-----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, ShOVFnE6s7SOmK/X+1C9mV8JtqrS+A+tTZ8Vw5RrO0uW53XqngG4xrRoaq2faaEK dzTmvX3KZ5ClVOpXNUfJIQ== 0000912057-02-033470.txt : 20020826 0000912057-02-033470.hdr.sgml : 20020826 20020826134941 ACCESSION NUMBER: 0000912057-02-033470 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020630 FILED AS OF DATE: 20020826 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: 02748089 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 a2088012zn-30d.txt N-30D [LOGO] AMERISTOCK FUNDS ANNUAL REPORT JUNE 30, 2002 AMERISTOCK MUTUAL FUND, INC. AMERISTOCK FOCUSED VALUE FUND TABLE OF CONTENTS MANAGER'S COMMENTARY- AMERISTOCK MUTUAL FUND, INC. 4 MANAGER'S COMMENTARY- AMERISTOCK FOCUSED VALUE FUND 8 DIRECTORS/TRUSTEES AND OFFICERS 12 SCHEDULE OF INVESTMENTS - AMERISTOCK MUTUAL FUND, INC. 14 SCHEDULE OF INVESTMENTS - AMERISTOCK FOCUSED VALUE FUND 16 STATEMENT OF ASSETS AND LIABILITIES 18 STATEMENT OF OPERATIONS 19 STATEMENT OF CHANGES IN NET ASSETS - AMERISTOCK MUTUAL FUND, INC. 20 STATEMENT OF CHANGES IN NET ASSETS - AMERISTOCK FOCUSED VALUE FUND 21 FINANCIAL HIGHLIGHTS - AMERISTOCK MUTUAL FUND, INC. 22 FINANCIAL HIGHLIGHTS - AMERISTOCK FOCUSED VALUE FUND 22 NOTES TO FINANCIAL STATEMENTS 24 INDEPENDENT AUDITORS' REPORT - AMERISTOCK MUTUAL FUND, INC. 29 INDEPENDENT AUDITORS' REPORT - AMERISTOCK FOCUSED VALUE FUND 30 MANAGER'S COMMENTARY AMERISTOCK MUTUAL FUND, INC. The total return for the Ameristock Mutual Fund was -10.19% for the one year period ended June 30, 2002 versus -17.98% for the Standard and Poor's 500 Index for the same period. We outperformed our benchmark, the S&P 500 this fiscal year by 7.79%. This is "yes, but..." investing. Something we do not like to practice. You see it every time someone tells you a horrible story that ends with "...but it could have been worse." "Oh, how?" you answer. "It could have been us!" Excuses not withstanding, we accomplished exactly what we said Ameristock would try to do, make you money when the markets go up and not to lose as much as the broad indexes when they fall. The reason we lost money this year was the bear market in general and specifically the continued decline of any stock associated with technology. Technology remains the Fund's second largest industry, after finance. One reason we did not lose as much as the market was something we did not do. We did not invest in Enron, Worldcom, Xerox, or Tyco. Four rock solid appearing firms that, on closer inspection, turned out to be made of hay. We try to remember every day that risk is a four-letter word and actively look for ways to mitigate its effect on your money. In the December 2001 Semi-Annual statement I mentioned that "we currently see no one industry being very over or under valued". In general, this is still true. However, as the decline in technology has continued since December, we have added to its weight as well as to large pharmaceutical companies. We will add to these sectors if current trends continue. This may have the effect of making our fund category change from large value to large blend. But, you should know that our consistent adherence to bottoms-up fundamental value analysis and our passive approach to investing will NOT change no matter what. 4 The only addition/deletion from the Fund since December was Sears, which was deleted. Sears is a fine old company that sells wonderful name brand products, but for the past ten years its top line sales growth has only been about 3% annually. If we think the market will grow at 7% annually over the next ten years, which is an assumption we use, and we want your performance to at least match that growth, we cannot be investing in firms that are only growing at half that rate. Sears is buying Lands End and has remerchandised their products (a few times) and is more conscious of the bottom line today. However, until they start opening more department stores, we will stay away. IN CLOSING On August 5, 2002 we will be switching transfer agents from Greg Getts, Rita White and the gang at Mutual Shareholder Services to ALPS Mutual Funds Services. Greg has been tremendous in helping us grow over the years and we feel sorry about leaving him. If you are starting a mutual fund, I highly suggest you call him at (440) 922-0066 ext#101. In the meantime, call the 800 number, hit #3 and introduce yourself to the new people at ALPS. I don't know if they purposely lined them up this way but when I reviewed their office in Denver, each person I met was nicer than the next. 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. 2. To request Prospectuses and Applications. 3. If you have a question about your account, want to establish automatic investing, or want to redeem shares. 4. If you have a question about the Fund or have any problems. 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 AMERISTOCK MUTUAL FUND, INC. 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 STANDARD & POOR'S MUTUAL FUND 500 INDEX 31-Aug-95 $ 10,000.00 $ 10,000.00 6/30/1996 $ 12,823.66 $ 12,163.00 6/30/1997 $ 17,253.58 $ 16,382.00 6/30/1998 $ 22,748.36 $ 21,320.00 6/30/1999 $ 28,484.30 $ 26,173.00 6/30/2000 $ 26,483.24 $ 28,070.00 6/30/2001 $ 33,239.54 $ 23,910.00 6/30/2002 $ 29,851.45 $ 19,612.00
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. *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 JUNE 30, 2002
AMERISTOCK MUTUAL FUND, INC. RETURN - ---------------------------- ------ 1 Year -10.19% 5 Years 11.59% Since Inception 8/31/95 17.35%
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. TOP 10 EQUITY HOLDINGS* AS OF JUNE 30, 2002
COMPANY % OF INVESTMENTS - ------- ---------------- Bank of America Corp. 4.19% Washington Mutual Inc. 4.18% Sara Lee Corp. 4.06% Duke Energy Corp. 4.04% Bristol-Myers Squibb Co. 3.67% Pfizer Inc. 3.60% Boeing Corp. 3.51% Dell Computer Corp. 3.50% SBC Communications Inc. 3.46% Du Pont de Nemours & Co. 3.31%
