N-Q 1 daxor_nq.htm FORM N-Q

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington DC 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

 

INVESTMENT COMPANY ACT FILE NUMBER 811-22684

 

Daxor Corporation

 

(Exact name of registrant as specified in charter)

 

350 Fifth Avenue, Suite 7120

New York, New York 10118

(Address of principal offices)(Zip code)

 

David Frankel, Daxor Corporation

350 Fifth Avenue, Suite 7120

New York, New York 10118

(Name and address of agent for service)

 

Registrant’s Telephone Number, including Area Code: 212-330-8500

 

Date of Fiscal Year End: December 31, 2014

 

Date of Reporting Period: September 30, 2014

 
 

Item 1. Schedule of Investments 

 

 Daxor Corporation
Schedule of Investments
September 30, 2014 (Unaudited)

 

  Shares   Market Value 
COMMON STOCKS - 156.09%          
           
Banking -0.64%          
           
Bank of America Corp.   3,195   $54,475 
Popular, Inc. (a)   1,700    50,039 
First Niagara Financial Group, Inc.   5,000    41,650 
        $146,164 
           
Communication Services-0.39%          
Frontier Communications Corp.   12,500   $81,375 
Novatel Wireless Inc. (a)   2,000    7,340 
        $88,715 
           
Gold-0.35%          
Newmont Mining Corporation       $80,675 
           
Investment Services-0.79%          
United States Natural Gas Fund, LLP (a)   8,125   $179,644 
           
Oil & Gas Operations-0.61%          
Exco Resources, Inc.   18,900   $63,126 
Williams Companies, Inc.   1,200    66,420 
WPX Energy Inc. (a)   400    9,624 
        $139,170 
           
Other Common Stock-0.10%       $22,642 
 
 

Daxor Corporation

Schedule of Investments
September 30, 2014 (Unaudited)

 

   Shares   Market Value 
COMMON STOCKS - 156.09%          
           
Utilities-152.83%          
Electric Utilities-148.60%          
Ameren Corp.   4,000   $153,320 
American Electric Power Co. Inc.   22,600    1,179,946 
Avista Corp.   14,396    439,510 
Calpine Corp. (a)   1,328    28,818 
Centerpoint Energy, Inc.   5,000    122,350 
CMS   41,500    1,230,890 
DTE Energy Co.   47,000    3,575,760 
Duke Energy Corp.   18,117    1,354,608 
Edison International   7,000    391,440 
Entergy Corp.   46,545    3,599,325 
Exelon Corp.   32,700    1,114,743 
Firstenergy Corp.   98,286    3,299,461 
Great Plains Energy Inc.   21,000    507,570 
Hawaiian Electric Industries, Inc.   58,200    1,545,210 
National Grid PLC Shares   38,751    2,785,422 
National Grid PLC ADR   30,392    438,074 
NISOURCE Inc.   44,000    1,803,120 
Northeast Utilities   41,320    1,830,476 
Pepco Holdings Inc.   2,201    58,899 
PG & E Corp.   7,000    315,280 
Pinnacle West Capital Corp.   31,002    1,693,949 
PNM Resources, Inc.   78,750    1,961,663 
Teco Energy, Inc.   2,000    34,760 
UIL Holdings Corp.   22,332    790,553 
UNITIL Corp.   52,900    1,644,661 
Westar Energy, Inc.   42,941    1,465,147 
XCEL Energy, Inc.   19,050    579,120 
        $33,944,075 
Natural Gas Utilities-4.23%          
Integrys Energy Group Inc.   4,500   $291,690 
Southwest Gas Corp.   1,000    48,580 
Spectra Energy Corp.   15,925    625,215 
        $965,485 
           
Total Utilities       $34,909,560 
           
Waste Management-0.38%          
Veolia Environnment SA ADR   5,000   $87,750 
           
Total Common Stock (Cost $14,639,790)-156.09%       $35,654,320 
 
 
Daxor Corporation
Schedule of Investments (Continued)
September 30, 2014 (Unaudited)

 

   Shares   Market Value 
Preferred Stocks-7.48%          
           
Banking-5.74%          
Bank of America Corp., 6.204% Series D   1,000   $24,869 
Bank of America Corp., 7.250% Series L   700    802,550 
Barclays Bank PLC ADR, 8.125% Series 5 Callable   2,500    64,925 
Deutsche Bank Contingent Capital Trust III Preferred, Div 7.60%   10,000    277,200 
Goldman Sachs Group, 6.20% Series B Callable   1,000    24,970 
Wells Fargo Company, 8.00 % Series J Non-Cumulative   4,000    116,080 
        $1,310,594 
           
