-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SAeQPZL+mECK4vsbQapxiIXGawYE3JcHgTmPylG+amWwWdiKlip31TSL1/kMLGlk lgB+hSDQwlyljdlGSbYJoQ== 0000912057-02-007474.txt : 20020414 0000912057-02-007474.hdr.sgml : 20020414 ACCESSION NUMBER: 0000912057-02-007474 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011231 FILED AS OF DATE: 20020225 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERISTOCK MUTUAL FUND INC CENTRAL INDEX KEY: 0001000207 IRS NUMBER: 943227081 STATE OF INCORPORATION: MD FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-09090 FILM NUMBER: 02557533 BUSINESS ADDRESS: STREET 1: 1480 MORAGA RD $200 STREET 2: #2 CITY: MORAGA STATE: CA ZIP: 94556 BUSINESS PHONE: 5103763490 MAIL ADDRESS: STREET 1: 127 DEVIN STREET 2: STE 2 CITY: MORAGA STATE: CA ZIP: 94556 N-30D 1 a2071652zn-30d.txt N-30D [AMERISTOCK LOGO] SEMI-ANNUAL REPORT DECEMBER 31, 2001 AMERISTOCK MUTUAL FUND, INC. AMERISTOCK LARGE COMPANY GROWTH FUND AMERISTOCK FOCUSED VALUE FUND TABLE OF CONTENTS MANAGER'S COMMENTARY- AMERISTOCK MUTUAL FUND, INC 4 MANAGER'S COMMENTARY- AMERISTOCK LARGE COMPANY GROWTH FUND 7 MANAGER'S COMMENTARY- AMERISTOCK FOCUSED VALUE FUND 10 SCHEDULE OF INVESTMENTS - AMERISTOCK MUTUAL FUND, INC 13 SCHEDULE OF INVESTMENTS - AMERISTOCK LARGE COMPANY GROWTH FUND 15 SCHEDULE OF INVESTMENTS - AMERISTOCK FOCUSED VALUE FUND 16 STATEMENT OF ASSETS AND LIABILITIES 17 STATEMENT OF OPERATIONS 18 STATEMENT OF CHANGES IN NET ASSETS - AMERISTOCK MUTUAL FUND, INC 19 STATEMENT OF CHANGES IN NET ASSETS - AMERISTOCK LARGE COMPANY GROWTH FUND 20 STATEMENT OF CHANGES IN NET ASSETS - AMERISTOCK FOCUSED VALUE FUND 21 FINANCIAL HIGHLIGHTS - AMERISTOCK MUTUAL FUND, INC 22 FINANCIAL HIGHLIGHTS - AMERISTOCK LARGE COMPANY GROWTH FUND 24 FINANCIAL HIGHLIGHTS - AMERISTOCK FOCUSED VALUE FUND 24 NOTES TO FINANCIAL STATEMENTS 26 MANAGER'S COMMENTARY AMERISTOCK MUTUAL FUND, INC. The total return for the Ameristock Mutual Fund was -3.43% for the six months ended December 31, 2001. (Annualized total return for 1 year was 1.25%, 3 years was 7.87%, 5 years was 17.08% and since inception was 20.20%). We outperformed our benchmark, the S&P 500 Index in 2001 because of our overweighting of financial service companies, a sector that held its own, combined with a bear market in technology stocks, an area in which we were underrepresented. Since the middle of the year, financial service firms accounted for about 19% of the Fund, while technology represented 15%, which is more in line with the general market industry weights. Our performance since the middle of the year has also been more in line with the index. We currently see no one industry being very over or under valued (derived from a company's bottoms up fundamental analysis) and hence the industry weights of the Ameristock Mutual Fund are about as index neutral as they ever will be. What this means for you is, not only will we act like an index fund (in that our turnover is kept to a minimum, and our brokerage expenses are low) but also, in the beginning of 2002, at least, our total return has the potential to more closely mirror the benchmark index, because our industry weightings are now more closely aligned with the benchmark. Since the majority of you reading this report are first time readers of Ameristock (I know this because assets in the Fund grew by over 10 times in 2001) this statement, that "our total return has the potential to closely mirror the benchmark index, because our industry weightings are now more closely aligned with the benchmark." probably comes as a shock. After all, many of you probably invested in this Fund because a) our historic returns were different from the benchmark, and b) we beat the benchmark. Well, past performance does not guarantee future results. While we enjoy beating the benchmark and do strive to accomplish that goal, our primary concern is to attempt to alleviate risk. There are many ways of measuring risk today. The quantitative people talk about Sharpe ratios, Altmans Z scores and Alpha to Gamma indicators. The political/news people talk about Greenspan, the Dollar to Euro exchange, and the flow of money and interest rates. We simple people at Ameristock measure risk a bit differently, does something make sense and can you sleep well with yourself. We try to keep in mind that you want to be in the market, that you enjoy getting equity returns, and yet given a choice, you may not want all the risk or volatility the market sometimes shovels out like it has the last two years. 4 Because of this aversion to risk: - We buy and hold large companies that have been around a long time and will continue to be around a while. After all, if you are investing for college in 15 years you want to make sure the company you invest in is around in 15 years too. As Will Rogers said "Its not the return on my money I am concerned about, it is the return of my money." - We overweigh those companies that have cheaper price to earnings, book, sales, and cash flow ratios. Because of this aversion to risk, we overweigh those companies that have strong balance sheets, long-term increasing sales and strong brands. - Our investing philosophy of buying the biggest and bluest firms along with our investing style of combining the best of both active & passive portfolio management will not change. In 2001 we added two new positions to the Fund, Texas Instruments and Duke Energy, both of which have very good and long histories of increasing shareholder wealth over time. IN CLOSING When you call the (800) 394-5064 phone number, a machine giving you four choices will greet you: 1. Ameristock's Daily Net Asset Value. (A recording). 2. To request Prospectuses and Applications. (Our distributor, ALPS Distributors, Inc.). 3. If you have a question about your account, want to establish automatic investing, or want to redeem shares. (Our transfer agent, Mutual Shareholder Services). 4. If you have a question about the Fund or have any problems. (This is a hidden option that gets your call to us, the investment management company). Ameristock Mutual Fund, Inc. is a no-load, value based, domestic, equity-income fund that invests in large capitalization companies. Thank you for investing in the Ameristock Mutual Fund and please tell your friends about us. /s/ Nicholas D. Gerber /s/ Andrew Ngim Nicholas D. Gerber Andrew Ngim Portfolio Manager Portfolio Manager 5 COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE AMERISTOCK MUTUAL FUND, INC. (AMSTX) AND THE STANDARD & POOR'S 500 INDEX [CHART]
AMERISTOCK MUTUAL STANDARD & POOR'S 500 FUND INDEX 31-Aug-95 $10,000.00 $10,000.00 12/31/1995 $11,428.75 $11,049.00 12/31/1996 $14,582.23 $13,584.00 12/31/1997 $19,373.68 $18,114.00 12/31/1998 $25,569.22 $23,290.00 12/31/1999 $26,266.29 $28,190.00 12/31/2000 $31,702.49 $25,625.00 12/31/2001 $32,100.04 $22,581.00
The S&P 500 Index is a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. It is an unmanaged index. *Performance calculations are as of the end of December each year. Past performance is not indicative of future results. Fund inception date is August 31,1995. The total returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. AVERAGE ANNUAL RETURNS AS OF DECEMBER 31, 2001
AMERISTOCK MUTUAL FUND, INC. RETURN - ---------------------------------- ------ 6-Month* -3.43% 1 Year 1.25% 5 Years 17.08% Since Inception 8/31/95 20.20%