*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. 6 SECTOR PROFILE AS A PERCENT OF NET ASSETS AS OF JUNE 30, 2002 [CHART] Automotive 6.58% Banking 14.36% Capital Goods 5.71% Chemicals & Fertilizer 5.56% Consumer Staples 9.22% Diversified 0.81% Electronics 11.26% Entertainment 0.05% Financial- Other 4.30% Healthcare (Products) 15.14% Insurance 1.44% Oil & Gas 5.50% Retailing 0.33% Software 0.28% Telecommunications 8.09% Utilities 4.05% Commercial Paper 1.09% U.S. Gov't Agency Obligations 6.46%
7 MANAGER'S COMMENTARY AMERISTOCK FOCUSED VALUE FUND The total return for the Ameristock Focused Value Fund was 1.96% for the one year period ended June 30, 2002 versus -8.60% for the Russell 2000 Index for the same period. The reason for our positive return is that the airline companies we bought after 9/11 recovered nicely and the real estate brokers we owned went up. We also got a quick profit from SAB when it announced its intention to purchase Miller Beer from Philip Morris. We had bought SAB one week prior to the announcement. We did not have any special or inside knowledge about the transaction as you can see from our recent purchase of Mutual Risk Management just one month before they declared bankruptcy. Luckily Howard Mah, the Fund's co-manager, bought SAB at the 5% level for the Fund vs. Mutual Risk Management at 1% so the dollar loss equaled the dollar gain. While this was going on we also closed the Fund to new investors and those people who bought the Fund through brokers like TDWaterhouse and Fidelity. I would like to apologize to those investors who purchased the Fund through a broker. We did not intend to create a second class of shareholder. We just wanted to freeze assets in the Fund for a short period while we tried to convert the Fund from an investment company to a stock holding company. We do not have the ability to distinguish a new investor from an existing investor if they buy the Fund through a broker. So, we had to say "no" to all investments via brokers while the Fund was closed. The Fund is now open to ALL investors, old and new, direct and through a broker. The reasons the Fund reopened and we decided not to proceed with a conversion are many, but the one that broke the camel's back was me and my time, or lack of time. I could not give the conversion and the new company 100% of my energy and time without sacrificing the quality of management I give to the Ameristock Mutual Fund. This is a sacrifice I was not willing to make. I am sorry we could not do the conversion. It would have opened up new opportunities for investment in private companies. Luckily the bear market is providing plenty of opportunities today in public companies. We are taking advantage of these opportunities by taking positions in technology companies, which we believe have strong balance sheets like Gateway Computer and Tellabs. 8 I imagine at some point we will close the Fund again because we always want the Fund to be small and nimble but for now, the Ameristock Focused Value Fund is back on track doing what it does best. 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 9 AMERISTOCK FOCUSED VALUE FUND 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-Mar-01 $ 13,086.67 $ 9,350.00 30-Jun-01 $ 15,913.33 $ 10,686.00 30-Sep-01 $ 12,486.67 $ 8,465.00 31-Dec-01 $ 16,042.33 $ 10,249.00 31-Mar-02 $ 18,315.72 $ 10,657.00 30-Jun-02 $ 16,225.01 $ 9,767.00
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. *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 JUNE 30, 2002
AMERISTOCK FOCUSED VALUE FUND RETURN - ------------------ ------ 1 Year 1.96% Since Inception 12/26/00 41.24%
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. TOP 10 EQUITY HOLDINGS* AS OF JUNE 30, 2002
COMPANY % OF INVESTMENTS - ------- ---------------- Bristol-Myers Squibb Co. 11.90% Gateway Inc. 10.49% Tellabs Inc. 9.60% South African Breweries 6.87% Radian Group Inc. 6.65% PMI Group Inc. 6.63% Media Arts Group Inc. 6.58% Manpower Inc. 5.48% MGIC Investment Corp. 4.91% Remedytemp Inc. - Class A 4.54%
*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. 10 SECTOR PROFILE AS A PERCENT OF NET ASSETS AS OF JUNE 30, 2002 [CHART] Business Services 9.54% Consumer Staples 7.52% Financial Services 4.31% Healthcare 11.34% Insurance 17.32% Real Estate 6.48% Retailing 6.27% Services 1.01% Technology 9.99% Telecommunications 9.14% Transportation 7.93% Corporate Bond 4.39% Other Assets in Excess Liabilities 4.76%
11 DIRECTORS/TRUSTEES AND OFFICERS The business and affairs of The Ameristock Mutual Fund, Inc. (the "Fund") are managed under the direction of the Fund's Board of Directors in accordance with the laws of the State of Maryland. The business and affairs of Davis Park Series Trust (the "Trust"), of which Ameristock Focused Value Fund is the only portfolio fund, are managed under the direction of the Trust's Board of Trustees in accordance with the laws of the State of Delaware and the Agreement and Declaration of Trust. Information pertaining to the directors/trustees and officers of the Fund and Trust is set forth below. Directors/trustees who are not deemed to be "interested persons" of the Fund/Trust as defined in the Investment Company Act of 1940 (the "1940 Act") are referred to as "Independent Directors/Trustees." Directors/trustees who are deemed to be interested persons of the Fund/Trust as defined in the 1940 Act are referred to as "Interested Directors/Trustees." The Fund's and Trust's Statement of Additional Information includes additional information about the directors/trustees and is available upon request by calling toll free 1-800-394-5064.
