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(2) AVAILABLE-FOR-SALE SECURITIES

6 Months Ended

Jun. 30, 2011

(2) AVAILABLE-FOR-SALE SECURITIES

The Company uses the historical cost method in the determination of its realized and unrealized gains and losses. The following tables summarize the Company’s investments as of:

Summary of Available for Sale Securities as of June 30, 2011 (Unaudited)

Type of Security	Market Value		Cost of Securities		Net Unrealized Gain		Unrealized Gains		Unrealized Losses
Common Stock	$	51,968,112	$	28,425,038	$	23,543,074	$	25,478,675	$	(1,935,601	)
Preferred Stock		2,091,263		1,571,618		519,645		520,557		(912	)
Total Equity Securities	$	54,059,375	$	29,996,656	$	24,062,719	$	25,999,232	$	(1,936,513	)

Summary of Unrealized Losses of Available for Sale Securities as of June 30, 2011 (Unaudited)

	Less Than Twelve Months				Twelve Months or Greater				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Marketable Equity Securities	$	7,114,280	$	1,327,682	$	1,925,464	$	608,831	$	9,039,744	$	1,936,513

Summary of Unrealized Gains on Available for Sale Securities as of June 30, 2011 (Unaudited)

	Less Than Twelve Months				Twelve Months or Greater				Total
	Fair Value		Unrealized Gains		Fair Value		Unrealized Gains		Fair Value		Unrealized Gains
Marketable Equity Securities	$	1,048,050	$	149,026	$	43,971,581	$	25,850,206	$	45,019,631	$	25,999,232

Summary of Available for Sale Securities as of December 31, 2010

Type of Security	Market Value		Cost of Securities		Net Unrealized Gain		Unrealized Gains		Unrealized Losses
Common Stock	$	51,808,717	$	29,341,744	$	22,466,973	$	23,044,040	$	(577,067	)
Preferred Stock		2,067,354		1,626,215		441,139		454,032		(12,893	)
Total Equity Securities	$	53,876,071	$	30,967,959	$	22,908,112	$	23,498,072	$	(589,960	)

Daxor Corporation

Summary of Unrealized Losses on Available for Sale Securities

As at December 31, 2010

	Less Than Twelve Months				Twelve Months or Greater				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Marketable Equity Securities	$	8,263,313	$	74,480	$	2,216,443	$	515,480	$	10,479,756	$	589,960

Daxor Corporation

Summary of Unrealized Gains on Available for Sale Securities

As at December 31, 2010

	Less Than Twelve Months				Twelve Months or Greater				Total
	Fair Value		Unrealized Gains		Fair Value		Unrealized Gains		Fair Value		Unrealized Gains
Marketable Equity Securities	$	2,423,702	$	384,011	$	40,972,613	$	23,114,061	$	43,396,315	$	23,498,072

Our investment policy calls for a minimum of 80% of the value of our portfolio of Available for Sale Securities to be maintained in utility stocks. This percentage may be temporarily decreased to 70% if deemed necessary by management. Operating under this policy, Management’s investment strategy is to purchase utility stocks which it considers to be undervalued relative to the market in anticipation of an increase in the market price.

At June 30, 2011 and December 31, 2010, available for sale securities consisted mostly of preferred and common stocks of utility companies. At June 30, 2011 and December 31, 2010, 96.11% and 96.16% of the market value of the Company’s available for sale securities was made up of common stock, respectively.

The Company’s portfolio value is exposed to fluctuations in the general value of electric utilities. An increase of interest rates could put downward pressure on the valuation of utility stocks.

Electric utilities operate in an environment of federal, state and local regulations, and they may disproportionately affect an individual utility. The Company believes that it’s exposure to regulatory risk is mitigated due to the diversity of holdings consisting of 73 separate common and preferred stocks. As of June 30, 2011 there were five holdings of common stock which comprised 52.36% of the total market value of the available for sale investments. These five holdings are Entergy, Exelon, Bank of America, First Energy and National Grid.

