(2) AVAILABLE-FOR-SALE SECURITIES

9 Months Ended

Sep. 30, 2011

Marketable Securities [Text Block]

(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 September 30, 2011 (Unaudited)

Type of Security	Market Value		Cost of Securities		Net Unrealized Gain		Unrealized Gains		Unrealized Losses
Common Stock	$	50,440,956	$	32,389,878	$	18,051,078	$	25,019,410	$	(6,968,332	)
Preferred Stock		1,875,550		1,571,618		303,932		363,630		(59,698	)
Total Equity Securities	$	52,316,506	$	33,961,496	$	18,355,010	$	25,383,040	$	(7,028,030	)

Summary of Unrealized Losses of Available for Sale Securities as of September 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	$	6,956,028	$	5,203,441	$	1,901,917	$	1,824,589	$	8,857,945	$	7,028,030

Summary of Unrealized Gains on Available for Sale Securities as of September 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	$	67,700	$	4,990	$	43,390,861	$	25,378,050	$	43,458,561	$	25,383,040

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 September 30, 2011 and December 31, 2010, available for sale securities consisted mostly of preferred and common stocks of utility companies. At September 30, 2011 and December 31, 2010, 96.37% 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 86 separate common and preferred stocks. As of September 30, 2011 there were five holdings of common stock which comprised 47.54% of the total market value of the available for sale investments. These five holdings are Entergy, Exelon, First Energy, Bank of America, 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 September 30, 2011, 82.82% or $5,820,878 of the total unrealized losses of $7,028,030 was comprised of the following three securities: $3,631,118 for Bank of America, $823,789 for Citigroup Inc. and $1,365,971 for USEC.

Bank of America

At September 30, 2011, Daxor owned 560,295 shares of Bank of America with a cost basis of $12.60 per share and a market value of $6.12 per share. On October 31, 2011, the market value was $6.83 per share which is $5.77 or 46% lower than our cost basis of $12.60 per share. As of September 30, 2011, the book value of the Company was $20.80 per share which is substantially more than the current market price and the cost basis of the shares owned by Daxor.

Revenue, net of interest expense for the quarter ended September 30, 2011 increased to $28.4 billion from $26.7 billion during the quarter ended September 30, 2010.

The Company took advantage of its strong liquidity position during the quarter ended September 30, 2011 and reduced short term debt by $17 billion and long term debt by $28 billion.

On October 18, 2011, Bank of America reported net income of $6.2 billion for the quarter ended September 30, 2011 versus a net loss of $7.3 billion for the same period in 2010.

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 September 30, 2011, the Tier 1 Capital Ratio was 11.48%, the Total Capital Ratio was 15.86% and the leverage ratio was 7.11%. Bank of America is considered “well capitalized” under the federal regulatory agency definitions at September 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 September 30, 2011 on Bank of America.

Citigroup

At September 30, 2011, Daxor owned 38,440 shares of Citigroup with a cost basis of $47.05 per share and a market value of $25.62. On October 31, 2011, the market value was $31.59 per share which is $15.46 or 33% lower than our cost basis of $47.05 per share. During the first quarter of 2009, the stock was at $10.00 per share and as of October 31, 2011, was trading at $31.59 per share. The stock price has decreased by 5% from January 1, 2010 through October 31, 2011 going from $33.10 per share to $31.59 per share. As of September 30, 2011, the book value of the Company was $60.56 which is substantially more than the current market price and the shares owned by Daxor.

Citigroup reported net income of $3.8 billion for the quarter ended September 30, 2011 versus net income of $2.1 billion for the quarter ended September 30, 2010. Revenue was $20.8 billion during the current quarter versus $20.7 billion for the same period in 2010.

Citigroup has increased headcount to 267,000 at September 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% higher during the nine months ended September 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 September 30, 2011, the Tier 1 Capital Ratio was 13.5%, Total Capital Ratio was 16.9% 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 seven 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 September 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 September 30, 2011 on Citigroup.

USEC

At September 30, 2011, Daxor owned 422,400 shares of USEC with a cost basis of $4.84 per share and a market value of $1.61 per share. On October 31, 2011 the market value of USEC was $2.10 per share which is $2.74 or 57% less than our cost basis of $4.84 per share.

 The stock price has decreased by 65% from January 1, 2011 through October 31, 2011, going from $5.99 per share to $2.10 per share. As of September 30, 2011, the Book Value of the Company was approximately $10.93 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 $44.7 million for the nine months ended September 30, 2011, versus a net loss of $1.5 million for the same period in 2010. Revenue for the current nine month period was $1.209 billion which is a 12% increase from 2010. The Gross Profit Margin was 6.1% during the nine months ended September 30, 2011 versus 8.0% for the nine months ended September 30, 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.

            In their news release of November 4, 2011, the Company reaffirmed  expected revenue of approximately $1.7 billion for 2011 and a gross profit of approximately $100 million.

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 September 30, 2011 on USEC.

Daxor Corporation

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

As of September 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	$	7,060,123	$	3,077,105	$	3,198,236	$	351,900	$	432,882	$	3,429,005	$	3,631,118
Citigroup		1,808,429		550,723		244,864		433,918		578,925		984,641		823,789
USEC		2,046,036		377,223		690,565		302,841		675,406		680,064		1,365,971
Total	$	10,914,588	$	4,005,051	$	4,133,665	$	1,088,659	$	1,687,213	$	5,093,710	$	5,820,878