NUMBER OF TERM OF PORTFOLIOS IN OTHER POSITION(S) OFFICE AND FUND COMPLEX DIRECTORSHIPS HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY HELD BY NAME, ADDRESS, AND AGE(1) THE FUNDS TIME SERVED(2) DURING PAST 5 YEARS DIRECTOR/TRUSTEE(3) DIRECTOR/TRUSTEE(4) - ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT DIRECTORS/TRUSTEES Alev Efendioglu, PhD. (60) Director of Ameristock Professor of Management and 2 0 Ameristock & since 1995; Information Systems, School of Trustee Davis Park Business and Management, of since 2000 University of San Francisco, Davis Park (1977-Present). Stephen J. Marsh (49) Director of Ameristock Senior-Vice-President with FMV 2 0 Ameristock & since 1995; Opinions, Inc. (1998-Present). Trustee Davis Park Managing Director, The Mentor of since 2000 Group (1991-1998). Davis Park Steven A. Wood (53) Director of Since 2001 Chief Economist, Financial 1 0 Ameristock Oxygen (capital markets technology company) since February, 2001. Senior Economist, Bank of America Securities (1985-2000) INTERESTED DIRECTORS/TRUSTEES Nicholas D. Gerber (40)(5) Chairman & Ameristock President, Ameristock 2 0 President of since 1995; Corporation, Portfolio Manager each Fund; Davis Park of each Fund Director of since 2000 Ameristock & Trustee of Davis Park Andrew Ngim (42)(5) Director of Since 1995 Managing Director, Ameristock 1 0 Ameristock Corporation, since 1999. Benefits Consultant with PriceWaterhouseCoopers (1994-1999). OFFICERS Howard Mah (38) Secretary of Ameristock Portfolio Manager, Ameristock N/A N/A 1320 Harbor Bay Parkway Ameristock & since 1995; Focused Value Fund, since 2000. Suite 145 Davis Park Davis Park Previously a tax and financial Alameda, CA 94502 since 2000 consultant in private practice.
(1) Each director/trustee may be contacted by writing to the director/trustee, c/o Ameristock Funds, 1320 Harbor Bay Parkway, Suite 145, Alameda, CA 94502. (2) Each director/trustee holds office for an indefinite term until the earlier of (i) the election of his successor or (ii) the date the director/trustee dies, resigns or is removed. (3) The Fund Complex includes funds with a common investment adviser or an adviser which is an affiliated person. There are currently two Funds in the Fund Complex. (4) Directorships of companies required to report to the Securities and Exchange Commission under the Securities Exchange Act of 1934 (i.e., "public companies") or other investment companies registered under the 1940 Act. (5) Nicholas D. Gerber and Andrew Ngim are "interested persons" by reason of their positions as Chairman and Managing Director, respectively, of the Investment Adviser. 12 AMERISTOCK MUTUAL FUND, INC. SCHEDULE OF INVESTMENTS
SHARES OR PRINCIPAL MARKET INDUSTRY COMPANY SYMBOL AMOUNT VALUE - ------------------------------------------------------------------------------------------------- COMMON STOCKS AUTOMOTIVE 6.58% Ford Motor Co. F 3,008,242 $48,131,872 General Motors Corp. GM 907,520 48,506,944 BANKING 14.36% Bank of America Corp. BAC 876,377 61,661,886 CitiGroup Inc. C 279,816 10,842,870 PNC Financial Services PNC 857,686 44,839,824 Wachovia Corp. WB 838,300 32,006,294 Washington Mutual Inc. WM 1,659,000 61,565,490 CAPITAL GOODS 5.71% Boeing Co. BA 1,146,960 51,613,200 Caterpillar Inc. CAT 335,400 16,417,830 General Electric Co. GE 545,569 15,848,779 CHEMICALS & FERTILIZER 5.56% Dow Chemical Co. DOW 956,880 32,897,534 Du Pont de Nemours & Co. DD 1,096,600 48,689,040 CONSUMER STAPLES 9.22% Albertsons Inc. ABS 474,500 14,453,270 Coca-Cola Co. KO 50,380 2,821,280 JM Smucker Co. SJM 4,792 163,551 McDonalds Corp. MCD 1,230,700 35,013,415 Pepsico Inc. PEP 36,960 1,781,472 Procter & Gamble Co. PG 239,600 21,396,280 Sara Lee Corp. SLE 2,896,800 59,789,952 DIVERSIFIED 0.81% 3M Co. MMM 96,260 11,839,980 ELECTRONICS 11.26% Agilent Technologies Inc.* A 807,200 19,090,280 Dell Computer Corp.* DELL 1,971,700 51,540,238 Hewlett Packard Co. HWP 990,600 15,136,368 Intel Corp. INTC 811,160 14,819,893 International Business Machines IBM 547,600 39,427,200 Texas Instruments Inc. TXN 1,066,000 25,264,200 ENTERTAINMENT 0.05% Walt Disney Co. DIS 39,070 738,423 FINANCIAL-OTHER 4.30% Fannie Mae FNM 625,370 46,121,038 Merrill Lynch & Co. MER 420,000 17,010,000 HEALTHCARE (PRODUCTS) 15.14% Abbott Laboratories ABT 321,060 12,087,909 Bristol-Myers Squibb Co. BMY 2,101,740 54,014,718 Johnson & Johnson JNJ 292,680 15,295,457 Merck & Co. Inc. MRK 929,940 47,092,162 Pfizer Inc. PFE 1,513,680 52,978,800 Wyeth WYE 797,800 40,847,360
The accompanying notes are an integral part of the financial statements 13
