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<SEC-DOCUMENT>0000893838-07-000060.txt : 20070514
<SEC-HEADER>0000893838-07-000060.hdr.sgml : 20070514
<ACCEPTANCE-DATETIME>20070316162206
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000893838-07-000060
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20070316

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			VALUE LINE INC
		CENTRAL INDEX KEY:			0000717720
		STANDARD INDUSTRIAL CLASSIFICATION:	INVESTMENT ADVICE [6282]
		IRS NUMBER:				133139843
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			0430

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		220 E 42ND ST
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017
		BUSINESS PHONE:		2129071500
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<A NAME=A001></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Chadbourne &amp; Parke
LLP <BR>
30 Rockefeller Plaza<BR>

New York, New York 10112 <BR>

Tel: (212) 408-5100 <BR>
Fax: (212) 541-5369 <BR>
Direct Tel: (212)408-5422<BR>
</FONT></P>


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<A NAME=A007></A>
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>March 16, 2007 </FONT></P>

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<A NAME=A008></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Securities and Exchange
Commission <BR>Division of Corporation Finance <BR>Washington, D.C. 20549-7010 </FONT></P>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Value Line, Inc. Form 10-K for the Fiscal Year Ended April 30, 2006
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;<U>Filed July 28, 2006; File No. 0-11306
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</U>

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<A NAME=A010></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ladies and Gentlemen: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
behalf of Value Line, Inc. (&#147;Value Line&#148;), we submit this response to the
staff&#146;s comments on the Form 10-K for the Fiscal Year Ended April 30, 2006 of Value
Line, which comments were set forth in the staff&#146;s letter dated February 14, 2007.
Set forth below are the staff&#146;s comments (in italics) followed by the responses of
Value Line. </FONT></P>

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<A NAME=A011></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 7. Management
Discussion and Analysis of Financial Condition and Results of Operations, page 16 </FONT></P>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>1.</I> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>In future filings, please substantially revise and expand your discussion
               regarding your results of operations and financial </I> <I>condition for all
               periods to include the following:</I> </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>An executive-level overview that provides context for
the remainder of the discussion. The </I> <I>focuses should be on the most important,
material matters on which management focus in evaluating your financial </I> <I>condition
and operating performance.</I> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>Provide a comprehensive analysis of the factors that impacted your revenues and
expenses, ensuring that you address the </I> <I>specific underlying causes for such
changes. In addition you should discuss known or anticipated trends that have </I>
<I>impacted, and/or may continue to have an impact on your results of operations. Your
discussion and analysis is to </I> <I>provide investors with sufficient information to
understand the historical trends and the expectations for the </I> <I>future as seen
through the eyes of management. Your discussion and analysis should explain the
information that is </I> <I>obtainable from your financial statements and footnote
disclosures and not just repeat such information. In </I> <I>addition, you should provide
a sufficiently detailed explanation as to why an event or transaction has occurred and
</I> <I>is impacting the specific line item through your discussion on a combined basis
and reportable segment level for </I> <I>each period presented.</I> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>Quantify the impact of each factor you identify when multiple and offsetting factors
contribute to fluctuations through the </I> <I>use of a tabular presentation</I> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Please
note that this is not meant to represent an all-inclusive list of where your MD&amp;A
could be improved. There are many areas that we are not specifically identifying that need
to have further analysis throughout your discussion. Refer to Item 303 of Regulation S-K,
Section 501 of the Financial Reporting Codification, and SEC Interpretive Release No.
33-8350 dated December 19, 2003 for additional guidance.</I> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Value Line will include an executive
level overview and will also reexamine Item 303 of Regulation S-K, Section 501 of the
Financial Reporting Codification, and SEC Interpretive Release No. 33-8350 dated December
19, 2003 for additional guidance when preparing Value Line&#146;s Annual Report on Form
10-K for the fiscal year ending April 30, 2007. </FONT></P>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>2.</I> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>We note that you have not identified any critical accounting estimates used
               to prepare your consolidated financial </I> <I>statements. In future filings
               please include a critical accounting policies and estimates section that
               includes those </I> <I>estimates that are critical to your consolidated
               financial statements. Examples may include estimating the fair value of </I>
               <I>investments, net asset value of the Funds for revenue recognition, deferred
               income taxes, etc. Otherwise, please tell us why </I> <I>you believe you have no
               critical accounting estimates. The disclosure is to include a discussion of the
               following:</I> </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>