Average annual total returns reflect reinvestment of all dividends and capital gains distributions. Fund inception date is 8/31/95. Past performance is not indicative of future results. Investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The total returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. *Not annualized TOP 10 EQUITY HOLDINGS* AS OF DECEMBER 31, 2001
COMPANY % OF INVESTMENTS - --------------------------------------------------- Dell Computer Corp. 4.4% Duke Energy Corp. 4.3% Washington Mutual Inc. 3.7% International Business Machines 3.7% General Motors Corp. 3.6% Bristol-Meyers Squibb Co. 3.6% Bank of America Corp. 3.6% Wachovia Corp. 3.5% Sara Lee Corp. 3.3% American Home Products Corp. 3.3%
*Top ten holdings are subject to change, and there are no guarantees that the Fund will continue to re-main invested in any particular company or holding. SECTOR PROFILE AS A PERCENT OF NET ASSETS AS OF DECEMBER 31, 2001 [CHART] Automotive 5.5% Banking 14.0% Capital Goods 5.9% Chemicals & Fertilizer 2.4% Consumer Staples 9.2% Diversified 0.9% Electronics 15.6% Entertainment 0.1% Financial-Other 4.9% Healthcare (Products) 13.2% Insurance 1.6% Oil & Gas 5.3% Retailing 3.6% Software 0.4% Telecommunications 5.9% Utilities 4.3% Other 7.2%
6 MANAGER'S COMMENTARY AMERISTOCK LARGE COMPANY GROWTH FUND It was a challenging first year for the Ameristock Large Company Growth Fund. As difficult as the first year was, there were some encouraging signs in the latter half of the year: - The performance for the second half of the year was relatively better than the first half: -18.7% vs -27.7%. - Cash inflows grew by about 34% over the last 6 months. - Net total assets in the Fund increased by about 15% over the same time period. Overall, the total return for the Ameristock Large Company Growth Fund was - -18.71% for the six months ended December 31, 2001. The Fund returned -41.20% for the one year ended December 31, 2001. We will not sugar coat performance, as this year was disappointing in terms of return. The NASDAQ(1) and S & P 500 returned -5.55% and -9.73% for the six months ended December 31, 2001, respectively. The Fund's underperformance can be attributed to a number of factors. Foremost was that those sectors that were the leaders when the economy was strong - technology, telecom, and fiber optics - were hit hard when the economy slowed down. The Fund had significant exposure to these industries. Secondly, the Fund owned a significant position in Enron. The sharp decline of this stock had a material negative impact on the Fund's performance. Thirdly, the Fund has a "growth" orientation, and during the period growth stocks as a whole underperformed the overall stock market. One positive that will arise when the economy recovers is that those companies which survive will come out even stronger than before. One such company is Texas Instruments. They are a market-leader in chip making for cellular phones. When the semi-conductor and telecom sectors strengthen, we are hopeful that Texas Instruments will once again grow. We see 2002 as a period for recovery. Inventories have shrunk. Sentiments towards interest rate stability rather than cuts bode well for a strengthening economy. With current lower interest rates, companies should start increasing capital spending which they dramatically reduced last year. A good portion of that probably will be earmarked in building up its IT infrastructure. 7 As written in our previous annual letter, long-term investing in the best and largest blue-chip companies is our goal. We believe the companies we hold are excellent blue-chip companies with outstanding prospects for future growth. We have slightly realigned the portfolio to reduce volatility in the future, so that hopefully, we do not see the type of decline we experienced in 2001. We have been adding to companies in our portfolio, which we believe, are now at attractive prices. These recent times have been stressful to many of our investors. We take this to heart especially since we "eat our own cooking" and are invested in the Fund along with you. Thank you for your continued confidence and faith in the Ameristock Large Company Growth Fund. /s/ Robert Nguyen /s/ Andrew Ngim Robert Nguyen Andrew Ngim Portfolio Manager Portfolio Manager (1) The NASDAQ Composite Index is a market-value weighted index comprised of over 5,000 domestic and non-U.S. based common stocks listed on the Nasdaq Stock Market. It is an unmanaged index. 8 COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE AMERISTOCK LARGE COMPANY GROWTH FUND (AMLGX) AND THE STANDARD & POOR'S 500 INDEX [CHART]
AMERISTOCK LARGE STANDARD & POOR'S 500 CO. GROWTH FUND INDEX 26-Dec-00 $10,000.00 $10,000.00 31-Dec-00 $10,000.00 $10,000.00 31-Jan-01 $10,366.67 $10,355.00 28-Feb-01 $ 8,440.00 $ 9,411.00 31-Mar-01 $ 7,493.33 $ 8,815.00 30-Apr-01 $ 8,006.67 $ 9,500.00 31-May-01 $ 7,586.67 $ 9,563.00 30-Jun-01 $ 7,233.33 $ 9,331.00 31-Jul-01 $ 6,873.33 $ 9,239.00 31-Aug-01 $ 6,180.00 $ 8,661.00 30-Sep-01 $ 5,406.67 $ 7,962.00 31-Oct-01 $ 5,520.00 $ 8,114.00 30-Nov-01 $ 5,966.67 $ 8,736.00 31-Dec-01 $ 5,880.00 $ 8,812.00
The S&P 500 Index is a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. It is an unmanaged index. *Performance calculations are as of the end of each month from 12/26/00 to 12/31/01. Past performance is not indicative of future results. Fund inception date is December 26, 2000. The total returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. AVERAGE ANNUAL RETURNS AS OF DECEMBER 31, 2001
AMERISTOCK LARGE COMPANY GROWTH FUND RETURN - ------------------------ ----------- 6-Month* -18.71% 1 Year -41.20 5 Years N/A Since Inception 12/26/00 -40.64%
Average annual total returns reflect reinvestment of all dividends and capital gains distributions. Fund inception date is 12/26/00. Past performance is not indicative of future results. Investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The total returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. *Not annualized TOP 10 EQUITY HOLDINGS* AS OF DECEMBER 31, 2001
COMPANY % OF INVESTMENTS - ------------------------------- ---------------- Federal Home Loan Mortgage Corp. 5.3% Charles Schwab Corp. 4.7% Citigroup Inc. 4.7% Exxon Mobil Corp. 4.6% Home Depot Inc. 4.4% Merck & Co. Inc. 4.3% Safeway Inc. 4.3% WorldCom Inc.-WorldCom Group 4.2% Applied Materials Inc. 4.2% Sun Microsystems Inc. 4.0%
*Top ten holdings are subject to change, and there are no guarantees that the Fund will continue to remain invested in any particular company or holding. SECTOR PROFILE AS A PERCENT OF NET ASSETS AS OF DECEMBER 31, 2001 [CHART] Banking 4.7% Biotechnology 1.0% Business Services 1.2% Capital Goods 2.9% Communication Equipment 3.1% Computer Equipment 4.0% Computer Storage 7.2% Consumer Staples 5.1% Entertainment 2.6% Financial - Other 10.0% Healthcare (Products) 5.2% Insurance 2.7% Oil & Gas 4.6% Online Information 1.0% Phone Network/Equipment 5.9% Retailing 4.4% Semiconductors 5.3% Semiconductor Equipment 3.6% Software 2.8% Telecommunications 4.3% Wireless Equipment 2.0% Other 16.4%