SHARES OR PRINCIPAL MARKET INDUSTRY COMPANY SYMBOL AMOUNT VALUE - ------------------------------------------------------------------------------------------------- INSURANCE 1.44% Allstate Corp. ALL 536,600 19,843,468 American International Group AIG 19,953 1,361,393 OIL & GAS 5.50% BP Amoco (ADR) BPA 542,308 27,381,131 ChevronTexaco Corp. CVX 260,114 23,020,089 Exxon Mobil Corp. XOM 743,200 30,411,744 RETAILING 0.33% Home Depot Inc. HD 53,595 1,968,544 Wal-Mart Stores Inc. WMT 53,300 2,932,033 SOFTWARE 0.28% Microsoft Corp.* MSFT 73,780 4,035,766 TELE- COMMUNICATIONS 8.09% AT&T Corp. T 1,095,029 11,716,810 AT&T Wireless Services Inc.* AWE 21,230 124,196 BellSouth Corp. BLS 764,800 24,091,200 SBC Communications Inc. SBC 1,668,343 50,884,462 Verizon Corp. VZ 794,809 31,911,581 UTILITIES 4.05% Duke Energy Corp. DUK 1,912,333 59,473,556 - ------------------------------------------------------------------------------------------------- TOTAL COMMON STOCKS 92.68% (COST $1,515,600,836) $1,360,900,782 - ------------------------------------------------------------------------------------------------- COMMERCIAL PAPER Conoco Inc. 1.95% Due 07/10/2002 $4,000,000 $3,997,616 Phillips Petroleum 2.00% Due 07/05/2002 5,000,000 4,998,333 Texas Utilities 2.10% Due 07/03/2002 4,000,000 3,999,066 Washington Mutual 1.90% Due 07/08/2002 3,000,000 2,998,574 - ------------------------------------------------------------------------------------------------- TOTAL COMMERCIAL PAPER 1.09% (COST $15,993,589) $15,993,589 - ------------------------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS Federal Home Loan Bank Discount Note 1.40% Due 07/01/2002 $94,894,000 $94,886,619 - ------------------------------------------------------------------------------------------------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 6.46% (COST $94,886,619) $94,886,619 - ------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS 100.23% (COST $1,626,481,044) $1,471,780,990 Liabilities in Excess of Other Assets -0.23% ($3,395,715) NET ASSETS 100.00% Equivalent to $37.57 per share on 39,083,090 Shares of Capital Stock Outstanding $1,468,385,275 =================================================================================================
ADR-American Depositary Receipt * Securities on which no cash dividends were paid during the preceding twelve (12) months. The accompanying notes are an integral part of the financial statements 14 AMERISTOCK FOCUSED VALUE FUND SCHEDULE OF INVESTMENTS
SHARES OR PRINCIPAL MARKET INDUSTRY COMPANY SYMBOL AMOUNT VALUE - ------------------------------------------------------------------------------------------------- COMMON STOCKS BUSINESS SERVICES 9.54% Manpower Inc. MAN 51,500 $1,892,625 Remedytemp Inc. -Class A* REMX 86,100 1,567,020 CONSUMER STAPLES 7.52% International Absorbents Inc.* IABI 140,800 356,224 South African Breweries SBWUY 300,000 2,371,560 FINANCIAL SERVICES 4.31% ABN AMRO Inc. ABN 82,888 1,497,786 Berkshire Hathaway Inc. -Class A* BRK 1 66,800 HEALTHCARE 11.34% Bristol-Myers Squibb Co. BMY 160,000 4,112,000 INSURANCE 17.32% MGIC Investment Corp. MTG 25,000 1,695,000 PMI Group Inc. PMI 60,000 2,292,000 Radian Group Inc. RDN 47,000 2,295,950 REAL ESTATE 6.48% Grubb & Ellis* GBE 334,000 831,660 Trammell Crow Co.* TCC 105,000 1,517,250 RETAILING 6.27% Media Arts Group Inc.* MDA 535,080 2,274,090 SERVICES 1.01% Gevity HR GVHR 93,000 368,280 TECHNOLOGY 9.99% Gateway Inc.* GTW 816,000 3,623,040 TELE- COMMUNICATIONS 9.14% Tellabs Inc.* TLAB 535,000 3,317,000 TRANSPORTATION 7.93% International Airline Support* YLF 502,088 579,912 KLM Royal Dutch Airlines KLM 119,300 1,443,530 Midwest Express Holdings Inc.* MEH 64,520 851,664 - ----------------------------------------------------------------------------------------------- TOTAL COMMON STOCKS 90.85% (COST $36,956,207) $32,953,391 - -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements 15
SHARES OR PRINCIPAL MARKET INDUSTRY COMPANY AMOUNT VALUE - ------------------------------------------------------------------------------------------------- CORPORATE BOND RETAILING 2.65% Fleming Companies Inc. 10.625% Due 7/31/2007 $500,000 $492,500 Gap Stores Inc., 6.90% Due 9/15/2007 200,000 182,737 Levi Strauss & Co. 11.625% Due 01/15/2008 300,000 286,500 TELE- COMMUNICATIONS 0.85% Qwest Capital Funding 7.75% Due 08/15/2006 500,000 307,500 TRANSPORTATION 0.89% Sea Containers Ltd.-Class A 9.50% Due 07/01/2003 325,000 321,750 - ----------------------------------------------------------------------------------------------- TOTAL CORPORATE BOND 4.39% (COST $1,734,010) $1,590,987 - ----------------------------------------------------------------------------------------------- TOTAL INVESTMENTS 95.24% (COST $38,690,217) $34,544,378 Other Assets Less Liabilities 4.76% 1,728,327 NET ASSETS 100.00% Equivalent to $23.98 per share on 1,512,470 Shares of Capital Stock Outstanding $36,272,705 ===============================================================================================
* Securities on which no cash dividends were paid during the preceding twelve (12) months. The accompanying notes are an integral part of the financial statements 16 STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 2002