It is possible that the market value of a stock may go below our cost after we purchase it even though we considered the stock to be undervalued relative to the market at the time we purchased it. When that occurs, we follow the provisions of SEC Staff Accounting Bulletin: Codification of Staff Accounting Bulletins, Topic 5-M (“SAB 5-M”): Miscellaneous Accounting, Other Than Temporary Investments in Debt and Equity Securities in determining whether an investment is other than temporarily impaired. The factors we review and/or consider include the following:

	●	The extent to which the market value has been less than cost.

	●	An evaluation of the financial condition of an issuer including a review of their profit and loss statements for the most recent completed fiscal year and the preceding two years.

	●	The examination of the general market outlook of the issuer. This could include but is not limited to the issuer having a unique product or technology which would appear likely to have a positive impact on future earnings.

	●	A review of the general market conditions.

	●	Our intent and ability to retain the investment for a period of time sufficient to allow for the anticipated recovery in market value.

	●	Specific adverse conditions related to the financial health of, and business outlook for, the issuer.

	●	Changes in technology in the industry and its affect on the issuer.

	●	Changes in the issuer’s credit rating.

Unrealized Losses on Available for Sale Securities

At June 30, 2011, 92.44% or $1,790,046 of the total unrealized losses of $1,936,513 was comprised of the following three securities: $971,893 for Bank of America, $264,167 for Citigroup Inc. and $553,986 for USEC.

Bank of America

At June 30, 2011, Daxor owned 507,995 shares of Bank of America with a cost basis of $12.87 per share and a market value of $10.96 per share. On August 3, 2011, the market value was $9.54 per share which is $3.33 or 26% lower than our cost basis of $12.87 per share. As of June 30, 2011, the book value of the Company was $20.29 per share which is substantially more than the current market price and the cost basis of the shares owned by Daxor.

On July 19, 2011, Bank of America reported a net loss of $8.8 billion for the quarter ended June 30, 2011 versus net income of $3.1 billion for the same period in 2010.

The main reason for the loss was a representation and warranties provision of $14.0 billion which includes $8.6 billion in provision and other expenses related to the agreement to resolve nearly all of the legacy Countrywide issued first lien non-GSE RMBS repurchase exposures and $5.4 billion in provision related to other non-GSE, and, to a lesser extent, GSE exposure. Bank of America management now believes it has recorded reserves in its financial statements for a substantial portion of its representations and warranties exposures as measured by original principal balance.

In order to be “well capitalized” under federal bank regulatory agency definitions, a bank holding company must have a Tier 1 Capital Ratio of at least 6%, a Total Capital Ratio of at least 10%, and a Leverage ratio of at least 3% not to be subject to a Federal Reserve Board directive to maintain higher capital levels. At June 30, 2011, the Tier 1 Capital Ratio was 11.00%, the Total Capital Ratio was 15.65% and the leverage ratio was 6.86%. Bank of America is considered “well capitalized” under the federal regulatory agency definitions at June 30, 2011.

After considering the available positive and negative evidence in addition to the ability of Daxor to hold the stock until the market price exceeds our cost as it did at March 31, 2011, management has determined that an impairment charge is not necessary at June 30, 2011 on Bank of America.

Citigroup

At June 30, 2011, Daxor owned 27,940 shares of Citigroup with a cost basis of $51.09 per share and a market value of $41.64. On August 3, 2011, the market value was $37.26 per share which is $13.83 or 27% lower than our cost basis of $51.09 per share. During the first quarter of 2009, the stock was at $10.00 per share and as of August 3, 2011, was trading at $37.26 per share. The stock price has increased by 13% from January 1, 2010 through August 3, 2011 going from $33.10 per share to $37.26 per share.

Citigroup reported net income of $7.1 billion for the six months ended June 30, 2011 versus net income of $6.3 billion for the six months ended June 30, 2010.

Citigroup has increased headcount to 263,000 at June 30, 2011 from 260,000 at March 31, 2011. This is still less than the peak level of 375,000 from 2007. Total Operating Expenses were 8% during the six months ended June 30, 2011 as compared to the same period in 2010.

