(2) AVAILABLE FOR SALE SECURITIES

12 Months Ended

Dec. 31, 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 and short positions:

Summary of Available for Sale Securities at December 31, 2011

Type of Security	Market Value		Cost Basis		Unrealized Gains		Unrealized Losses
Equity	$	55,804,364	$	36,463,635	$	27,322,697	$	(7,981,968	)

Summary of Put and Call Options at December 31, 2011

Description	Market Value		Proceeds Received		Unrealized Gains		Unrealized Losses
Puts	$	6,895,535	$	6,502,208	$	1,514,395	$	(1,907,722	)
Calls	$	207,913	$	452,213	$	285,758	$	(41,458	)
Total Puts and Calls	$	7,103,448	$	6,954,421	$	1,800,153	$	(1,949,180	)

Summary of Securities Borrowed at Fair Value at December 31, 2011

Type of Security	Market Value		Proceeds Received		Unrealized Gains		Unrealized Losses
Equity	$	23,136,820	$	16,845,833	$	288	$	(6,291,275	)

Daxor Corporation

Summary of Unrealized Losses on Available for Sale Securities

As at December 31, 2011

	Less Than Twelve Months				Twelve Months or Greater				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Marketable Equity Securities	$	6,834,546	$	3,680,525	$	3,566,012	$	4,301,443	$	10,400,558	$	7,981,968

Daxor Corporation

Summary of Unrealized Gains on Available for Sale Securities

As at December 31, 2011

	Less Than Twelve Months				Twelve Months or Greater				Total
	Fair Value		Unrealized Gains		Fair Value		Unrealized Gains		Fair Value		Unrealized Gains
Marketable Equity Securities	$	237,324	$	27,697	$	45,166,482	$	27,295,000	$	45,403,806	$	27,322,697

Summary of Available for Sale Securities at December 31, 2010

Type of Security	Market Value		Cost Basis		Unrealized Gains		Unrealized Losses
Equity	$	53,876,071	$	30,967,959	$	23,498,072	$	(589,960	)

Summary of Put and Call Options at December 31, 2010

Description	Market Value		Proceeds Received		Unrealized Gains		Unrealized Losses
Puts	$	2,764,234	$	8,116,480	$	5,426,402	$	(74,156	)
Calls	$	1,565,835	$	1,780,147	$	792,892	$	(578,580	)
Total Puts and Calls	$	4,330,069	$	9,896,627	$	6,219,294	$	(652,736	)

Summary of Securities Borrowed at Fair Value at December 31, 2010

Type of Security	Market Value		Proceeds Received		Unrealized Gains		Unrealized Losses
Equity	$	22,406,036	$	19,287,024	$	13,310	$	(3,132,322	)

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

At December 31, 2011 and December 31, 2010, available for sale securities consist mostly of preferred and common stocks of utility companies.

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. 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.

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 December 31, 2011, 82.1% or $6,550,065 of the total unrealized losses of $7,981,968 was comprised of the following three securities: $4,078,970 for Bank of America, $872,787 for Citigroup Inc. and $1,598,308 for USEC.

Bank of America

At December 31, 2011, Daxor owned 612,095 shares of Bank of America with a cost basis of $12.22 per share and a market value of $5.56 per share. On March 14, 2012, the market value was $8.84 per share which is $3.38 or 28% lower than our cost basis of $12.22 per share. As of December 31, 2011, the book value of the Company was $20.09 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 year ended December 31, 2011 decreased to $93.4 billion from $110.2 billion during the year ended December 31, 2010.

On January 19, 2012, Bank of America reported net income of $1.4 billion for the year ended December 31, 2011 versus a net loss of $2.2 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 December 31, 2011, the Tier 1 Capital Ratio was 12.40%, the Total Capital Ratio was 16.75% and the leverage ratio was 7.53%. Bank of America is considered “well capitalized” under the federal regulatory agency definitions at December 31, 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 December 31, 2011 on Bank of America.

Citigroup

At December 31, 2011, Daxor owned 48,940 shares of Citigroup with a cost basis of $44.14 per share and a market value of $26.31. On March 14, 2012, the market value was $35.21 per share which is $8.93 or 20% lower than our cost basis of $44.14 per share. During the first quarter of 2009, the stock was at $10.00 per share and as of March 5, 2012, was trading at $33.68 per share. As of December 31, 2011, the book value of the Company was $60.70 which is substantially more than the current market price and the shares owned by Daxor.

Citigroup reported net income of $11.0 billion for the year ended December 31, 2011 versus net income of $10.6 billion for the year ended December 31, 2010. Revenue was $78.3 billion during the current year versus $86.6 billion for the same period in 2010.

Citigroup has increased headcount to 266,000 at December 31, 2011 from 260,000 at December 31, 2010. This is still less than the peak level of 375,000 from 2007. Total Operating Expenses were 8% higher during the year ended December 31, 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 December 31, 2011, the Tier 1 Capital Ratio was 13.6%, Total Capital Ratio was 17.0% and the Leverage Ratio was 7.2%. Citigroup is considered “well capitalized” under the federal regulatory agency definitions at December 31, 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 eight 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 December 31, 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 December 31, 2011 on Citigroup.

USEC

At December 31, 2011, Daxor owned 444,100 shares of USEC with a cost basis of $4.74 per share and a market value of $1.14 per share. On March 14, 2012 the market value of USEC was $1.27 per share which is $3.47 or 73% less than our cost basis of $4.74 per share.

The stock price has decreased by 79% from January 1, 2011 through March 14, 2012, going from $5.99 per share to $1.27 per share. As of December 31, 2012, the Book Value of the Company was approximately $5.78 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 $540.7 million for the year ended December 31, 2011, versus net income of $7.5 million for the same period in 2010. Revenue for the current year was $1.67 billion which is an 18% decrease from 2010. The Gross Profit Margin was 5.0% during the year ended December 31, 2011 versus 7.8% for the year ended December 31, 2011. In spite of having a net loss, USEC had positive cash flow from operating activities of $56.3 million during the current year.

USEC expensed $136.7 million of capitalized work-in-progress cost related to damaged centrifuges as well as earlier machines that were determined to no longer be compatible with the commercial plant design. The Company also recorded a full valuation allowance for the net deferred tax assets of $369.1 million due to cumulative losses incurred in recent years and the substantial uncertainty of generating future taxable income that would lead to realization of the net deferred tax assets. The charge and the valuation allowance did not affect the company’s cash flow from operations.

The market price of USEC has declined by approximately 70% since a tsunami caused an accident at a nuclear plant in Fukishima, Japan in March of 2011. One year after the accident, the total number of reactors in operation and development in the world has not changed. This means that the long term demand for uranium has not diminished since last year, even though short-term demand may have been affected by the minor decrease in reactors currently operating.

              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 December 31, 2011 on USEC.

Daxor Corporation

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

As of December 31, 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	$	7,482,218	$	1,482,296	$	1,513,806	$	1,920,952	$	2,565,164	$	3,403,248	$	4,078,970
Citigroup		2,160,398		828,765		299,530		458,846		573,257		1,287,611		872,787
USEC		2,104,582		249,660		682,330		256,614		915,978		506,274		1,598,308
Total	$	11,747,198	$	2,560,721	$	2,495,666	$	2,636,412	$	4,054,399	$	5,197,133	$	6,550,065