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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>Types of assumptions underlying the most significant and subjective estimates;</I> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>Sensitivity of those assumptions to deviations of actual results; and</I> </FONT></TD>
</TR>
</TABLE>
<BR>


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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>Circumstances that have resulted in revised assumptions in the past.</I> </FONT></TD>
</TR>
</TABLE>
<BR>




<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Refer
to Section 501.14 of the Financial Reporting Codification for guidance.</I> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In future Form 10-K filings, Value
Line will include a section within the Management Discussion and Analysis addressing any
critical accounting policies and estimates used to prepare the financial statements. It
will include the types of assumptions underlying the most significant estimates deemed
material. Value Line will also refer to Section 501.14 of the Financial Reporting Codification. </FONT></P>

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<A NAME=A012></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Item 9A. Controls and Procedures, page 24</I> </FONT> </P>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>3.</I> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>We note your statement that your Chief Executive Officer and Chief Financial
               Officer concluded that your disclosure controls </I> <I>and procedures
               &#147;were effective to provide reasonable assurance that material information
               relating to the Company and its </I> <I>consolidated subsidiaries is recorded,
               processed, summarized and reported within the time periods specified in the </I>
               <I>Securities and Exchange Commission&#146;s rules and forms.&#148; Please
               confirm to us and revise in future filings your disclosure to </I> <I>clarify,
               if true, that your officers concluded that your disclosure controls and
               procedures are effective to ensure that </I> <I>information required to be
               disclosed by you in the reports that you file or submit under the Exchange Act
               is recorded, </I> <I>processed, summarized and reported, within the time periods
               specified in the Commission&#146;s rules and forms and to ensure that </I>
               <I>information required to be disclosed by an issuer in the reports that it
               files or submits under the Exchange Act is </I> <I>accumulated and communicated
               to your management, including its principal executive and principal financial
               officers, or </I> <I>persons performing similar functions, as appropriate to
               allow timely decisions regarding required disclosure. Otherwise, </I> <I>please
               simply conclude that your disclosure controls and procedures are effective or
               ineffective, whichever the case may be.</I> </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Value Line&#146;s Chief Executive
Officer and Chief Financial Officer have concluded, as a result of the evaluations
referred to in Value Line&#146;s periodic reports,&nbsp;that Value Line&#146;s disclosure
controls and procedures were effective.&nbsp; In the future, Value Line will use the
following language in instances in which Value Line&#146;s evaluation results in a finding
that the disclosure controls and procedures are effective. </FONT></P>

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<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Value Line maintains disclosure controls and procedures that are designed to ensure that
information required to be disclosed in Value Line&#146;s reports filed with the SEC is
recorded, processed, summarized and reported within the time periods specified in the
SEC&#146;s rules and forms, and that such information is accumulated and communicated to
Value Line&#146;s management, including its Chief Executive Officer and Chief Financial
Officer, as appropriate, to allow timely decisions regarding required disclosure. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Value Line&#146;s management has evaluated, with the participation of Value Line&#146;s
Chief Executive Officer and Chief Financial Officer, the effectiveness of
Value Line&#146;s disclosure controls and procedures as of the end of the period covered by
this report. Based on that evaluation, the Chief Executive Officer and the Chief Financial
Officer have concluded that Value Line&#146;s disclosure controls and procedures were
effective as of the end of the period covered by this&nbsp;report. </FONT></TD>
</TR>
</TABLE>
<BR>

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<A NAME=A013></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><I>Note 1 &#151;Organization and Summary of Significant Accounting Policies, page 37</I></U> </FONT> </P>