AMERISTOCK AMERISTOCK MUTUAL FUND, FOCUSED INC. VALUE FUND - -------------------------------------------------------------------------------- ASSETS: Investment Securities at Market Value (cost -see below) $1,471,780,990 $34,544,378 Cash 667,020 456,520 Accounts Receivable Investment Securities Sold -- 1,304,396 Fund Shares Sold 2,030,570 44,949 Dividends 1,425,827 16,568 Interest 633 71,552 Other Assets -- 2,009 - -------------------------------------------------------------------------------- Total Assets: 1,475,905,040 36,440,372 ================================================================================ LIABILITIES: Accounts Payable Fund Shares Redeemed 6,648,670 124,083 Accrued Management Fee 868,017 43,584 Accrued Director's Fees 3,078 -- - -------------------------------------------------------------------------------- Total Liabilities: 7,519,765 167,667 ================================================================================ NET ASSETS $1,468,385,275 $36,272,705 ================================================================================ NET ASSETS CONSIST OF: Capital Paid In $1,594,436,306 $38,735,907 Accumulated Undistributed Net Investment Income 10,812,574 -- Accumulated Net Realized Gain on Investments 17,836,449 1,682,637 Net Unrealized Appreciation (Depreciation) on Investments Based on Identified Cost (154,700,054) (4,145,839) - -------------------------------------------------------------------------------- Net Assets $1,468,385,275 $36,272,705 ================================================================================ NET ASSET VALUE PER SHARE Net Assets $1,468,385,275 $36,272,705 Shares of capital stock outstanding 39,083,090 1,512,470 Net asset value per share $37.57 $23.98 Redemption price per share (Note 8) -- $23.74 - -------------------------------------------------------------------------------- COST OF INVESTMENTS $1,626,481,044 $38,690,217 ================================================================================
The accompanying notes are an integral part of the financial statements 17 STATEMENT OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 2002
AMERISTOCK AMERISTOCK MUTUAL FUND, FOCUSED INC. VALUE FUND - ------------------------------------------------------------------------------ INVESTMENT INCOME: Dividends $23,065,053 $75,651 Interest 2,096,099 79,277 Other Income (Note 7) 43,330 -- - ------------------------------------------------------------------------------ Total Investment Income 25,204,482 154,928 ============================================================================== EXPENSES: Management Fee (Note 2) 9,252,398 277,928 Directors Fee (Note 3) 36,030 -- - ------------------------------------------------------------------------------ Total Expenses 9,288,428 277,928 ============================================================================== NET INVESTMENT INCOME (LOSS) 15,916,054 (123,000) ============================================================================== REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain on Investments 19,236,578 1,805,637 Net Change in Unrealized Appreciation (Depreciation) on Investments (179,463,000) (4,375,210) - ------------------------------------------------------------------------------ Net Realized and Unrealized Gain (Loss) on Investments (160,226,422) (2,569,573) - ------------------------------------------------------------------------------ NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ($144,310,368) ($2,692,573) ==============================================================================
The accompanying notes are an integral part of the financial statements 18 AMERISTOCK MUTUAL FUND, INC. STATEMENT OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------- FOR THE YEAR FOR THE YEAR ENDED ENDED 06/30/02 06/30/01 - ---------------------------------------------------------------------------- FROM OPERATIONS: Net Investment Income $15,916,054 $3,944,052 Net Realized Gain on Investments 19,236,578 1,121,069 Net Change in Unrealized Appreciation (Depreciation) on Investments (179,463,000) 30,172,365 - ---------------------------------------------------------------------------- (144,310,368) 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 1,265,257,917 717,255,245 Shares Issued as Reinvestment of Dividends and Distributions 9,117,512 6,592,550 Cost of Shares Redeemed (408,431,210) (82,528,999) - ---------------------------------------------------------------------------- 865,944,219 641,318,796 NET INCREASE IN NET ASSETS 712,225,552 669,499,822 NET ASSETS: Beginning of Period 756,159,723 86,659,901 - ---------------------------------------------------------------------------- End of Period* $1,468,385,275 $756,159,723 ============================================================================ *Includes Accumulated Undistributed Net Investment Income of $10,812,574 $3,183,750 ============================================================================
