,000 583,201 $70.66 72.36 815 3 UnitedHealth Group G. Boudreaux, V.P. 2/27/14-2/28/14 71,386 182,532 $76.04-$76.13 77.78

* Beneficial owner of more than 10% of common stock. † Includes only large transactions in U.S.-traded stocks; excludes shares held in the form of limited partnerships, excludes options & family trusts.

Merchandise Trade Deficit

40

80

1 20

1 60

2 00

Source: Bureau of the Census

Deficit

Exports

3-Month Average (In Billions)

2 009 201 0 2 0 11 20 1420 08 2 013201 2

Imports

Nonagricultural Employment

12 8

13 2

13 6

14 0

Source: Bureau of Labor Statistics

(In Millions - Seasonally Adjusted)

2 01 42 008 2 009 20 10 20 11 2 01 3201 2

Monthly Retail Sales

2 4 0

2 7 0

3 0 0

3 3 0

3 6 0

3 9 0

Source: Bureau of the Census 2 0 1 42 0 0 8 2 0 0 9 2 0 1 0 2 0 11

(In Billions of Dollars - Seasonally Adjusted)

20 1 32 0 1 2

Initial Unemployment Insurance Claims

2 5 0

3 0 0

3 5 0

4 0 0

4 5 0

5 0 0

5 5 0

6 0 0

6 5 0

7 0 0

Source: Department of Labor

Weekly Average in Thousands - Seasonally Adjusted

2009 2010 2 011 20142 0 08 201 32012

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To subscribe call 1-800-833-0046.

13-week 50-week Last market top Last market bottom Valuations and Yields 3/12 3/5 range range (5-21-2013) (3-9-2009)

Median price-earnings ratio of VL stocks 18.6 18.7 17.8 - 18.9 16.7 - 18.9 17.5 10.3 P/E (using 12-mo. est’d EPS) of DJ Industrials 15.2 15.1 14.5 - 15.8 13.5 - 15.8 14.0 17.3 Median dividend yield of VL stocks 2.0% 2.0% 1.9 - 2.1% 1.9 - 2.2% 2.1% 4.0% Div’d yld. (12-mo. est.) of DJ Industrials 2.3% 2.3% 2.3 - 2.4% 2.2 - 2.6% 2.5% 4.0% Prime Rate 3.3% 3.3% 3.3 - 3.3% 3.3 - 3.3% 3.3% 3.3% Fed Funds 0.1% 0.1% 0.1 - 0.1% 0.1 - 0.2% 0.1% 0.2% 91-day T-bill rate 0.0% 0.1% 0.0 - 0.1% 0.0 - 0.1% 0.0% 0.3% AAA Corporate bond yield 4.5% 4.4% 4.4 - 4.6% 3.7 - 4.7% 3.9% 5.5% 30-year Treasury bond yield 3.7% 3.7% 3.6 - 4.0% 2.9 - 4.0% 3.2% 3.7% Bond yield minus average earnings yield -0.9% -1.0% -1.2 - -0.8% -2.3 - -0.8% -1.8% -4.3%

Market Monitor

VALUE LINE ASSET ALLOCATION MODEL (Based only on economic and financial factors)

Current (last adjusted at market open 7/8/13) Previous (before 7/8/13)

Common Stocks 55%-65% 60%-70%

Cash and Treasury Issues 45%-35% 40%-30%

LAST SIX WEEKS ENDING 3/11/2014

7 Best Performing Industries

Newspaper +15.6%

Power +12.9%

Railroad +11.8%

Entertainment Tech +11.4%

Precious Metals +10.9%

Retail Store +9.8%

Semiconductor +9.2%

7 Worst Performing Industries

Pipeline MLPs -7.3%

Telecom. Services -6.2%

Coal -5.0%

Petroleum (Producing) -4.4%

Oil/Gas Distribution -3.6%

Investment Co.(Foreign) -3.1%

Cable TV -3.0%

The corresponding change in the Value Line Arithmetic Average* is +4.7%

CHANGES IN FINANCIAL STRENGTH RATINGS

Q3 2013Q2 2013 Q4 2013 Q1 2014Q1 2013 0%

5%

4%

3%

2%

1%

Q3 2013Q2 2013 Q4 2013 Q1 2014Q1 2013

130

136

Index: 12/30/1988 = 100 142

124

Q3 2013Q2 2013 Q4 2013 Q1 2014Q1 2013

800

0

400

200

600

INTEREST RATES Prime Rate

30-Year Treasury Bond x—x—x—x—x—x—x—x—x—x Federal Funds

VALUE LINE UNIVERSE Previous

Recent Week

VALUE LINE UNIVERSE New Highs

New Lows

Previous Recent Week

Prime Rate 3.3% 3.3% 30-Yr. Treasury 3.7% 3.7% Fed Funds 0.1% 0.1%

Advances 606 1356 Declines 1089 344 Issues Covered 1707 1708 Market Value ($ Trillion) 25.742 25.935

New Highs 199 450 New Lows 27 27

Ratings & Prior New Reports

Company Rating Rating Page

Market Sentiment

Short interest/avg. daily volume (5 weeks) 20.3 19.3 18.6 - 20.7 16.3 - 21.2 19.0 8.6 CBOE put volume/call volume .85 .84 .69 - .89 .67 - 1.31 .91 .93

INDUSTRY PRICE PERFORMANCE

Autoliv, Inc. B++ A 981

CMS Energy Corp. B+ B++ 906

F5 Networks B++ A 953

Previous Recent Week

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To subscribe call 1-800-833-0046.