9 MANAGER'S COMMENTARY AMERISTOCK FOCUSED VALUE FUND The total return for the Ameristock Focused Value Fund was 0.81% for the six months ended December 31, 2001. (Annualized total return for 1 year was 60.42% and since inception was 59.61%). Ameristock Focused Value had a great year with its Net Asset Value increasing and its growth in assets. We are now at $8.1 million! This is significant because between $30-$50 million in assets it is our intention to close the doors to all new shareholders. At that time, with your permission, we would like to change the legal structure from an investment company which is what we are today, a mutual fund, to a publicly traded stock holding company (a stock that you would be able to buy and sell at your discretion on an exchange). This change should have two long-term beneficial effects. One, investment companies (mutual funds) trade every day at Net Asset Value or book value of the fund. Publicly traded stocks often trade at prices above book value. Therefore, by changing the legal structure of the Fund you, hopefully, will get an appreciation of your holdings. Two, if we think we can add value by taking large positions in companies (which we do) then it is logical to conclude that if we find a company we want to own a large position in, we would also like to own the entire enterprise. Mutual funds can not legally own entire companies, publicly traded stock companies can. This is our long-term goal and I hope yours too. In addition, while we would like to change the legal structure of the Fund some time in the future, we do not know when or even if we will be able to do so. Our short-term goal is to make money in the stock market by taking large positions in a few companies and hoping they go up in value. We accomplished this goal in 2001. The Funds assets were in small value stocks for most of the year. The small value sector was one of the few bright spots in the investment universe in 2001. In particular two companies we owned, Restoration Hardware and TBC did exceptionally well for us. Unfortunately, they could have done even better for the Fund if we had held on to them longer. We initially bought Restoration Hardware at $1.19 or less and sold it at $4.19, as of December 31, 2001 it was at $8.30 per share. We initially bought TBC at $6.03 or less and sold it at $10.01, as of December 31, 2001 it was at $13.39 per share. I don't know if the lesson to be learned here is "let your winners run" or "no one ever got broke taking a profit". In either case, one of the largest holdings of the Fund today is Media Arts (MDA). 10 Media Arts designs, manufactures and distributes collectible, gift and art products. Its most well known artist, which it represents, is Thomas Kinkade, "The Painter of Light". Mr. Kinkade's work is highly regarded by a large and devoted following that is growing each day. Back in February 2001 Mr. Kinkade proposed to take the company private at $6.25 a share. His offer was turned down by management, who has since been replaced. We believe the offering price to be of fair value and think the stock price will eventually get to that level. Hopefully sooner rather than later. I do not expect our returns in 2002 to match those of 2001 for two reasons. 1) The small value sector has already had a nice run up recently. 2) The types of companies we are adding to the Fund today are larger, for liquidity reasons (something we would not have to worry about as a stock), and not as underpriced vs. their intrinsic value as we were able to find a year ago. Ameristock Focused Value Fund is a non-diversified, no-load fund that can invest almost anywhere it sees opportunity for capital appreciation. This is an aggressive Fund that takes risks and will have large fluctuations in return both on the upside and downside. /s/ Nicholas D. Gerber /s/ Howard Mah Nicholas D. Gerber Howard Mah Portfolio Manager Portfolio Manager 11 COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE AMERISTOCK FOCUSED VALUE FUND (AMFVX) AND THE RUSSELL 2000 INDEX [CHART]
AMERISTOCK FOCUSED VALUE FUND RUSSELL 2000 INDEX 26-Dec-00 $10,000.00 $10,000.00 31-Dec-00 $10,000.00 $10,000.00 31-Jan-01 $13,300.00 $10,521.00 28-Feb-01 $13,386.67 $ 9,831.00 31-Mar-01 $13,086.67 $ 9,350.00 30-Apr-01 $14,520.00 $10,081.00 31-May-01 $15,373.33 $10,329.00 30-Jun-01 $15,913.33 $10,686.00 31-Jul-01 $17,000.00 $10,108.00 31-Aug-01 $16,493.33 $ 9,781.00 30-Sep-01 $12,486.67 $ 8,465.00 31-Oct-01 $13,273.33 $ 8,960.00 30-Nov-01 $15,140.00 $ 9,653.00 31-Dec-01 $16,042.33 $10,249.00
The Russell 2000 Index is an unmanaged index that measures the performance of the 2,000 smallest companies in the Russell 3000 index, which represents approximately 11% of the total market capitalization of the Russell 3000 Index. *Performance calculations are as of the end of each month from 12/26/00 to 12/31/01. Past performance is not indicative of future results. Fund inception date is December 26, 2000. The total returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. AVERAGE ANNUAL RETURNS AS OF DECEMBER 31, 2001
AMERISTOCK FOCUSED VALUE FUND RETURN - --------------------- ------- 6-Month* 0.81% 1 Year 60.42% 5 Years N/A Since Inception 12/26/00 59.61%
Average annual total returns reflect reinvestment of all dividends and capital gains distributions. Fund inception date is 12/26/00. Past performance is not indicative of future results. Investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The total returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. *Not annualized TOP 10 EQUITY HOLDINGS* AS OF DECEMBER 31, 2001
COMPANY % OF INVESTMENTS - ----------------------------------- ---------------- Midwest Express Holdings Inc. 11.6% Media Arts Group Inc. 10.0% Shopko Stores Inc. 8.0% KLM Royal Dutch Airlines 7.4% Jones Lang LaSalle Inc. 5.2% ABN AMRO Inc. 4.8% Bristol-Meyers Squibb Co. 4.7% Trammel Crow Co. 4.3% Tellabs Inc. 4.1% Dura Automotive Systems Inc.-Class A 3.9%
*Top ten holdings are subject to change, and there are no guarantees that the Fund will continue to remain invested in any particular company or holding. SECTOR PROFILE AS A PERCENT OF NET ASSETS AS OF DECEMBER 31, 2001 [CHART] Automobile Supply 3.9% Business Services 5.8% Financial Services 5.7% Healthcare 4.7% Real Estate 11.2% Retailing 21.2% Services 2.9% Telecommunications 4.1% Transportation 19.1% Other 21.4%
12 AMERISTOCK MUTUAL FUND, INC. SCHEDULE OF INVESTMENTS
MARKET INDUSTRY COMPANY SYMBOL SHARES VALUE - -------------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS Automotive 5.52% Ford Motor Co. F 1,448,242 $22,766,364 General Motors Corp. GM 907,520 44,105,472 Banking 14.05% Bank of America Corp. BAC 688,377 43,333,332 CitiGroup Inc. C 279,816 14,125,112 PNC Financial Services PNC 443,500 24,924,700 Wachovia Corp. WB 1,358,300 42,596,288 Washington Mutual Inc. WM 1,384,000 45,256,800 Capital Goods 5.87% Boeing Co. BAC 816,960 31,681,709 Caterpillar Inc. CAT 335,400 17,524,650 General Electric Co. GE 545,569 21,866,405 Chemicals & Fertilizer 2.44% Dow Chemical Co. DOW 466,880 15,771,206 Du Pont de Nemours & Co. DD 323,600 13,756,236 Consumer Staples 9.16% Albertsons Inc. ABS 474,500 14,942,005 Coca-Cola Co. KO 50,380 2,375,417 McDonalds Corp. MCD 1,230,700 32,576,629 Pepsico Inc. PEP 36,960 1,799,582 Procter & Gamble Co. PG 239,600 18,959,548 Sara Lee Corp. SLE 1,811,800 40,276,314 Diversified 0.94% Minnesota Mining & Mfg. Co. MMM 96,260 11,378,895 Electronics 15.59% Agilent Technologies Inc.* A 526,529 15,011,342 Dell Computer Corp.* DELL 1,971,700 53,590,806 Hewlett Packard Co. HWP 990,600 20,346,924 Intel Corp. INTC 811,160 25,510,982 International Business Machines IBM 368,600 44,585,856 Texas Instruments Inc. TXN 1,066,000 29,848,000 Entertainment 0.07% Walt Disney Co. DIS 39,070 809,530 Financial-Other 4.86% Fannie Mae FNM 465,370 36,996,915 Merril Lynch & Co. MER 420,000 21,890,400 Healthcare (Products) 13.20% Abbott Laboratories ABT 321,060 17,899,095 American Home Products Corp. AHP 651,800 39,994,448 Bristol-Myers Squibb Co. BMY 860,740 43,897,740 Johnson & Johnson JNJ 292,680 17,297,388 Merck & Co. Inc. MRK 617,940 36,334,872 Pfizer Inc. PFE 113,680 4,530,148
