%0 Journal Article %A Ying Zhang %A Ronald Zhao %T An Investment Strategy Based on Value Line’s Dual-Rank System %D 2011 %R 10.3905/joi.2011.20.4.040 %J The Journal of Investing %P 40-49 %V 20 %N 4 %X In this study, we document that the Value Line enigma originating from a timeliness single-sort portfolio no longer holds once trading costs are taken into account. In addition, we discover that safety ranks help explain cross-sectional stock returns within optimistic timeliness ranks. The information complementarity between timeliness and safety ranks makes it advisable to formulate a better investment strategy by constructing cross-ranking portfolios to yield significant abnormal returns allowing for conventional risk factors and transaction costs.TOPICS: Portfolio construction, equity portfolio management, technical analysis %U https://joi.pm-research.com/content/iijinvest/20/4/40.full.pdf