Performance of Value Line's Recommendations: The Canadian Case

Abstract The present study examines the peformance of Canadian stocks surrounding changes in their Value Line timeliness rankings. These stocks offer a particularly interesting sample since most of the firms represented are in resource based industries. To the extent that commodity prices move randomly, predicting the future performance of resource companies is a challenging task. Moreover, differences in accounting rules, regulatory environments and so forth make the valuation of Canadian companies relatively difficult.