13
MARKET INDUSTRY COMPANY SYMBOL SHARES VALUE - -------------------------------------------------------------------------------------------------------------------------------- Insurance 1.62% Allstate Corp. ALL 536,600 $18,083,420 American International Group AIG 19,953 1,584,268 Oil & Gas 5.33% BP Amoco (ADR) BPA 257,308 11,967,395 ChevronTexaco Corp.. CVX 260,114 23,308,816 Exxon Mobil Corp. XOM 743,200 29,207,760 Retailing 3.65% Home Depot Inc. HD 53,595 2,733,881 Sears Roebuck & Co. S 804,800 38,340,672 Wal-Mart Stores Inc. WMT 53,300 3,067,415 Software 0.40% Microsoft Corp.* MSFT 73,780 4,889,401 Telecommunications 5.87% AT&T Corp. T 165,975 3,010,787 AT&T Wireless Services Inc.* AWE 21,230 305,075 BellSouth Corp. BLS 374,800 14,298,620 SBC Communications Inc. SBC 403,343 15,798,945 Verizon Corp. VZ 794,809 37,721,635 Utilities 4.26% Duke Energy Corp. DUK 1,315,333 51,639,971 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL COMMON STOCKS 92.83% (COST $1,135,294,598) $1,124,519,174 - -------------------------------------------------------------------------------------------------------------------------------- COMMERCIAL PAPER Ford Motor Credit 2.65% Due 01/07/2002 $3,000,000 $2,998,674 General Motors Acceptance Corp. 2.60% Due 01/04/2002 3,000,000 2,999,349 Sears Roebuck Acceptance Corp. 2.45% Due 01/10/2002 3,000,000 2,998,162 Zions Bancorp 2.15% Due 01/02/2002 2,000,000 1,999,881 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL COMMERCIAL PAPER 0.91% (COST $10,996,066) $10,996,066 - -------------------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS Federal Home Loan Bank Discount Note 1.30% Due 01/02/2002 $95,285,000 $95,281,559 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 7.86% (COST $95,281,559) $95,281,559 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS (COST $1,241,572,223) $1,230,796,799 Liabilities in Excess of Other Assets -1.60% ($19,428,645) NET ASSETS 100.00% Equivalent to $40.40 per share on 29,986,070 Shares of Capital Stock Outstanding $1,211,368,154 ================================================================================================================================
*Non-Income Producing ADR-American Depositary Receipt The accompanying notes are an integral part of the financial statements 14 AMERISTOCK LARGE COMPANY GROWTH FUND SCHEDULE OF INVESTMENTS
MARKET INDUSTRY COMPANY SYMBOL SHARES VALUE - -------------------------------------------------------------------------------------------------------------------------------- Banking 4.67% Citigroup Inc. C 402 $20,293 Biotechnology 0.97% Amgen Inc.* AMGN 75 4,233 Business Services 1.15% Paychex Inc. PAYX 143 5,011 Capital Goods 2.94% General Electric Co. GE 319 12,786 Communication Equipment 3.08% Corning Inc. GLW 1,500 13,380 Computer Equipment 4.01% Sun Microsystems Inc.* SUNW 1,412 17,424 Computer Storage 7.25% EMC Corp.* EMC 1,085 14,582 Network Appliance Inc.* NTAP 772 16,884 Consumer Staples 5.09% Coca Cola Co. KO 70 3,301 Safeway Inc.* SWY 450 18,787 Entertainment 2.58% Walt Disney Co. DIS 540 11,189 Financial - Other 9.99% Charles Schwab Corp. SCH 1,325 20,498 Federal Home Loan Mortgage Corp. FRE 350 22,890 Healthcare (Products) 5.20% Merck & Co. Inc. MRK 320 18,816 Pfizer Inc. PFE 94 3,746 Insurance 2.74% American International Group Inc. AIG 150 11,910 Oil & Gas 4.63% Exxon Mobil Corp. XOM 511 20,082 Online Information 0.96% Yahoo! Inc.* YHOO 236 4,187 Phone Network/ Equipment 5.86% ADC Telecommunications Inc.* ADCT 1,227 5,644 Comverse Technology Inc.* CMVT 600 13,422 Cisco Systems Inc.* CSCO 220 3,984 JDS Uniphase Corp.* JDSU 274 2,392 Retailing 4.41% Home Depot Inc. HD 375 19,129 Semiconductors 5.32% Applied Materials Inc.* AMAT 454 18,205 Broadcom Corp.-Class A* BRCM 119 4,877 Semiconductor Equipment 3.58% Texas Instruments Inc. TXN 555 15,540 Software 2.77% Oracle Corp.* ORCL 871 12,028 Telecommunications 4.35% WorldCom Inc.- MCI Group MCIT 42 533 WorldCom Inc.- WorldCom Group* WCOM 1,302 18,332 Wireless Equipment 2.04% Qualcomm Inc.* QCOM 175 8,837 The accompanying notes are an integral part of the financial statements 15 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL COMMON STOCKS 83.59% (COST $501,747) $362,922 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS (COST $501,747) $362,922 Other Assets Less Liabilities 16.41% $71,222 NET ASSETS 100.00% Equivalent to $8.82 per share on 49,231 Shares of Capital Stock Outstanding $434,144 ================================================================================================================================
*Non-Income Producing AMERISTOCK FOCUSED VALUE FUND SCHEDULE OF INVESTMENTS
MARKET INDUSTRY COMPANY SYMBOL SHARES VALUE - -------------------------------------------------------------------------------------------------------------------------------- Automobile Supply 3.94% Dura Automotive Systems Inc.-Class A* DRRA 29,100 $320,100 Business Services 5.81% Manpower Inc. MAN 8,700 293,277 Remedytemp Inc. -Class A* REMX 12,500 178,000 Financial Services 5.75% ABN AMRO Inc. ABN 24,000 390,720 Berkshire Hathaway Inc. -Class A BRK 1 75,600 Healthcare 4.71% Bristol-Myers Squibb Co. BMY 7,500 382,500 Real Estate 11.16% Grubb & Ellis* GBE 44,000 129,800 Jones Lang LaSalle Inc.* JLL 23,500 424,175 Trammell Crow Co.* TCC 30,100 352,170 Retailing 21.18% Media Arts Group Inc.* MDA 307,180 807,883 Rush Enterprises Inc.* RUSH 37,900 264,921 Shopko Stores Inc.* SKO 68,000 646,000 Services 2.91% Gevity HR GVHR 93,000 236,220 Telecommunications 4.07% Tellabs Inc.* TLAB 22,000 330,660 Transportation 19.11% International Airline Support* YLF 8,000 7,200 KLM Royal Dutch Airlines KLM 54,300 601,644 Midwest Express Holdings Inc.* MEH 64,520 941,992 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL COMMONSTOCKS 78.64% (COST $6,381,706) $6,382,862 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS (COST $6,381,706) $6,382,862 Other Assets Less Liabilities 21.36% 1,733,884 NET ASSETS 100.00% Equivalent to $23.71 per share on 342,378 Shares of Capital Stock Outstanding $8,116,746 ================================================================================================================================
*Non-Income Producing The accompanying notes are an integral part of the financial statements 16 STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2001