Stock Market Averages VALUE LINE ESTIMATED P/E, YIELD, APPRECIATION POTENTIAL

VERSUS DOW JONES INDUSTRIALS (JANUARY 2, 1998 - MARCH 11, 2014)

3 0 0

3 5 0

4 0 0

4 5 0

5 0 0

5 5 0

6 0 0

Composite

Q4 2 013Q2 2 013 Q3 201 3 Q1 2 014Q1 2 013

24 0

28 0

32 0

36 0

40 0

44 0

48 0 Industrials

Q3 20 13Q 1 20 13 Q2 2 013 Q4 201 3 Q1 201 4

3. 6

4. 6

5. 6

6. 6

7. 6

8. 6 Rails

Q3 201 3Q1 20 13 Q2 2 013 Q4 2 013 Q1 20 14

2 20

2 50

2 80

3 10

3 40

Utilities

Q3 2013Q1 2013 Q2 2013 Q4 2013 Q1 2014

THE VALUE LINE GEOMETRIC AVERAGES

Composite Industrials Rails Utilities

THE DOW JONES AVERAGES

Composite Industrials Transportation Utilities Arithmetic* Composite

1677 stocks 1573 stocks 9 stocks 95 stocks

3/6/2014 500.88 399.89 8064.68 293.68 3/7/2014 501.01 400.05 8052.60 292.91

3/10/2014 499.91 399.12 8006.34 292.92 3/11/2014 495.80 395.78 7991.89 291.01 3/12/2014 496.47 396.13 8096.99 293.38

%Change last 4 weeks +4.0% +4.1% +9.7% +0.2%

65 stocks 30 stocks 20 stocks 15 stocks

5683.70 16421.89 7559.96 512.56 5699.58 16452.72 7592.36 514.20 5687.58 16418.68 7580.25 512.51 5666.36 16351.25 7560.07 510.21 5678.73 16340.08 7585.98 515.52

+2.8% +2.4% +4.4% +1.0%

1677 stocks

4520.93 4522.78 4513.39 4476.84 4483.39

+4.4%

WEEKLY VALUE LINE GEOMETRIC AVERAGES* (JANUARY 2, 2013 - MARCH 12, 2014)

Officers, directors, employees and affiliates of Value Line, Inc. (“VLI”), the parent company of Value Line Publishing LLC (“VLP”) and EULAV Asset Management (“EULAV”), may hold stocks that are reviewed or recommended in this publication. EULAV also manages investment companies and other accounts that use the rankings and recommendations in this publication as part of their investment strategies. These accounts, as well as the officers, directors, employees and affiliates of VLI, may dispose of a security notwithstanding the fact that The Value Line Investment Survey (the “Survey”) ranks the issuer favorably; conversely, such accounts or persons may purchase or hold a security that is poorly ranked by the Survey. Some of the investment companies managed by EULAV only hold securities with a specified minimum Timeliness Rank by the Survey and dispose of those positions when the Timeliness Rank declines or is suspended. Subscribers to the Survey and its related publications as well as some institutional customers of VLP will have access to all updated Ranks in the Survey at 8:00 AM each Monday. At the same time, portfolio managers for EULAV will receive reports providing Timeliness Ranking information. EULAV’s portfolio managers also may have access to publicly available information that may ultimately result in or influence a change in rankings or recommendations, such as earnings releases, changes in market value or disclosure of corporate transactions. The investment companies or accounts may trade upon such information prior to a change in ranking. While the rankings in the Survey are intended to be predictive of future relative performance of an issuer’s securities, the Survey is not intended to constitute a recommendation of any specific security. Any investment decision with respect to any issuer covered by the Survey should be made as part of a diversified portfolio of equity securities and in light of an investor’s particular investment objectives and circumstances. Value Line, Value Line logo, The Value Line Investment Survey, Timeliness are trademarks of Value Line, Inc. *Value Line Arithmetic & Geometric Indices calculated by Thomson Reuters. Information supplied by Thomson Reuters.

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60 40

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20 0

1 9 9 8 2 0 0 0 2 0 0 2 2 0 0 4 2 0 0 6 2 0 0 8 2 0 1 0 2 0 1 2 2 0 1 4

Dow Jones Industrials (Right Scale)

Estimated P/E (Left Scale)

Estimated Appreciation Potential (Left Scale)

Estimated Yield (Left Scale)

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