The accompanying notes are an integral part of the financial statements 19 AMERISTOCK FOCUSED VALUE FUND STATEMENT OF CHANGES IN NET ASSETS
- ----------------------------------------------------------------------------- FOR THE YEAR FOR THE PERIOD ENDED 12/26/00 (INCEPTION) 06/30/02 TO 06/30/01 - ----------------------------------------------------------------------------- FROM OPERATIONS: Net Investment Loss ($123,000) ($4,236) Net Realized Gain on Investments 1,805,637 101,902 Net Change in Unrealized Appreciation (Depreciation) on Investments (4,375,210) 229,371 - ----------------------------------------------------------------------------- (2,692,573) 327,037 DISTRIBUTIONS TO SHAREHOLDERS: Ordinary Income -- -- Capital Gains (97,666) -- - ----------------------------------------------------------------------------- (97,666) -- SHARE TRANSACTIONS: Shares Sold 65,816,959 2,449,010 Shares Issued as Reinvestment of Dividends and Distributions 97,494 -- Cost of Shares Redeemed (29,355,714) (271,842) - ----------------------------------------------------------------------------- 36,558,739 2,177,168 NET INCREASE IN NET ASSETS 33,768,500 2,504,205 NET ASSETS: Beginning of Period 2,504,205 -- - ----------------------------------------------------------------------------- End of Period $36,272,705 $2,504,205 =============================================================================
The accompanying notes are an integral part of the financial statements 20 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 NET ASSETS VALUE, INVEST- (REALIZED TOTAL FROM (FROM NET (FROM TOTAL VALUE, END OF BEGINNING MENT AND INVESTMENT INVESTMENT CAPITAL DISTRIBU- END OF TOTAL PERIOD OF PERIOD INCOME UNREALIZED) OPERATIONS INCOME) GAINS) TIONS PERIOD RETURN(1) (MILLIONS) - ----------------------------------------------------------------------------------------------------------------------- 7/1/01-6/30/02 $42.18 .53 (4.81) (4.28) (.29) (.04) (.33) $37.57 (10.19)% $1,468.39 7/1/00-6/30/01 34.76 .59 8.91 9.50 (.45) (1.63) (2.08) 42.18 27.85% 756.16 7/1/99-6/30/00 38.89 .55 (3.92) (3.37) (.42) (.34) (.76) 34.76 (8.67)% 86.66 7/1/98-6/30/99 31.48 .44 7.41 7.85 (.22) (.22) (.44) 38.89 24.94% 114.14 7/1/97-6/30/98 25.06 .41 7.26 7.67 (.42) (.83) (1.25) 31.48 30.61% 12.75 - ----------------------------------------------------------------------------------------------------------------------- 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 PRIOR TO AFTER PRIOR TO AFTER PORTFOLIO REIM- REIM- REIM- REIM- TURNOVER BURSEMENT BURSEMENT BURSEMENT BURSEMENT RATE** - ------------------------------------------------------------------------------- 7/1/01-6/30/02 0.77% 0.77% 1.31% 1.31% 13.71%(2) 7/1/00-6/30/01 0.83% 0.83% 1.50% 1.50% 5.97% 7/1/99-6/30/00 0.99% 0.99% 1.51% 1.51% 31.13% 7/1/98-6/30/99 0.96% 0.94% 1.20% 1.22% 9.22% 7/1/97-6/30/98 0.95% 0.94% 1.43% 1.48% 11.85% - --------------------------------------------------------------------------------
AMERISTOCK FOCUSED VALUE 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 NET ASSETS VALUE, INVEST- (REALIZED TOTAL FROM (FROM NET (FROM TOTAL VALUE, END OF BEGINNING MENT AND INVESTMENT INVESTMENT CAPITAL DISTRIBU- END OF TOTAL PERIOD OF PERIOD INCOME UNREALIZED) OPERATIONS INCOME) GAINS) TIONS PERIOD RETURN (MILLIONS) - ----------------------------------------------------------------------------------------------------------------------- 7/1/01-06/30/02 $23.87 (.15) .60 .45 0.00 (.34) (.34) $23.98 1.96% $36.27 12/26/00-6/30/01 inception 15.00 (.09) 8.96 8.87 0.00 0.00 0.00 23.87 59.13% 2.50 - ----------------------------------------------------------------------------------------------------------------------- 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 PRIOR TO AFTER PRIOR TO AFTER PORTFOLIO REIM- REIM- REIM- REIM- TURNOVER BURSEMENT BURSEMENT BURSEMENT BURSEMENT RATE** - ------------------------------------------------------------------------------- 7/1/01-06/30/02 1.35% 1.35% (0.59)% (0.59)% 79.25%(3) 12/26/00-6/30/01 inception 1.35%* 1.35%* (0.80)%* (0.80)%* 29.80% - -------------------------------------------------------------------------------
*Annualized (1) Total returns would have been lower had various fees not been reimbursed. ** 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 year ended June 30, 2002 were $1,015,244,639 and $150,901,406, respectively. (3) Purchases and sales of investment securities (excluding short-term securities) for the year ended June 30, 2002 were $48,395,523 and $13,431,281, respectively. The accompanying notes are an integral part of the financial statements 21 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 open-end management investment company organized as a Delaware business trust by a Declaration of Trust dated August 17, 2000. The Trust currently has one active investment portfolio, the Ameristock Focused Value Fund, referred to as a "portfolio" of the Trust. 