- ----------------------------------------------------------------------------------------------------------------------- AMERISTOCK AMERISTOCK AMERISTOCK MUTUAL FUND, LARGE COMPANY FOCUSED INC. GROWTH FUND VALUE FUND - ----------------------------------------------------------------------------------------------------------------------- ASSETS: Investment Securities at Market Value (cost-see below) $1,230,796,799 $362,922 $6,382,862 Cash 647 71,103 1,470,325 Accounts Receivable Investment Securities Sold 88,625,000 - - Fund Shares Sold 8,718,217 1,765 758,769 Dividends 1,035,848 265 - - ----------------------------------------------------------------------------------------------------------------------- Total Assets: 1,329,176,511 436,055 8,611,956 ======================================================================================================================= LIABILITIES: Accounts Payable Investment Securities Purchased 115,278,114 - 481,065 Fund Shares Redeemed 1,772,180 1,510 6,537 Accrued Management Fee 757,706 401 7,608 Accrued Directors Fees 357 - - - ----------------------------------------------------------------------------------------------------------------------- Total Liabilities: 117,808,357 1,911 495,210 ======================================================================================================================= NET ASSETS $1,211,368,154 $434,144 $8,116,746 ======================================================================================================================= NET ASSETS CONSIST OF: Capital Paid In $1,221,836,023 $667,195 $8,276,223 Undistributed Net Investment Income (Loss) 1,465,195 (671) (15,656) Accumulated Net Realized Loss on Investments (1,157,640) (93,555) (144,977) Net Unrealized Appreciation (Depreciation) on Investments Based on Identified Cost (10,775,424) (138,825) 1,156 - ----------------------------------------------------------------------------------------------------------------------- Net Assets $1,211,368,154 $434,144 $8,116,746 ======================================================================================================================= NET ASSET VALUE PER SHARE Net Assets $1,211,368,154 $434,144 $8,116,746 Shares of Capital Stock Outstanding 29,986,070 49,231 342,378 Net Asset Value and Redemption Price per Share $40.40 $8.82 $23.71 - ----------------------------------------------------------------------------------------------------------------------- COST OF INVESTMENTS $1,241,572,223 $501,747 $6,381,706 =======================================================================================================================
The accompanying notes are an integral part of the financial statements 17 STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED DECEMBER 31, 2001
- ----------------------------------------------------------------------------------------------------------------------- AMERISTOCK AMERISTOCK AMERISTOCK MUTUAL FUND, LARGE COMPANY FOCUSED INC. GROWTH FUND VALUE FUND - ----------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividends $9,223,133 $1,089 $18,469 Interest 1,138,177 - - Commission Recapture (Note 7) 21,080 - - - ----------------------------------------------------------------------------------------------------------------------- Total Investment Income 10,382,390 1,089 18,469 ======================================================================================================================= EXPENSES: Management Fee (Note 2) 3,795,407 1,760 34,125 Directors Fee (Note 3) 18,308 - - - ----------------------------------------------------------------------------------------------------------------------- Total Expenses 3,813,715 1,760 34,125 - ----------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) 6,568,675 (671) (15,656) - ----------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss)on Investments 242,489 (41,406) (144,977) Net Change in Unrealized Appreciation (Depreciation) on Investments (35,538,370) (25,521) (228,215) - ----------------------------------------------------------------------------------------------------------------------- Net Realized and Unrealized Gain (Loss) on Investments (35,295,881) (66,927) (373,192) - ----------------------------------------------------------------------------------------------------------------------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ($28,727,206) ($67,598) ($388,848) =======================================================================================================================
The accompanying notes are an integral part of the financial statements 18 AMERISTOCK MUTUAL FUND, INC. STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------- FOR THE SIX MONTHS FOR THE YEAR ENDED ENDED 12/31/01 06/30/00 - ------------------------------------------------------------------------------------------------- FROM OPERATIONS: Net Investment Income (Loss) $6,568,675 $3,944,052 Net Realized Gain (Loss) on Investments 242,489 1,121,069 Net Change in Unrealized Appreciation (Depreciation) on Investments (35,538,370) 30,172,365 - ------------------------------------------------------------------------------------------------- (28,727,206) 35,237,486 DISTRIBUTIONS TO SHAREHOLDERS: Ordinary Income (8,287,230) (1,527,655) Capital Gains (1,121,069) (5,528,805) - ------------------------------------------------------------------------------------------------- (9,408,299) (7,056,460) SHARE TRANSACTIONS: Shares Sold 652,107,845 717,255,245 Shares Issued as Reinvestment of Dividends and Distributions 9,117,512 6,592,550 Cost of Shares Redeemed (167,881,421) (82,528,999) - ------------------------------------------------------------------------------------------------- 493,343,936 641,318,796 NET INCREASE IN NET ASSETS 455,208,431 669,499,822 NET ASSETS: Beginning of Period 756,159,723 86,659,901 - ------------------------------------------------------------------------------------------------- End of Period* $1,211,368,154 $756,159,723 ================================================================================================= *Includes Undistributed Net Investment Income of $1,465,195 $3,183,750 =================================================================================================
The accompanying notes are an integral part of the financial statements 19 AMERISTOCK LARGE COMPANY GROWTH FUND STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------- FOR THE SIX MONTHS FOR THE PERIOD ENDED 12/26/00 (INCEPTION) 12/31/01 TO 06/30/01 - ------------------------------------------------------------------------------------------------------- FROM OPERATIONS: Net Investment Income (Loss) ($671) ($1,521) Net Realized Gain (Loss) on Investments (41,406) (52,149) Net Change in Unrealized Appreciation (Depreciation) on Investments (25,521) (113,304) - ------------------------------------------------------------------------------------------------------- (67,598) (166,974) DISTRIBUTIONS TO SHAREHOLDERS: Ordinary Income - - Capital Gains - - - ------------------------------------------------------------------------------------------------------- - - SHARE TRANSACTIONS: Shares Sold 404,510 1,148,599 Shares Issued as Reinvestment of Dividends and Distributions - - Cost of Shares Redeemed (279,496) (604,897) - ------------------------------------------------------------------------------------------------------- 125,014 543,702 NET INCREASE IN NET ASSETS 57,416 376,728 NET ASSETS: Beginning of Period 376,728 - - ------------------------------------------------------------------------------------------------------- End of Period* $434, 144 $376,728 ======================================================================================================= *Includes Undistributed Net Investment Income (Loss) of ($671) - =======================================================================================================