Electric Utilities-1.63%          
Duquesne Light Co. Preferred, 3.75% Callable   400   $16,800 
Pacific Gas & Electric, 5% Series D   1,000    23,600 
Pacific Gas & Electric, 5% Series E   1,100    25,948 
Pacific Gas & Electric, 6% Series A   4,200    121,800 
Southern California Edison, 4.32% Callable   5,500    125,950 
Southern California Edison, 4.78% Callable   2,500    58,837 
        $372,935 
           
Insurance-0.11%          
MetLife Inc., Series B   1,000   $25,620 
           
Total Preferred Stock (Cost $1,084,156)-7.48%       $1,709,149 
           
Total Investment in Securities (Cost $15,723,946) -163.57%       $37,363,469 
           
Investment in Operating Division-14.96%       $3,416,974 
           
Deferred Income Taxes, Net-8.35%       $1,908,070 
           
Other Assets-0.70%       $160,113 
           
Total Assets-187.58%       $42,848,626 
Total Liabilities – (87.58%)        (20,005,756)
Net Assets-100.00%       $22,842,870 
 
 

Daxor Corporation

Schedule of Investments (Continued)
September 30, 2014 (Unaudited)

 

At September 30, 2014, the net unrealized appreciation based on cost for financial reporting purposes of $21,639,523 was as follows:

 

Aggregate gross unrealized appreciation for all investments for which there was an excess of value over cost  $  21,888,454 
Aggregate gross unrealized depreciation for all investments for which there was an excess of cost over value   (248,931)
Net unrealized appreciation  $21,639,523 

 

Portfolio Analysis

As of September 30, 2014

 

   Percentage
of Net
Assets		 
Common Stock     
Banking   0.64%
Communication Services   0.39%
Gold   0.35%
Investment Services   0.79%
Oil and Gas Operations   0.61%
Other Common Stock   0.10%
Electric Utilities   148.60%
Natural Gas Utilities   4.23%
Waste Management   0.38%
Total Common Stock   156.09%
      
Preferred Stock     
Banking   5.74%
Electric Utilities   1.63%
Insurance   0.11%
Total Preferred Stock   7.48%
      
Total Investment in Securities   163.57%
 
 

Daxor Corporation

Schedule of Investments (Continued)
September 30, 2014 (Unaudited)
         
Name of Issuer  Number of Shares in Short
Position at 09/30/2014		       Value of Short Position at
09/30/2014		 
Securities Sold Short- (81.85%)          
Apple, Inc.   (68,200)  $(6,871,150)
Best Buy Co. Inc.   (18,900)   (634,851)
Blackberry Limited   (3,500)   (34,790)
First Solar   (13,600)   (895,016)
Gap, Inc.   (5,000)   (208,450)
General Electric Co.   (2,500)   (64,050)
Hewlett Packard Company   (7,400)   (262,478)
Keurig Green Mountain, Inc.   (15,000)   (1,951,950)
Intuitive Surgical, Inc.   (500)   (230,910)
KB Home   (3,000)   (44,820)
Netflix, Inc.   (4,800)   (2,165,664)
Pool Corp.   (5,000)   (269,600)
Ralph Lauren Corporation   (1,500)   (247,095)
Simon Property Group Inc.   (26,000)   (4,274,920)
St. Joe Co.   (5,500)   (109,615)
Starbucks Corporation   (3,500)   (264,110)
Toll Brothers Inc.   (1,500)   (46,740)
UBS AG   (5,000)   (86,850)
Washington Prime Group Inc.   (2,000)   (34,960)
Total Securities Sold Short- (81.85%)       $(18,698,019)
           
Restricted Cash (b) -82.09%        18,753,861 
           
Securities borrowed at fair market value, Net of Restricted Cash -0.24%       $55,842 
 
 

Daxor Corporation

Schedule of Investments (Continued)

September 30, 2014 (Unaudited)

 