During 2009, Citigroup repaid $20 billion of TARP (Troubled Asset Relief Program) trust preferred securities and exited a loss sharing agreement. As a result of these transactions, effective in 2010, Citigroup is no longer deemed to be a beneficiary of “exceptional financial assistance” under TARP.

In order to be “well capitalized” under federal bank regulatory agency definitions, a bank holding company must have a Tier 1 Capital Ratio of at least 6%, a Total Capital Ratio of at least 10% , and a Leverage ratio of at least 3%, and not be subject to a Federal Reserve Board directive to maintain higher capital levels. At June 30, 2011, the Tier 1 Capital Ratio was 13.6%, Total Capital Ratio was 17.2% and the Leverage Ratio was 7.0%. Citigroup is considered “well capitalized” under the federal regulatory agency definitions at June 30, 2011 and all of these percentages have improved since December 31, 2010.

The operating environment for Citigroup continues to be difficult but the stock price has mostly been trending upward since the first quarter of 2010. Citigroup has now recorded a profit for six consecutive quarters versus a loss for the year ended December 31, 2009. Citigroup is no longer deemed to be a beneficiary of “exceptional financial assistance” under TARP and is considered to be “well capitalized” under the federal regulatory agency definitions at June 30, 2011.

After considering the available positive and negative evidence in addition to the ability of Daxor to hold the stock until the market price exceeds our cost, management has determined that an impairment charge is not necessary at June 30, 2011 on Citigroup.

USEC

At June 30, 2011, Daxor owned 343,100 shares of USEC with a cost basis of $4.95 per share and a market value of $3.34 per share. On August 3, 2011 the market value of USEC was $3.18 per share which is $1.77 or 36% less than our cost basis of $4.95 per share.

The stock price has decreased by 47% from January 1, 2011 through August 3, 2011, going from $5.99 per share to $3.18 per share. As of June 30, 2011, the Book Value of the Company was approximately $10.95 per share. This is substantially more than the current market price and the cost basis of the shares owned by Daxor.

USEC Inc., together with its subsidiaries, supplies low enriched uranium (LEU) to commercial nuclear power plants in the United States and internationally. It also performs contract work for the U.S. Department of Energy (DOE) and DOE contractors at the Paducah and Portsmouth gaseous diffusion plants. USEC Inc’s contract work includes support services and the maintenance of Portsmouth gaseous diffusion plant in a state of cold shutdown. In addition, the company provides nuclear energy solutions and services, including the design, fabrication, and implementation of spent nuclear fuel technologies; nuclear materials transportation and storage systems; and nuclear fuel cycle and energy consulting services.

USEC reported a net loss of $37.8 million for the six months ended June 30, 2011, versus a net loss of $2.5 million for the same period in 2010. Revenue for the current six month period was $834.9 million which is a 4% increase over 2010. The Gross Profit Margin was 5.6% during the six months ended June 30, 2011 versus 8.8% for the same period in 2010.

Electricity makes up approximately 70% of USEC’s production cost. The Company is focused on negotiations with their major power supplier and other utilities in order to obtain lower cost power with less volatility in pricing after their current contract expires in 2012.

According to their news release of August 3, 2011, the Company is expecting revenue of approximately $1.7 billion for 2011 and a gross profit of approximately $100 million.

Daxor Corporation

Summary of Unrealized Losses on Bank of America, Citigroup and USEC

As of June 30, 2011

			Less Than Twelve Months				Twelve Months or Greater				Total
Security	Total Cost		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Bank of America	$	6,539,518	$	5,567,625	$	971,893	$	—	$	—	$	5,567,625	$	971,893
Citigroup		1,427,588		—		—		1,163,421		264,167		1,163,421		264,167
USEC		1,699,940		882,762		313,595		263,192		240,391		1,145,954		553,986
Total	$	9,667,046	$	6,450,387	$	1,285,488	$	1,426,613	$	504,558	$	7,877,000	$	1,790,046

- Definition

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

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