The accompanying notes are an integral part of the financial statements 20 AMERISTOCK FOCUSED VALUE FUND STATEMENT OF CHANGES IN NET ASSETS
- ----------------------------------------------------------------------------------------------------- FOR THE SIX MONTHS FOR THE PERIOD ENDED 12/26/00 (INCEPTION) 12/31/01 TO 06/30/01 - ----------------------------------------------------------------------------------------------------- FROM OPERATIONS: Net Investment Income (Loss) ($15,656) ($4,236) Net Realized Gain (Loss) on Investments (144,977) 101,902 Net Change in Unrealized Appreciation (Depreciation) on Investments (228,215) 229.371 - ----------------------------------------------------------------------------------------------------- (388,848) 327,037 DISTRIBUTIONS TO SHAREHOLDERS: Ordinary Income - - Capital Gains (97,666) - - ----------------------------------------------------------------------------------------------------- (97,666) - SHARE TRANSACTIONS: Shares Sold 10,146,308 2,449,010 Shares Issued as Reinvestment of Dividends and Distributions 97,494 - Cost of Shares Redeemed (4,144,747) (271,842) - ----------------------------------------------------------------------------------------------------- 6,099,055 2,177,168 NET INCREASE IN NET ASSETS 5,612,541 2,504,205 NET ASSETS: Beginning of Period 2,504,205 - - ----------------------------------------------------------------------------------------------------- End of Period* $8,116,746 $2,504,205 ===================================================================================================== *Includes Undistributed Net Investment Income (Loss) of ($15,656) - =====================================================================================================
The accompanying notes are an integral part of the financial statements 21 AMERISTOCK MUTUAL FUND, INC. FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT THE PERIODS INDICATED:
- ------------------------------------------------------------------------------------------------------------ NET GAINS (LOSSES) ON DISTRIBU- NET ASSET NET SECURITIES DIVIDENDS TIONS NET ASSET VALUE, INVEST- (REALIZED TOTAL FROM (FROM NET (FROM TOTAL VALUE, BEGINNING MENT AND INVESTMENT INVESTMENT CAPITAL DISTRIBU- END OF TOTAL OF PERIOD INCOME UNREALIZED) OPERATIONS INCOME) GAINS) TIONS PERIOD RETURN(1) - ------------------------------------------------------------------------------------------------------------ 7/1/01-12/31/01 $42.18 .27 (1.72) (1.45) (.29) (.04) (.33) $40.40 (3.43)% 6/1/00-6/30/01 34.76 .59 8.90 9.49 (.45) (1.63) (2.08) 42.17 27.82% 6/1/99-6/30/00 38.89 .55 (3.92) (3.37) (.42) (.34) (.76) 34.76 (8.67)% 6/1/98-6/30/99 31.48 .44 7.41 7.85 (.22) (.22) (.44) 38.89 24.94% 6/1/97-6/30/98 25.06 .41 7.26 7.67 (.42) (.83) (1.25) 31.48 30.61% 6/1/96-6/30/97 19.03 .52 5.94 6.46 (.39) (.04) (.43) 25.06 33.95% - ------------------------------------------------------------------------------------------------------------
22
- ------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA RATIO OF RATIO OF RATIO OF RATIO OF EXPENSES TO EXPENSES TO NET INCOME NET INCOME AVERAGE AVERAGE TO AVERAGE TO AVERAGE NET ASSETS NET ASSETS NET ASSETS NET ASSETS NET ASSETS END OF PRIOR TO AFTER PRIOR TO AFTER PORTFOLIO PERIOD REIM- REIM- REIM- REIM- TURNOVER (MILLIONS) BURSEMENT BURSEMENT BURSEMENT BURSEMENT RATE** - ------------------------------------------------------------------------------------------------- 7/1/01-12/31/01 $1,211.37 0.78%* 0.78%* 1.34%* 1.34%* 0.21% 6/1/00-6/30/01 755.90 0.83% 0.83% 1.50% 1.50% 5.97% 6/1/99-6/30/00 86.66 0.99% 0.99% 1.51% 1.51% 31.13% 6/1/98-6/30/99 114.14 0.96% 0.94% 1.20% 1.22% 9.22% 6/1/97-6/30/98 12.75 0.95% 0.94% 1.43% 1.48% 11.85% 6/1/96-6/30/97 6.64 1.06% 0.56% 1.89% 2.39% 21.48% - -------------------------------------------------------------------------------------------------
* Annualized **A portfolio turnover rate is, in general, the percentage computed by taking the lesser of purchases or sales of portfolio securities (excluding securities with a maturity date of one year or less at the time of acquisition) for a period and dividing it by the monthly average of the market value of such securities during the period. Purchases and sales of investment securities (excluding short-term securities) for the six months ended December 31, 2001 were $504,905,556 and $1,874,483, respectively. (1)Total returns would have been lower had various fees not been reimbursed. The accompanying notes are an integral part of the financial statements 23 AMERISTOCK LARGE COMPANY GROWTH FUND FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT THE PERIODS INDICATED:
- ------------------------------------------------------------------------------------------------------------ NET GAINS (LOSSES) ON DISTRIBU- NET ASSET NET SECURITIES DIVIDENDS TIONS NET ASSET VALUE, INVEST- (REALIZED TOTAL FROM (FROM NET (FROM TOTAL VALUE, BEGINNING MENT AND INVESTMENT INVESTMENT CAPITAL DISTRIBU- END OF TOTAL OF PERIOD INCOME UNREALIZED) OPERATIONS INCOME) GAINS) TIONS PERIOD RETURN - ------------------------------------------------------------------------------------------------------------ 7/1/01-12/31/01 $10.81 (.02) (1.97) (1.99) 0.00 0.00 0.00 $8.82 (18.71)% 12/26/00-6/30/01 inception 15.00 (.04) (4.11) (4.15) 0.00 0.00 0.00 10.85 (27.67)% - ------------------------------------------------------------------------------------------------------------
AMERISTOCK FOCUSED VALUE FUND FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT THE PERIODS INDICATED:
- ------------------------------------------------------------------------------------------------------------ NET GAINS (LOSSES) ON DISTRIBU- NET ASSET NET SECURITIES DIVIDENDS TIONS NET ASSET VALUE, INVEST- (REALIZED TOTAL FROM (FROM NET (FROM TOTAL VALUE, BEGINNING MENT AND INVESTMENT INVESTMENT CAPITAL DISTRIBU- END OF TOTAL OF PERIOD INCOME UNREALIZED) OPERATIONS INCOME) GAINS) TIONS PERIOD RETURN - ------------------------------------------------------------------------------------------------------------ 7/1/01-12/31/01 $23.87 (.07) .25 .18 0.00 (.34) (.34) $23.71 0.81% 12/26/00-6/30/01 inception 15.00 (.09) 8.96 8.87 0.00 0.00 0.00 23.87 59.13% - ------------------------------------------------------------------------------------------------------------
24 AMERISTOCK LARGE COMPANY GROWTH FUND FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA RATIO OF RATIO OF RATIO OF RATIO OF EXPENSES TO EXPENSES TO NET INCOME NET INCOME AVERAGE AVERAGE TO AVERAGE TO AVERAGE NET ASSETS NET ASSETS NET ASSETS NET ASSETS NET ASSETS END OF PRIOR TO AFTER PRIOR TO AFTER PORTFOLIO PERIOD REIM- REIM- REIM- REIM- TURNOVER (MILLIONS) BURSEMENT BURSEMENT BURSEMENT BURSEMENT RATE** - ------------------------------------------------------------------------------------------------- 7/1/01-12/31/01 $0.43 1.00%* 1.00%* (0.38)%* (.38%)* 37.57%(1) 12/26/00-6/30/01 inception 0.38 1.00%* 1.00%* (0.58)%* (0.58)%* 88.08% - -------------------------------------------------------------------------------------------------