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<A NAME=A014></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><I>Revenue Recognition, page 37</I></U> </FONT> </P>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>4.</I> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>With regards to your subscription revenues policy, please revise your
               disclosure in future filings to clearly disclose the </I> <I>types of products
               this policy covers (e.g., print publications, electronic publications, internet
               access, etc.). Also </I> <I>disclose the length of the subscriptions. Provide us
               with the disclosure you intend to include in future filings.</I> </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following disclosure will be
added to Note 1 in upcoming filings: </FONT></P>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Depending
upon the product, subscriptions are available in print, via internet access, and CD-ROM.
The length of a subscription varies by product and offer received by the subscriber.
Generally, subscriptions are available as trial subscriptions, annual subscriptions and/or
multi-year subscriptions. Subscription revenues are recognized on a straight line basis
over the life of the subscription. Accordingly, the amount of subscription fees to be
earned by fulfilling subscriptions after the date of the balance sheet is shown as
unearned revenue within current and long-term liabilities. </FONT></TD>
</TR>
</TABLE>
<BR>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>5.</I> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>We note that you sell the Value Line Investment Analyzer and Value Line
               Mutual Fund Survey for Windows CD-ROM software </I> <I>programs with periodic
               updates and the Value Line DataFile. However, it is unclear how your revenue
               recognition policy </I> <I>addresses the sale of these products. Please tell us
               in a sufficient amount of detail your policy for recognizing revenue </I> <I>for
               these software programs. Also tell us how you account for software program
               enhancements. Finally, tell us the amount of </I> <I>revenue recognized for
               these programs for each period presented. Refer to SOP 97-2 for guidance.</I> </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Value Line Investment Analyzer
and Value Line Mutual Fund Survey for Windows software are treated the same as print in
terms of revenue recognition. Data File is an electronic subscription to Value Line&#146;s
equity database and sold as an annual subscription. The revised disclosure in response to
comment 4 represents the revenue recognition policy for all subscription revenues, which
include the above products. Software program enhancements are currently provided to active
subscribers without any additional charge. The amount of revenue recognized for these
products during the fiscal years ended April 30, 2006, 2005, and 2004 is $5,906,000,
$6,815,000 and $6,812,000 respectively. </FONT></P>

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               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>6.</I> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>We note that you provide a customized data service called The Total Return
               Service. In addition, you state that you receive </I> <I>fees for indices
               calculations performed by third parties. However, it does not appear that your
               revenue recognition policy </I> <I>addresses these services. Please tell us your
               policy for recognizing revenue for this service and any other services you </I>
               <I>provide including the authoritative literature that supports your accounting.
               Please tell us the amount of revenue </I> <I>recognized for these services for
               each period presented.</I> </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The revised disclosure in response to
comment 4 is the revenue recognition policy for all material subscription revenues. The
amount of revenue recognized for the products referenced in the above comment during the
fiscal years ended April 30, 2006, 2005, and 2004 is $23,000, $31,000, and $18,000
respectively. </FONT></P>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>7.</I> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>We note that you license for fees certain trademarks and proprietary
               information for a series of products. However, it does </I> <I>not appear that
               you have disclosed your policy for recognizing revenue for these fees. Please
               tell us your policy for </I> <I>recognizing revenue for your licensing programs
               including the authoritative literature that supports your accounting. Please
               </I> <I>tell us the amount of revenue recognized for your licensing programs for
               each period presented.</I> </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following disclosure will be
added to Note 1 in upcoming filings: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Licensing
revenues are derived from licensing certain Value Line trademarks and Value Line
proprietary ranking system information to third parties under written agreements for use
in selecting securities for third party marketed products, including unit investment
trusts, closed-end fund products and exchange traded funds. Value Line earns an asset
based licensing fee as specified in the individual licensing agreements. Revenue is
recognized monthly over the term of the agreement and will fluctuate as the market value
of the underlying portfolio increases or decreases in value. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Value Line, Inc. has relied on SEC
SAB 101 and FASB SFAC 5 to support its accounting for recognition of this revenue. The
amount of revenue recognized for licensing fees during the fiscal years ended April 30,
2006, 2005, and 2004 are $5,016,000, $2,541,000 and $1,137,000 respectively. These amounts
are disclosed in Form 10-K, Item 6, Selected Financial Data. </FONT></P>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>8.</I> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>We note that you act as the underwriter and distributor for the Value Line
               Funds through Value Line Securities, Inc. Value </I> <I>Line Securities, Inc.
               earns advisory fees and service and distribution fees in this capacity.</I> </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>With regards to the advisory fees, or investment management fees, please revise your
policy disclosure in future filings to </I> <I>explain when services are performed and how
such fees are calculated.</I> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>With regards to the service and distribution fees, please expand your disclosure in
Note 3 to explain to investors what the </I> <I>service and distribution plans under rule
12b-1 of the Investment Company Act of 1940 are including how fees are </I> <I>earned by
you.</I> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>With regards to your underwriting services, please tell us the types of revenues you
receive and how you account for such </I> <I>revenues. Please also tell us the types of
expenses you incur and how you account for these expenses. Refer to </I> <I>paragraphs
4.58 and 7.49-54 of the AICPA Audit and Accounting Guide for Brokers and Dealers in
Securities for </I> <I>guidance.</I> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>We note that you record investment management fees and 12b-1 service and distribution
fees net of fee waivers. Please tell </I> <I>us what the fee waivers are and how the
amounts are determined. Also tell us your accounting for fee waivers </I> <I>including the
supporting authoritative literature.</I> </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Please
tell us how you intend to revise your footnote disclosures in future filings to address
the above items.</I> </FONT></P>

