N-Q 1 mp63nq200807.htm UNITED STATES

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

FORM N-Q
(AMENDED)

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-09053


The MP 63 Fund, Inc.

(Exact name of registrant as specified in charter)


MP 63 Fund, Inc.

555 Theodore Fremd Ave., Suite B-103

Rye, NY 10580

(Address of principal executive offices)

(Zip code)


MP 63 Fund Inc.

555 Theodore Fremd Ave., Suite B-103

Rye, NY 10580

(Name and address of agent for service)


Registrant's telephone number, including area code: (914) 925-0022


Date of fiscal year end: February 28


Date of reporting period: May 31, 2008



Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5).  The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number.  Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, and 450 Fifth Street, NW, Washington, DC 20549-0609.  The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507.



ITEM 1. SCHEDULE OF INVESTMENTS.



The MP63 Fund, Inc.

 

 

     
    

Schedule of Investments

    

May 31, 2008 (Unaudited)

 Shares/Principal Amount of Assets

 

 Market Value

     

 COMMON STOCKS - 99.37%

  
     

 Automotive Parts- Retail/Wholesale - 0.80%   

  

                    7,600

 

Genuine Parts Co.

 

 $            334,476

     

 Automobile - Manufacturing - 0.92%

  

                    3,800

 

Toyota Motor Corp. (Japan) *

 

               387,790

     

 Banks- Money Center - 1.61%  

  

                  19,900

 

Bank of America Corp.

 

               676,799

     

 Banks - Regional - 2.61%   

  

                  19,300

 

BB&T Corp.

 

               607,371

                  16,230

 

National City Corp.

 

                 94,783

                  30,800

 

Popular, Inc.

 

               335,720

                    1,800

 

US Bancorp

 

                 59,742

    

            1,097,616

 Beverages- Alcoholic/Soft Drink - 2.57%

  

                  12,700

 

Anheuser-Busch Companies, Inc.

 

               729,742

                    6,100

 

Coca-Cola Co.

 

               349,286

    

            1,079,028

 Building Products- Retail/Whole - 1.12%   

  

                    7,300

 

Black & Decker Corp.

 

               472,310

     

 Chemicals- Diversified - 1.04%

  

                  17,900

 

RPM International, Inc.

 

               439,087

     

 Chemicals - Specialty - 3.84%

  

                  17,000

 

Praxair, Inc.

 

            1,616,020

     

 Commercial Services - 2.41%

  

                  22,600

 

Ecolab, Inc.

 

            1,013,158

     

 Communications Equipment - 3.61%

  

                  53,400

 

Nokia Corp. (Finland) ADR

 

            1,516,560

     

 Computer- Mini/Micro - 2.01%  

  

                  18,000

 

Hewlett-Packard Co.

 

               847,080

     

 Containers- Paper/Plastic - 0.92%

  

                  14,600

 

Bemis Co., Inc.

 

               388,360

     

 Cosmetics & Personal Care - 3.79%

  

                  23,700

 

Avon Products, Inc.

 

               925,722

                    9,000

 

Colgate-Palmolive Co.

 

               669,240

    

            1,594,962

 Diversified Operations - 5.74%

  

                    6,200

 

3M Co.

 

               480,872

                  17,400

 

Corning, Inc.

 

               475,716

                  12,700

 

Fortune Brands, Inc.

 

               882,396

                  18,643

 

General Electric Co.

 

               572,713

    

            2,411,697

 Electronic Equipment - 1.79%

  

                  12,900

 

Emerson Electric Co.

 

               750,522

     

 Electronic- Semiconductors - 1.80%

  

                  32,600

 

Intel Corp.

 

               755,668

     

 Finance- Investment Management - 2.11%

  

                    8,755

 

Franklin Resources, Inc.

 

               886,181

     

 Financial Services -  5.06%

  

                    1,600

 

Bank of New York Mellon Corp.

 

                 71,248

                    1,700

 

Cash America International, Inc.

 

                 60,792

                  19,986

 

Countrywide Financial Corp.

 

               105,127

                  17,000

 

H&R Block, Inc.

 

               396,780

                  43,200

 

Paychex, Inc.