(1) Purchases and sales of investment securities (excluding short-term securities) for the six months ended December 31, 2001 were $202,505 and $112,670, respectively. The accompanying notes are an integral part of the financial statements AMERISTOCK FOCUSED VALUE FUND FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA RATIO OF RATIO OF RATIO OF RATIO OF EXPENSES TO EXPENSES TO NET INCOME NET INCOME AVERAGE AVERAGE TO AVERAGE TO AVERAGE NET ASSETS NET ASSETS NET ASSETS NET ASSETS NET ASSETS END OF PRIOR TO AFTER PRIOR TO AFTER PORTFOLIO PERIOD REIM- REIM- REIM- REIM- TURNOVER (MILLIONS) BURSEMENT BURSEMENT BURSEMENT BURSEMENT RATE** - ------------------------------------------------------------------------------------------------- 7/1/01-12/31/01 $8.12 1.35%* 1.35%* (0.62)%* (0.62)%* 51.85%(2) 12/26/00-6/30/01 inception 2.50 1.32%* 1.32%* (0.80)%* (0.80)%* 29.80% - -------------------------------------------------------------------------------------------------
*Annualized **A portfolio turnover rate is, in general, the percentage computed by taking the lesser of purchases or sales of portfolio securities (excluding securities with a maturity date of one year or less at the time of acquisition) for a period and dividing it by the monthly average of the market value of such securities during the period. (2) Purchases and sales of investment securities (excluding short-term securities) for the six months ended December 31, 2001 were $6,840,360 and $2,220,428, respectively. The accompanying notes are an integral part of the financial statements 25 NOTES TO FINANCIAL STATEMENTS 1. SIGNIFICANT ACCOUNTING POLICIES The Ameristock Mutual Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company, organized as a corporation under the laws of the State of Maryland on June 15, 1995. The Fund's investment objective is to seek total return through capital appreciation and current income by investing (under normal market conditions) at least 80% of the value of its total assets in equity securities consisting of common stocks. The authorized capital stock of the Fund consists of 100 million shares of common stock, par value $.005 per share. Davis Park Series Trust (the "Trust") is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company organized as a Delaware business trust by a Declaration of Trust dated August 17, 2000. The Trust currently has two active investment portfolios, the Ameristock Large Company Growth Fund and the Ameristock Focused Value Fund, each referred to as a "portfolio" of the Trust. The Ameristock Large Company Growth Fund's investment objective is to seek capital appreciation by principally investing in common stocks of large capitalization companies headquartered in the United States. The Ameristock Focused Value Fund's investment objective is to seek capital appreciation by principally investing in common stocks of companies of all sizes headquartered in the United States. The authorized capital stock of each portfolio consists of an unlimited number of no par value shares of common stock. SECURITY VALUATION Investments in securities are carried at market value. The market quotation used for common stocks, including those listed on those NASDAQ National Market System, is the last sale price on the date on which the valuation is made or, in the absence of sales, at the closing bid price. Over-the-counter securities will be valued on the basis of the bid price at the close of each business day. Short-term investments are valued at amortized cost, which approximates market. The cost of securities sold is determined on the identified cost basis. When marker quotations are not readily available or when events occur that make established valuation methods unreliable, securities of the Fund may be valued at fair value determined in good faith by or under the direction of the Board of Directors/Trustees. Securities for which market quotations are not readily available are 26 valued in good faith by or under direction of the Board of Directors/Trustees. Security transactions are recorded on the dates transactions are entered into (the trades). INCOME Dividend income and distributions to shareholders are recorded on the ex-dividend date. Interest income is recorded as earned. Discounts and premiums on securities purchased are amortized over the life of the respective securities. INCOME TAXES As qualified regulated investment companies under Subchapter M of the Internal Revenue Code, neither the Fund nor the Trust is subject to income taxes to the extent that it distributes all of its taxable income for the fiscal year. It is the policy of the Fund and the Trust to distribute annually, prior to the end of the calendar year, dividends sufficient to satisfy excise tax requirements of the Internal Revenue Service. This Internal Revenue Service requirement may cause an excess of distributions over the book year-end accumulated income. In addition, it is the policy of the Fund and the Trust to distribute annually, after the end of the fiscal year, any remaining net investment income and net realized capital gains. ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. OTHER Generally accepted accounting principles require that permanent financial reporting tax differences relating to shareholders distributions be reclassified to paid in capital or gains/losses. 27 REPURCHASE AGREEMENTS The Ameristock Mutual Fund, Inc. through its custodian, receives delivery of underlying securities, whose market value, including interest, is required to be at least 102% of the resale price. The Fund's adviser is responsible for determining that the value of these underlying securities remains at least equal to 102% of the resale price. If the seller defaults, the Fund would suffer a loss to the extent that the proceeds from the sale of the underlying securities were less than the repurchase price. 2. INVESTMENT ADVISORY AGREEMENT The Fund has entered into an investment advisory agreement with Ameristock Corporation, (the "Advisor"). The Advisor receives from the Fund as compensation for its services to the Fund an annual fee of 1% of the Fund's average daily net assets for the first $100 million in net assets and 0.75% of average daily net assets in excess of $100 million. The Advisor pays all operating expenses of the Fund except for taxes, interest, brokerage commissions and extraordinary litigation expenses. The Advisor received management fees of $3,795,407 for the six months ended December 31, 2001. During the Fund's initial year, the Advisor had paid all Fund expenses. The Trust has entered into an investment advisory agreement with the Advisor for both portfolios. The Advisor receives from the Trust as compensation for its services to the Ameristock Large Company Growth Fund an annual fee of 1% of the portfolio's average daily net assets. The Advisor receives from the Trust as compensation for its services to the Ameristock Focused Value Fund an annual fee of 1.35% of the portfolio's average daily net assets. The Advisor pays all operating expenses of the Trust except for taxes, interest, brokerage commissions and extraordinary litigation expenses. The Advisor received management fees of $1,760 and $34,125 for the Ameristock Large Company Growth Fund and the Ameristock Focused Value Fund, respectively, for the six months ended December 31, 2001. 