Value Line Securities Inc. does not earn investment management or advisory fees.  Value Line Securities receives service and
distribution fees (12b-1 fees) from certain of the Value Line Mutual Funds.

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>With regard to the investment
management fees earned by Value Line, Inc., the following disclosure will be revised and
added to Note 1 in upcoming filings: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Investment
management fees consist of management fees from the Value Line Mutual Funds, and from
asset management clients. Investment management fees for the mutual funds are earned on a
monthly basis as services are performed and the fee is calculated based on average daily
net assets of the mutual funds in accordance with each fund&#146;s advisory agreement.
Investment management fees for the asset management accounts are earned on a monthly basis
as services are performed and the fee is calculated on assets in accordance with each of
the management agreements. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>With regard to service and
distribution fees received by Value Line Securities, Note 3 will be expanded to include
the following: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Service
and distribution fees are received from the Value Line Mutual Funds in accordance with
service and distribution plans under rule 12b-1 of the Investment Company Act of 1940. The
plans are compensation plans, which means that the distributor&#146;s fees under the plans
are payable without regard to actual expenses incurred by the distributor. Expenses
include payments to securities dealers, banks, financial institutions and other
organizations which provide distribution, marketing, and administrative services with
respect to the distribution of the mutual funds&#146; shares. Service and distribution
fees are received on a monthly basis and calculated on the average daily net assets of the
respective mutual fund in accordance with each fund prospectus. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>With regard to underwriting services,
Value Line Securities does not receive any underwriting revenues nor does it have any
underwriting expenses. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fee waivers consist of management fee
waivers by Value Line, Inc. and service and distribution fee waivers by Value Line
Securities. The fee received by Value Line, Inc. and Value Line Securities is net of the
fee waivers. Waivers are determined by management in part based on shifting trends in
distribution channels, market conditions, fund performance, and marketing activity. Future
disclosures will include an aggregate of fees waived. For the nine months ended January
31, 2007 and 2006, total management fee waivers were $191,318 and $0, respectively, and
service and distribution fee waivers were $2,228,554 and $76,000, respectively. Value
Line, Inc. and Value Line Securities have no right to recoup the previously waived amounts
of management fees and 12b-1 fees, respectively. </FONT></P>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>9.</I> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>We note that Value Line Asset Management manages pension funds and
               institutional and individual portfolios through </I> <I>investment advisory
               agreements. Please tell us the different types of services performed through
               these services. Also tell </I> <I>us how you have accounted for these services
               in your consolidated financial statements. Finally, tell us the amount of </I>
               <I>revenues recognized for these services for each period presented. Refer to
               the AICPA Audit and Accounting Guide for Brokers </I> <I>and Dealers in
               Securities for guidance.</I> </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Value Line, Inc.&#146;s asset
management division manages equity and fixed income portfolios on a discretionary basis
for third parties. Fees are calculated based on assets under management. Revenues are
accounted for within Investment Management Fees on the consolidated financials. The amount
of revenue recognized for the asset management division for services to institutional and
individual portfolios during the fiscal years ended April 30, 2006, 2005, and 2004 is
$1,084,000, $1,271,000 and $1,347,000 respectively. </FONT></P>