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 the portfolio consists of an un-limited number of no par value shares of common stock. The Ameristock Focused Value Fund is considered a "non-diversified" fund. 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 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). 22 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. 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. 23 2. INVESTMENT ADVISERY AGREEMENT The Fund has entered into an investment advisery agreement with Ameristock Corporation, (the "Adviser"). The Adviser 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 Adviser pays all operating expenses of the Fund except for taxes, interest, brokerage commissions, non-interested directors fees and extraordinary expenses. The Adviser earned management fees of $9,252,398 for the Fund for the year ended June 30, 2002. During the Fund's initial year, the Adviser had paid all Fund expenses. The Trust has entered into an investment advisery agreement with the Adviser for the portfolio. The Adviser 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 Adviser pays all operating expenses of the Trust except for taxes, interest, brokerage commissions and extraordinary litigation expenses. The Adviser earned management fees of $277,928 for the Ameristock Focused Value Fund for the year ended June 30, 2002. 3. RELATED PARTY TRANSACTIONS Certain owners of the Adviser are also owners and or directors of the Fund and Trust. These individuals may receive benefits from any management fees paid to the Adviser. Shareholders holding more than 5% of the Funds' outstanding shares as of June 30, 2002 constituted 48% of the Ameristock Mutual Fund, Inc., and 59% of the Ameristock Focused Value Fund, respectively. 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 June 30, 2002, Charles Schwab & Co. for the benefit of its customers owned of record in aggregate more than 54% of the Ameristock Mutual Fund, Inc. As of June 30, 2002, National Financial Services Corp. for the benefit of its customers owned of record in aggregate more than 42% of the Ameristock Focused Value Fund. The Directors of the Fund who are employees or Directors of the Investment Adviser receive no compensation from the Fund. Each of the independent directors is paid $3,000 for each Board meeting he attends and is reimbursed for the expenses of attending meetings. 24 4. CAPITAL STOCK AND DISTRIBUTION At June 30, 2002, 100 million shares of capital ($.005 par value) were authorized, and paid in capital amounted to $1,594,436,306 for the Ameristock Mutual Fund, Inc. At June 30, 2002, there was an unlimited number of no par value shares of capital authorized for the Ameristock Focused Value Fund and paid in capital amounted to $38,735,907. Transactions in capital stock were as follows:
AMERISTOCK MUTUAL FUND, INC. FOR THE YEAR FOR THE YEAR ENDED ENDED 06/30/02 06/30/01 - ------------------------------------------------------------------------------------------ Shares Sold 31,227,776 17,312,519 Shares Issued in Reinvestment of Dividends and Distributions 225,793 169,867 - ------------------------------------------------------------------------------------------ Total 31,453,569 17,482,386 Shares Redeemed (10,295,723) (2,049,954) - ------------------------------------------------------------------------------------------ Net Increase in Shares 21,157,846 15,432,432 ========================================================================================== Shares Outstanding-Beginning of Period 17,925,244 2,492,812 Shares Outstanding-End of Period 39,083,090 17,925,244 ==========================================================================================
AMERISTOCK FOCUSED VALUE FUND FOR THE YEAR FOR THE PERIOD ENDED 12/26/00 (INCEPTION) 06/30/02 TO 06/30/01 - ------------------------------------------------------------------------------------------ Shares Sold 2,579,658 117,166 Shares Issued in Reinvestment of Dividends and Distributions 4,228 -- - ------------------------------------------------------------------------------------------ Total 2,583,886 117,166 Shares Redeemed (1,176,326) (12,256) - ------------------------------------------------------------------------------------------ Net Increase in Shares 1,407,560 104,910 ========================================================================================== Shares Outstanding-Beginning of Period 104,910 -- Shares Outstanding-End of Period 1,512,470 104,910 ==========================================================================================
5. UNREALIZED APPRECIATION AND DEPRECIATION ON INVESTMENTS