3. RELATED PARTY TRANSACTIONS Certain owners of the Advisor are also owners and or directors of the Fund and Trust. These individuals may receive benefits from any management fees paid to the Advisor. Shareholders holding more than 5% of the Funds' outstanding shares as of December 31, 2001 constituted 79.59% of the Ameristock Mutual Fund, Inc., 40.33% of the Ameristock Large Company Growth Fund and 53.43% of the Ameristock Focused Value Fund. 28 The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of a fund under section 2(a)(9) of the Investment Company Act of 1940. As of December 31, 2001, Charles Schwab & Co. for the benefit of its customers owned of record in aggregate more than 53% of the Ameristock Mutual Fund, Inc. As of December 31, 2001, National Investor Services Corp. for the benefit of its customers owned of record in aggregate more than 40% and 25% of the Ameristock Large Company Growth Fund and Ameristock Focused Value Fund, respectively. The Directors of the Ameristock Mutual Fund, Inc. receive annual Directors Fees of $12,000. 4. CAPITAL STOCK AND DISTRIBUTION At December 31, 2001, 100 million shares of capital ($.005 par value) were authorized, and paid in capital amounted to $1,221,836,023 for the Ameristock Mutual Fund, Inc. At December 31, 2001, there was an unlimited number of no par value shares of capital authorized for the Ameristock Large Company Growth Fund and Ameristock Focused Value Fund, respectively. Paid in capital amounted to $667,195 and $8,276,233 for the Ameristock Large Company Growth Fund and Ameristock Focused Value Fund, respectively. Transactions in capital stock were as follows:
- ------------------------------------------------------------------------------------------------- AMERISTOCK MUTUAL FUND, INC. FOR THE SIX MONTHS FOR THE YEAR ENDED ENDED 12/31/01 06/30/00 - ------------------------------------------------------------------------------------------------- Shares Sold 16,089,558 17,312,519 Shares Issued in Reinvestment of Dividends and Distributions 225,793 169,867 - ------------------------------------------------------------------------------------------------- Total 16,315,351 17,482,386 Shares Redeemed (4,254,525) (2,049,954) - ------------------------------------------------------------------------------------------------- Net Increase/(Decrease) in Shares 12,060,826 15,432,432 ================================================================================================= Shares Outstanding-Beginning of Period 17,925,244 2,492,812 Shares Outstanding-End of Period 29,986,070 17,925,244 =================================================================================================
- ------------------------------------------------------------------------------------------------- AMERISTOCK LARGE COMPANY FOR THE SIX MONTHS FOR THE PERIOD GROWTH FUND ENDED 12/26/00 (INCEPTION) 12/31/01 TO 6/30/00 - ------------------------------------------------------------------------------------------------- Shares Sold 45,456 85,326 Shares Issued in Reinvestment of Dividends and Distributions - - - ------------------------------------------------------------------------------------------------- Total 45,456 85,326 Shares Redeemed (31,059) (50,492) - ------------------------------------------------------------------------------------------------- Net Increase/(Decrease) in Shares 14,397 34,834 ================================================================================================= Shares Outstanding-Beginning of Period 34,834 - Shares Outstanding-End of Period 49,231 34,834 =================================================================================================
29 4. CAPITAL STOCK AND DISTRIBUTION (CONTINUED)
- ------------------------------------------------------------------------------------------------- AMERISTOCK FOCUSED VALUE FUND FOR THE SIX MONTHS FOR THE PERIOD ENDED 12/26/00 (INCEPTION) 12/31/01 TO 6/30/00 - ------------------------------------------------------------------------------------------------- Shares Sold 428,191 117,166 Shares Issued in Reinvestment of Dividends and Distributions 4,228 - - ------------------------------------------------------------------------------------------------- Total 432,419 117,166 Shares Redeemed (194,951) (12,256) - ------------------------------------------------------------------------------------------------- Net Increase/(Decrease) in Shares 237,468 104,910 ================================================================================================= Shares Outstanding-Beginning of Period 104,910 - Shares Outstanding-End of Period 342,378 104,910 =================================================================================================
5. UNREALIZED APPRECIATION AND DEPRECIATION ON INVESTMENTS
- ------------------------------------------------------------------------------------------------- AMERISTOCK AMERISTOCK AMERISTOCK MUTUAL FUND, LARGE COMPANY FOCUSED AS OF DECEMBER 31, 2001 INC. GROWTH FUND VALUE FUND - ------------------------------------------------------------------------------------------------- Gross Appreciation (excess of value over tax cost) $70,646,223 $11,474 $583,438 Gross Depreciation (excess of tax cost over value) (81,421,647) (150,299) (582,282) - ------------------------------------------------------------------------------------------------- Net Unrealized Appreciation/ (Depreciation) ($10,775,424) ($138,825) $1,156 ================================================================================================= Cost of Investments for Income Tax Purposes $124,157,223 $501,747 $6,381,707 =================================================================================================
6. DISTRIBUTIONS During the six months ended December 31, 2001, the Ameristock Mutual Fund, Inc. paid $9,408,299 in distributions, of which $8,287,230 was paid from net investment income and $1,121,069 was paid from realized short and long-term capital gains. During the six months ended December 31, 2001, the Ameristock Focused Value Fund paid $97,666 in distributions from realized short-term gains. 7. COMMISSION RECAPTURE The Ameristock Mutual Fund, Inc. directed portfolio trades to brokers who reimburse the Fund a portion of the commissions paid on such transactions. For the six months ended December 31, 2001, the Fund received $21,080 from commissions on executions of purchases and sales of the Fund's portfolio investments. 30 INVESTMENT ADVISER Ameristock Corporation P.O. Box 6919 Moraga, California 94570 ADMINISTRATOR, AND BOOKKEEPING AND PRICING AGENT ALPS Mutual Fund Services, Inc. 370 17th Street, Suite 3100 Denver, Colorado 80202 DISTRIBUTOR ALPS Distributors, Inc. 370 17th Street, Suite 3100 Denver, Colorado 80202 CUSTODIAN Firstar Bank, N.A. 425 Walnut Street Cincinnati, Ohio 45202 TRANSFER AGENT Mutual Shareholder Services 8869 Brecksville Road, Suite C Brecksville, Ohio 44141 INDEPENDENT AUDITOR McCurdy & Associates CPA's, Inc. 27955 Clemens Road Westlake, Ohio 44145-1121 LEGAL COUNSEL McDonald, Hopkins, Burke & Haber Co., L.P.A. 2100 Bank One Center 600 Superior Avenue, East Cleveland, Ohio 44114 DIRECTORS-AMERISTOCK MUTUAL FUND, INC. Alev Efendioglu Nicholas Gerber Stephen Marsh Andrew Ngim Steve Wood TRUSTEES-DAVIS PARK SERIES TRUST Alev Efendioglu Nicholas Gerber Stephen Marsh ALPS [GRAPHIC] DISTRIBUTORS, INC. Sponsor and Distributor Must be accompanied or preceded by a current prospectus which contains more information on fees, risks, and expenses. For more information, please call 1(800)394-5064 or visit www.ameristock.com [AMERISTOCK LOGO] P.O. Box 6919 Moraga, California 94570 -----END PRIVACY-ENHANCED MESSAGE-----