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<A NAME=A015></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><I>Valuation of Securities, page 37</I></U> </FONT> </P>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>10.</I> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>We note that you have a significant amount of investments for which you have
               classified as either available-for-sale or </I> <I>trading in accordance with
               SFAS 115. We further note that of the $65,915,068 available-for-sale securities,
               $46,640,796 is </I> <I>investments in Value Line Mutual Funds. Please tell us if
               these investments are held by Value Line Securities, Inc., your </I>
               <I>broker-dealer subsidiary. If these investments are held by Value Line
               Securities, Inc., please tell us how you determined </I> <I>these securities are
               within the scope of SFAS 115 and are properly classified as available-for-sale.
               Also tell us whether </I> <I>you (i.e, Value Line Securities, Inc.) are the
               general partner and/or have a significant limited partner interest in the </I>
               <I>Funds in which you hold interests.</I> </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Value Line, Inc., not Value Line
Securities, holds the investments held as available for sale securities. Value Line, Inc.
and its subsidiaries have no partnership interests in the Funds. Other than serving as
Advisor and Distributor, Value Line does not have any interest in the Funds except when
holding shares, on the same basis as the public. </FONT></P>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>11.</I> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>We note that for securities that do not have closing sales prices listed on a
               securities exchange, you use the midpoint </I> <I>between the latest available
               and representative asked and bid prices to estimate the fair value of these
               securities. Please </I> <I>explain how you determined that this method provides
               a reasonable estimate of these securities&#146; fair value. Refer to SFAS </I>
               <I>107 and SOP 94-6 for guidance. In future filings, please disclose each type
               of security and corresponding amount for which </I> <I>you do not use listed
               market prices to estimate the fair value.</I> </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The above methodology of using the
midpoint between the latest available and representative asked and bid prices to estimate
the fair value of securities was not utilized in the years ended December 31, 2006 or
2005. As of the date of this letter, it has not been used in the current fiscal year,
which ends April 30, 2007. In light of the guidance in SFAS 107 that fair value represents
the amount at which the instrument could be exchanged in a current transaction between
willing parties, other than in a forced or liquidation sale, Value Line will use the
latest available and representative bid prices for securities for which closing sales
prices are not available and securities traded in an over-the-counter market. </FONT></P>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>12.</I> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>We note that you estimate the fair value of open-ended mutual fund shares
               based upon the daily net asset values calculated </I> <I>by the funds. From your
               disclosure, it is unclear whether this is a quoted market price or based on an
               estimate of fair </I> <I>value. Please clarify your disclosure in future
               filings. If the daily net asset value calculated by the fund is an estimate,
               </I> <I>please disclose in greater detail the methods used to estimate the fair
               value. Refer to paragraphs 10-15 of SFAS 107 and </I> <I>paragraphs 12 to 14 of
               SOP 94-6 for guidance. Please tell us how you intend to revise your disclosure
               in future filings.</I> </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The disclosure will be updated to
reflect the following: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Valuation
of open-ended mutual fund shares is based upon the publicly quoted net asset value of the
shares. </FONT></P>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>13.</I> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>In future filings, please disclose in greater detail the methods used to
               estimate the fair value of the fixed maturity </I> <I>government debt
               obligations. In this regard, it is unclear if you are using quoted market prices
               or some other method. Refer </I> <I>to paragraphs 10-15 of SFAS 107 and
               paragraphs 12 to 14 of SOP 94-6 for guidance. Please tell us how you intend to
               revise </I> <I>your disclosure in future filings.</I> </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The disclosure will be updated to
reflect the following: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
market value of the Company&#146;s fixed maturity government debt obligations are
determined utilizing publicly quoted market prices. </FONT></P>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>14.</I> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>In future filings either in your footnote disclosures or within MD&amp;A,
               please disclose how you determine the classification </I> <I>of your securities
               between available-for-sale and trading.</I> </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In future filings, the following
disclosure will be added: </FONT></P>