- ------------------------------------------------------------------------------------------ AMERISTOCK AMERISTOCK MUTUAL FUND, FOCUSED AS OF JUNE 30, 2002 INC. VALUE FUND - ------------------------------------------------------------------------------------------ Gross Appreciation (excess of value over tax cost) $64,021,641 $2,323,184 Gross Depreciation (excess of tax cost over value) (218,721,695) (6,469,023) - ------------------------------------------------------------------------------------------ Net Unrealized Appreciation/(Depreciation) (154,700,054) (4,145,839) ========================================================================================== Cost of Investments for Income Tax Purposes $1,626,841,044 $38,690,217 ==========================================================================================
25 6. DISTRIBUTIONS During the year ended June 30, 2002, 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 year ended June 30, 2002, the Ameristock Focused Value Fund paid $97,666 in distributions from realized short-term gains. 7. OTHER INCOME The Ameristock Mutual Fund, Inc. directed portfolio trades to brokers who make payments to the Fund for directing such trades. For the year ended June 30, 2002, the Fund received $43,330 from such payments. 8. REDEMPTION FEE A redemption fee of 1% payable to and retained by Ameristock Focused Value Fund is imposed on any redemption of shares within three years of the date of purchase. The 1% fee is imposed on the net asset value of the redeemed shares at the time of purchase. No redemption fee will be imposed on shares acquired through reinvestment of dividends or capital gain distributions or on increases in the net asset value of an investor's shares above the net asset value at the time of purchase. In determining whether a redemption fee is applicable to a redemption, the calculation will be made in a manner that results in the lowest possible rate. It will be assumed that the redemption is made first of amounts representing shares acquired pursuant to the reinvestment of dividends and distributions; then of amounts representing the increase in net asset value of shares above the total amount of payments for the purchase of shares made during the preceding three years; then of amounts representing shares purchased more than three years prior to the redemption; and finally, of amounts representing the cost of shares purchased within three years prior to the redemption. No redemption fees are payable by shareholders of Ameristock Mutual Fund, Inc. 9. SHAREHOLDER TAX INFORMATION (UNAUDITED) During the fiscal year ended June 30, 2002, 100% and 100% of the dividends paid by the Ameristock Mutual Fund, Inc. and Ameristock Focused Value Fund from net investment income, respectively, qualified for the corporate dividends received deduction. 26 AMERISTOCK MUTUAL FUND, INC. INDEPENDENT AUDITORS' REPORT To The Shareholders and Board of Directors Ameristock Mutual Fund: We have audited the accompanying statement of assets and liabilities of Ameristock Mutual Fund, including the schedule of portfolio investments, as of June 30, 2002, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of investments and cash held by the custodian as of June 30, 2002 by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Ameristock Mutual Fund as of June 30, 2002, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. McCurdy & Associates CPA's, Inc. Westlake, Ohio July 12, 2002 27 AMERISTOCK FOCUSED VALUE FUND INDEPENDENT AUDITORS' REPORT To The Shareholders and Board of Trustees Davis Park Series Trust: We have audited the accompanying statement of assets and liabilities of Davis Park Series Trust (comprising Ameristock Focused Value Fund), including the schedule of portfolio investments, as of June 30, 2002, and the related statement of operations for the year then ended, the statement of changes in net assets, and the financial highlights for the year then ended, and the period from December 26, 2000 (commencement of operations) to June 30, 2001 in the period then ended. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2002, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Ameristock Focused Value Fund of the Davis Park Series Trust as of June 30, 2002, the results of its operations for the year then ended, the changes in its net assets, and the financial highlights for the year then ended, and the period from December 26, 2000 (commencement of operations) to June 30, 2001 in the period then ended, in conformity with accounting principles generally accepted in the United States of America. McCurdy & Associates CPA's, Inc. Westlake, Ohio July 12, 2002 28 INVESTMENT ADVISER Ameristock Corporation 1320 Harbor Bay Parkway, Suite 145 Alameda, California 94502 ADMINISTRATOR, BOOKKEEPING AND PRICING AGENT AND TRANSFER 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 U.S. Bancorp 425 Walnut Street Cincinnati, Ohio 45202 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 [LOGO ALPS 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 [LOGO AMERISTOCK FUNDS] PMB 613 303 16th Street, Suite #016 Denver, CO 80202-5657 -----END PRIVACY-ENHANCED MESSAGE-----