Name of Issuer  Number of
Contracts		   Exercise
Price		   Expiration
Date		  Value 
Open Options Written-(0.99%)                  
Call Options Written- (0.77%)                  
Apple, Inc.   (105)   90.00   10/17/2014  $(114,712)
Bank of America Corp.   (25)   17.00   10/17/2014   (1,019)
Entergy Corp.   (30)   80.00   10/17/2014   (268)
Entergy Corp.   (10)   80.00   11/21/2014   (950)
Entergy Corp.   (25)   80.00   12/19/2014   (2,750)
Entergy Corp.   (2)   65.00   01/16/2015   (2,510)
Entergy Corp.   (50)   70.00   01/16/2015   (38,750)
Exelon Corp.   (50)   34.00   10/17/2014   (3,500)
Exelon Corp.   (25)   35.00   10/17/2014   (625)
FirstEnergy Corp.   (25)   35.00   10/17/2014   (300)
FirstEnergy Corp.   (30)   36.00   10/17/2014   (10)
FirstEnergy Corp.   (30)   38.00   10/17/2014   (150)
FirstEnergy Corp.   (50)   35.00   01/16/2015   (2,900)
FirstEnergy Corp.   (50)   36.00   01/16/2015   (2,250)
Frontier Communications Corporation   (125)   7.00   11/21/2014   (970)
Newmont Mining Corporation   (35)   25.00   11/21/2014   (1,348)
United States Natural Gas Fund, LLP   (56)   27.00   10/17/2014   (56)
Veolia Environment SA   (50)   22.50   10/17/2014   (2,000)
 Total Call Options Written               $(175,068)
                   
Put Options Written-(0.22%)                  
Apple, Inc.   (50)   85.00   10/17/2014  $(225)
Apple, Inc.   (100)   87.86   10/17/2014   (650)
Apple, Inc.   (100)   80.00   11/21/2014   (1,650)
Apple, Inc.   (200)   85.00   11/21/2014   (6,500)
Apple, Inc.   (100)   87.50   11/21/2014   (4,800)
Apple, Inc.   (100)   80.00   12/19/2014   (2,750)
Apple, Inc.   (100)   85.00   12/19/2014   (5,150)
Bank of America Corp.   (75)   14.00   10/17/2014   (75)
Bank of America Corp.   (35)   12.00   11/21/2014   (35)
Bank of America Corp.   (50)   13.00   11/21/2014   (75)
Bank of America Corp.   (100)   12.00   01/16/2015   (420)
Best Buy Co. Inc.   (35)   25.00   10/17/2014   (64)
Best Buy Co. Inc.   (10)   26.00   10/17/2014   (20)
Best Buy Co. Inc.   (44)   25.00   11/21/2014   (440)
Best Buy Co. Inc.   (50)   26.00   11/21/2014   (603)
Best Buy Co. Inc.   (50)   25.00   12/19/2014   (1,150)
BlackBerry Limited   (35)   9.00   10/17/2014   (420)
Exelon Corp.   (25)   30.00   10/17/2014   (125)
FirstEnergy Corp.    (20)   28.00   01/16/2015   (300)
General Electric Co.   (30)   18.00   12/19/2014   (60)
Hewlett Packard Company   (20)   24.00   11/21/2014   (60)
Hewlett Packard Company   (51)   28.00   11/21/2014   (281)
The Gap, Inc.   (50)   35.00   10/17/2014   (150)
Intuitive Surgical, Inc.   (5)   400.00   11/21/2014   (2,850)
Keurig Green Mountain, Inc.   (35)   95.00   10/17/2014   (420)
Keurig Green Mountain, Inc.   (35)   100.00   10/17/2014   (525)
Keurig Green Mountain, Inc.   (25)   100.00   11/21/2014   (1,137)
Keurig Green Mountain, Inc.   (20)   105.00   11/21/2014   (1,570)
National Grid PLC   (15)   65.00   12/19/2014   (600)
 
 

Daxor Corporation

Schedule of Investments (Continued)

September 30, 2014 (Unaudited)

 