 

            1,492,560

    

            2,126,507

 Food- Misc. Preparation - 3.46%

  

                  14,200

 

ConAgra Foods, Inc.

 

               334,836

                  12,700

 

Hormel Foods Corp.

 

               479,933

                    8,300

 

Wrigley WM Jr Co.

 

               640,179

    

            1,454,948

 Insurance- Life/Property/Casual - 5.06%

  

                  25,900

 

AFLAC, Inc.

 

            1,738,667

                    7,800

 

Travelers Companies, Inc.

 

               388,518

    

            2,127,185

 Leisure Products - 1.71%

  

                  15,100

 

Polaris Industries, Inc.

 

               720,572

     

 Machinery - Const./Mining/Farming - 1.42%

  

                  19,400

 

Amcol International Corp.

 

               598,684

     

 Machinery- Electrical Equipment - 5.09%  

  

                  10,100

 

Dover Corp.

 

               546,208

                  33,787

 

Johnson Controls, Inc.

 

            1,150,785

                  12,600

 

Tennant Co.

 

               443,142

    

            2,140,135

 Manufacturing - 3.19%

   

                  14,300

 

Illinois Tool Works, Inc.

 

               767,910

                  11,700

 

Ingersoll-Rand Co.

 

               515,268

                    1,600

 

Pentair, Inc.

 

                 59,888

    

            1,343,066

 Medical Instruments/Products - 2.82%

  

                  23,400

 

Medtronic, Inc.

 

            1,185,678

     

 Medical Drugs - 4.73%

   

                  11,100

 

Abbott Laboratories

 

               625,485

                  13,200

 

Johnson & Johnson

 

               880,968

                  25,000

 

Pfizer, Inc.

 

               484,000

    

            1,990,453

 Oil & Gas- International - 4.02%

  

                  11,200

 

BP Plc (United Kingdom) ADR

 

               812,112

                    9,900

 

Exxon Mobil Corp.

 

               878,724

    

            1,690,836

 Paper & Paper Products - 1.36%

  

                    5,574

 

International Paper Co.

 

               151,724

                    6,600

 

Kimberly Clark Corp.

 

               421,080

    

               572,804

 Publishing- Books/News/Periodic - 0.25%

  

                    3,687

 

Gannett Co., Inc.

 

               106,223

     

 Retail- Apparel/Shoes - 0.66%

  

                  14,377

 

Limited Brands, Inc.

 

               278,626

     

 Retail- Variety Stores - 0.41%

  

                    2,400

 

Costco Wholesale Corp.

 

               171,168

     

 Retail/Wholesale- Building Products - 1.01%

  

                  15,500

 

Home Depot, Inc.

 

               424,080

     

 Services-Prepackaged Software - 3.66%

  

                  54,300

 

Microsoft Corp.

 

            1,537,776

     

 Telecommunications Services - 1.88%

  

                    9,399

 

AT&T Corp.

 

               375,020

                  11,700

 

Centurytel, Inc.

 

               414,297

    

               789,317

 Textile- Apparel/Mill Products - 1.31%

  

                    7,300

 

VF Corp.

 

               552,610

     

 Transportation- Equipment/Leasing - 0.96%

  

                    5,500

 

Ryder Systems, Inc.

 

               403,865

     

 Transportation- Railroads - 1.33%

  

                    6,800

 

Union Pacific Corp. *

 

               559,708

     

 Utility- Electric - 6.57%

   

                  17,700

 

Duke Energy Corp.

 

               327,096

                    9,400

 

Edison International

 

               500,362

                    7,800

 

FPL Group, Inc.

 

               526,656

                  42,600

 

MDU Resources Group, Inc.

 

            1,407,078

    

            2,761,192

 Utility-Gas Distribution -  2.53%

  

                  11,400

 

National Fuel Gas Co.

 

               687,534

                    9,400

 

SCANA Corp.

 

               377,316

    

            1,064,850

 Utility- Water - 2.17%

   

                  53,500

 

Aqua America, Inc.