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<A NAME=A016></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trading
Securities and Available-for-Sale Securities</FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
All
securities held in Value Line Securities, Inc., as a broker/dealer, are classified as
trading securities. Securities held by Value Line, Inc. and its other subsidiaries, which
are all held with the expectation that they may be sold in less than one year, are
classified as trading securities. All other investments not classified as trading
securities are classified as available-for-sale securities. </FONT></TD>
</TR>
</TABLE>
<BR>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>15.</I> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>With regards to the Value Line Funds, in future filings either in a footnote
               disclosure or within MD&amp;A, please include </I> <I>disclosure for the
               following, as appropriate:</I> </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>The amount of any capital investment obligations or commitments;                      </I> </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>The percentage of the Funds owned by you;                      </I> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I> How you decide the amount of investment to make in the Value Line Funds, including the business purpose for investing in the Funds; and                     </I> </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>How you decide to sell your investments in the Funds.                      </I> </FONT></TD>
</TR>
</TABLE>
<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In future filings Value Line, Inc. will include, as appropriate, disclosures to address the items shown in comment  15. </FONT></P>

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<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><I>Note 11 &#151; Disclosureof Credit Risk of Financial instruments with Off Balance Sheet Risk, page 43</I></U> </FONT> </P>

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               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>16.</I> </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>We note that during fiscal years prior to 2006 you executed securities
               transactions on behalf of the Value Line Funds in </I> <I>which you may be
               required to discharge the obligations of the nonperforming party. In future
               filings, please disclose the </I> <I>time period of your obligation; the
               maximum, undiscounted payments you could be required to make; and any recourse
               you may </I> <I>have to recover such payments from third parties. Refer to
               paragraph 13 of FIN 45 for guidance. Please tell us how you </I> <I>intend to
               revise your disclosure in future filings.</I> </FONT></P></TD>
               </TR>
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               <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The executed securities transactions
occurred prior to December 2004 and have all settled without any obligation. As of the
date of this response Value Line would not include this disclosure. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As requested in the staff&#146;s
letter, Value Line has directed us to confirm that it acknowledges that: </FONT></P>


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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I> Value Line is responsible for the adequacy and accuracy of the disclosure in the filing;                     </I> </FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action
                      with respect to the filing; and                      </I> </FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>Value Line may not assert these staff comments as a defense in any proceeding initiated by
the Commission or any person under the federal securities laws of the United States.                      </I> </FONT></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please
contact the undersigned at (212) 408-5422 if we can provide any additional information of
if the staff has any further comments. </FONT></P>


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     <TD WIDTH=60% ALIGN=LEFT>&nbsp;</TD>
     <TD WIDTH=5% ALIGN=LEFT>&nbsp;</TD>
     <TD WIDTH=30% ALIGN=LEFT>Very truly yours,</TD>
     <TD WIDTH=5% ALIGN=LEFT>&nbsp;</TD></TR>
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     <TD ALIGN=LEFT>&nbsp;</TD><TD ALIGN=LEFT>&nbsp;</TD></TR>
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     <TD ALIGN=LEFT>&nbsp;</TD><TD ALIGN=LEFT>&nbsp;</TD></TR>
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     <TD ALIGN=LEFT>&nbsp;</TD><TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=LEFT>/s/ Peter K.Ingerman</TD><TD ALIGN=LEFT>&nbsp;</TD></TR>
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     <TD ALIGN=LEFT>&nbsp;</TD><TD ALIGN=LEFT>&nbsp;</TD></TR>
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     <TD ALIGN=LEFT>&nbsp;</TD><TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=LEFT>Peter K. Ingerman</TD><TD ALIGN=LEFT>&nbsp;</TD></TR>
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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>VIA EDGAR </FONT></P>
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