Name of Issuer  Number of
Contracts		   Exercise
Price		   Expiration
Date		  Value 
Put Options Written-(0.22%)                  
Netflix, Inc.   (10)   390.00   10/17/2014  $(2,025)
Netflix, Inc.   (10)   400.00   10/17/2014   (3,060)
Netflix, Inc.   (10)   405.00   10/17/2014   (3,750)
Newmont Mining Corporation   (30)   21.00   12/19/2014   (1,545)
Newmont Mining Corporation   (15)   22.00   01/16/2015   (1,380)
Simon Property Group Inc.   (20)   110.00   10/17/2014   (780)
Simon Property Group Inc.   (30)   140.00   10/17/2014   (345)
Simon Property Group Inc.   (35)   145.00   10/17/2014   (511)
Simon Property Group Inc.   (20)   155.00   10/17/2014   (620)
Simon Property Group Inc.   (70)   140.00   11/21/2014   (2,590)
Simon Property Group Inc.   (30)   145.00   11/21/2014   (1,695)
Simon Property Group Inc.   (10)   125.00   01/16/2015   (78)
Simon Property Group Inc.   (30)   145.00   01/16/2015   (3,645)
SPDR S&P 500   10    185.00   12/19/2014   2,380 
SPDR S&P 500   10    190.00   01/16/2015   4,270 
SPDR S&P 500   10    180.00   02/20/2015   3,130 
Starbucks Corporation   (20)   60.00   11/21/2014   (180)
St. Joe Co.   (55)   18.00   11/21/2014   (1,650)
Toll Brothers Inc.   (15)   27.00   11/21/2014   (188)
UBS AG   (50)   16.00   11/21/2014   (1,000)
Washington Prime Group Inc.   (20)   17.50   10/17/2014   (1,000)
 Total Put Options Written               $(49,367)
                   
Total Call and Put Options Written-(Premium Received)-(0.99%)               $(224,435)
                   
Margin loans payable-(86.29%) (c)               $(19,711,561)
                   
Other Liabilities-(0.30%)               $(69,760)
                   
Total Liabilities –(87.58)%               $(20,005,756)
 
 

Daxor Corporation

Schedule of Investments (Continued)

September 30, 2014 (Unaudited)

 

The Company utilizes various methods to measure the fair value of most of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:

 

Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities that the Company has the ability to access.

 

Level 2 – Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

 

Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Company’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

 

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

 

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

Investments in securities traded on national securities exchanges are valued at the last reported sales price on the last day of the reporting period. Securities traded on the over the counter market and listed securities for which no sale was reported on that date are valued at the mean between the last reported bid and ask prices.

 

The following tables summarize the inputs used as of September 30, 2014 for the Corporation’s assets and liabilities measured at fair value:

 

Assets *  Level 1   Level 2   Level 3   Total 
Common Stocks  $35,654,320   $—   $—   $35,654,320 
Preferred Stocks   1,709,149    —    —    1,709,149 
Investment in Operating Division   —    —    3,416,974    3,416,974 
Total  $37,363,469   $—   $3,416,974   $40,780,443 

 

Liabilities  Level 1   Level 2   Level 3   Total 
Margin Loans  $19,711,561   $—   $—   $19,711,561 
Call and Put Options  $224,435   $—   $—   $224,435 

 

The Company’s Level 3 assets consist of its investment in its Operating Division. Since it’s inception, the Operating Division has not generated significant revenue and has incurred substantial operating losses. Due to these substantial losses, the Operating Division has been completely dependent on funding from the Company to sustain its operations.

 

As such, the Company has determined that the value of the Operating Division approximates the net book value of certain property and equipment reduced by the remaining mortgage balance on such property and equipment. The property and equipment consist of land, buildings and laboratory equipment located in Oak Ridge, Tennessee.

 

* Refer to the Schedule of Investments for industry classifications for common and preferred stock.

(a) Non-income producing investment.

(b) Restricted cash held by Company’s brokers to satisfy margin requirements.

(c) Short-Term debt due to brokers secured by the Company’s investments in marketable securities.

 

Securities valuation policies and other investment related disclosures will be incorporated by reference to the semi-annual and annual reports to be filed with the Securities and Exchange Commission on Form N-CSR.

 
 
ITEM 2.
CONTROLS AND PROCEDURES

 

(a) The Chief Executive Officer and the Chief Financial Officer have concluded that the registrant’s disclosure controls and procedures are effective based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 as of a date within 90 days of the filing of this report.

 

(b) There were no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 3.EXHIBITS

 

Certifications required pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 and Section 302 of the Sarbanes-Oxley Act of 2002 are filed herewith as Exhibit A.

 
 


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.

 

(Registrant) Daxor Corporation

 

By (Signature and Title)   /s/ Joseph Feldschuh  
    BY: Joseph Feldschuh
    ITS: President
    (Chief Executive Officer/Chairman of the Board of Directors/Principal Executive Officer)

Date: November 26, 2014

  

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 (Signature and Title)   /s/ David Frankel  
    BY: David Frankel
    ITS: Chief Financial Officer
    (Principal Financial Officer/Principal Accounting Officer/Chief Compliance Officer)

Date: November 26, 2014