 

               913,780

     

 Total for Common Stock (Cost $34,368,956) - 99.37%

 

 $       41,781,377

     

 Cash & Equivalents - 0.28%

  

                119,090

 

SEI Daily Income Trust Govt. Bond (Cost $119,090) 2.10%**

               119,090

       
  

Total Investments - 99.65% (Cost $34,488,046) (Note 2)

          41,900,467

  

          

    

   

 

Other Assets Less Liabilities - 0.35%

 

               145,216

  
       
  

Net Assets - 100.00%

 

 $       42,045,683

  
       

 * Non-income producing security.  

    

 ** Variable Rate Security

     

 ADR- American Depository Receipt.

    
       
       

 The MP63 Fund, Inc.

 

 

  
       
    

Notes to Financial Statements

  

 

 

 

 

May 31, 2008 (Unaudited)

  
       

1. SECURITY TRANSACTIONS

    

At May 31, 2008, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $34,488,046 amounted to $7,412,421, which consisted of aggregate gross unrealized  appreciation of $10,156,936 and aggregate gross unrealized depreciation of $2,744,515.

       

2. NEW ACCOUNTING PRONOUNCEMENTS

    

The  Fund  adopted Financial Accounting Standards Board Statement of Financial Accounting  Standards  No. 157, Fair Value Measurements ("FAS 157"), effective January 1, 2008. In  accordance with  FAS 157,  fair value is defined as the price  that  the Fund would receive to sell an asset or payto transfer a liability  in  an orderly transaction between market participants at the measurement date. FAS 157 also establishes a framework for measuring fair value, and a three-level  hierarchy  for fair value measurements based upon the transparency  of  inputs  to  the valuation of an asset or liability. Inputs may be observable  or  unobservable  and refer broadly to the assumptions that market participants  would  use  in pricing the asset or liability. Observable inputs reflect the assumptions  market participants would use in pricing the asset or liability  based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund's own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based  on the best information available in the circumstances. Each investment is assigned a level based upon theobservability of the inputs which are significant  to  the  overall valuation. The three-tier hierarchy of inputs is summarized below:

       

Level 1 - quoted prices in active markets for identical investments

       

Level 2 - other significant observable inputs (including quoted prices for similar investments, interest  rates, prepayment speeds, credit risk, etc.)

       

Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

       

The  inputs  or methodology used for valuing securities are not necessarily an indication of  the risk associated with investing in those securities. Money market securities are valued using amortized cost, in accordance with rules under  the  Investment Company Act of 1940. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained  from a quoted price in an active market, such securities are reflected as Level 2.

       

The following table summarizes the valuation of the Fund's investments by the above fair value hierarchy levels as of May 31, 2008:

       
   

INVESTMENT

OTHER

  
   

IN

FINANCIAL

  
   

SECURITIES

INSTRUMENTS*

  

==========================================================================

Level 1 - Quoted prices

 

$      41,781,377

 $                      -   

  

Level 2 - Other significant observable inputs

              119,090

                         -   

  

Level 3 - Significant unobservable inputs

                        -

                         -   

  

Total                                      

 

$      41,900,467

 $                      -   

  
       

*Other  financial  instruments are derivative instruments not reflected in the Portfolio  of Investments,

such as futures forwards and swap contracts, which  are valued at the unrealized appreciation/

depreciation on the instrument.

    




ITEM 2. CONTROLS AND PROCEDURES.


(a)

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Registrant's filings under the Securities Exchange Act of 1934 and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant's management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio Holdings on Form N-Q, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant's management, including the Registrant's principal executive officer and the Registrant's principal financial officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures. Based on such evaluation, the Registrant's principal executive officer and principal financial officer concluded that the Registrant's disclosure controls and procedures are effective.

(b)

CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the Registrant's internal controls or in other factors that could significantly affect the internal controls subsequent to the date of their evaluation in connection with the preparation of this Quarterly Schedule of Portfolio Holdings on Form N-Q.


ITEM 3. EXHIBITS.


Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.


SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


The MP 63 Fund, Inc.


By /s/Vita Nelson

*Vita Nelson

President


Date July 23, 2008


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By /s/Vita Nelson

*Vita Nelson

President


Date July 23, 2008


By /s/David Fish

*David Fish

Treasurer


Date July 23, 2008



* Print the name and title of each signing officer under his or her signature.