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, 2015

 

Date of Reporting Period: September 30, 2015

 
 

Item 1. Schedule of Investments

 

Daxor Corporation

Schedule of Investments

September 30, 2015 (Unaudited)

   Shares   Market Value 
COMMON STOCKS - 76.62%          
           
Banking -0.27%          
First Niagara Financial Group, Inc.   5,000   $51,050 
           
Diversified Machinery-0.33%          
General Electric Company (a)   2,500   $63,050 
           
Gold-0.42%          
Newmont Mining   5,000   $80,350 
           
Investment Services-0.50%          
United States Natural Gas Fund, LLP (a)   8,125   $94,331 
           
Oil & Gas Pipelines-1.44%          
Columbia Pipeline Group, Inc.   15,000   $274,350 
           
Other Common Stock-0.12%   2,201   $22,438 
           
Utilities-73.54%          
Electric Utilities-72.13%          
Ameren Corp.   2,000   $84,540 
American Electric Power Co. Inc.   6,000    341,160 
Avista Corp.   7,000    232,750 
Centerpoint Energy, Inc.   1,000    18,040 
CMS   16,000    565,120 
DTE Energy Co.   17,000    1,366,290 
Duke Energy Corp.   5,000    359,700 
Edison International   5,000    315,350 
Entergy Corp.   36,000    2,343,600 
Eversource Energy   20,000    1,012,400 
Exelon Corp.   21,300    632,610 
Firstenergy Corp.   52,000    1,628,120 
Great Plains Energy Inc.   1,500    40,530 
National Grid PLC Shares   13,000    905,190 
NISOURCE Inc.   19,000    352,450 
Pepco Holdings Inc.   2,000    48,440 
PG & E Corp.   5,000    264,000 
Pinnacle West Capital Corp.   8,000    513,120 
PNM Resources, Inc.   44,000    1,234,200 
Teco Energy, Inc.   2,000    52,520 
UIL Holdings Corp.   9,000    452,430 
WEC Energy Goup   1,128    58,904 
Westar Energy, Inc.   16,000    615,040 
XCEL Energy, Inc.   8,000    283,280 
      $13,719,784 
           
Southwest Gas Corp.   1,000   $58,320 
Spectra Energy Corp.   8,000    210,160 
        $268,480 
           
Total Utilities       $13,988,264 
           
Total Common Stock (Cost $5,969,722)-76.62%       $  14,573,833 
 
 

Daxor Corporation

Schedule of Investments (Continued)

September 30, 2015 (Unaudited)

 

   Shares   Market Value 
Preferred Stocks-6.17%          
           
Banking-4.19%          
Bank of America Corp., 7.250% Series L   300    323,100 
Barclays Bank PLC ADR, 8.125% Series 5 Callable   2,500    64,675 
Deutsche Bank Contingent Capital Trust III Preferred, Div 7.60%   10,000    273,100 
Goldman Sachs Group, 6.20% Series B Callable   1,000    25,600 
Wells Fargo Company, 8.00% Series J Non-Cumulative   4,000    110,280 
      $796,755 
           
Electric Utilities-1.98%          
Duquesne Light Co. Preferred, 3.75% Callable   400   $17,000 
Pacific Gas & Electric, 5% Series D   1,000    24,400 
Pacific Gas & Electric, 5% Series E   1,100    25,850 
Pacific Gas & Electric, 6% Series A   4,200    121,380 
Southern California Edison, 4.32% Callable   5,500    128,150 
Southern California Edison, 4.78% Callable   2,500    59,950 
        $376,730 
           
Total Preferred Stock (Cost $780,333)-6.17%       $1,173,485 
           
Total Investment in Securities (Cost $6,750,055) -82.79%       $15,747,318 
           
Investment in Operating Division-18.47%       $3,512,313 
           
Deferred Income Taxes, Net-21.67%       $4,120,933 
           
Receivable from Broker-Restricted Cash-12.86%       $2,446,043 
           
Other Assets-0.33%       $61,470 
           
Total Assets-136.12%       $25,888,077 
Total Liabilities – (36.12%)        (6,867,555)
Net Assets-100.00%       $  19,020,522 
 
 

Daxor Corporation

Schedule of Investments (Continued)

September 30, 2015 (Unaudited)

 

At September 30, 2015, the net unrealized appreciation based on cost for financial reporting purposes of $8,997,263 was as follows:

 

Aggregate gross unrealized appreciation for all investments
for which there was an excess of value over cost
  $9,172,651 
Aggregate gross unrealized depreciation for all investments
for which there was an excess of cost over value
   (175,388)
Net unrealized appreciation  $    8,997,263 

 

Portfolio Analysis

As of September 30, 2015

 

   Percentage of Net
Assets
 
Common Stock     
Banking   0.27%
Diversified Machinery   0.33%
Gold   0.42%
Investment Services   0.50%
Oil and Gas Pipelines   1.44%
Other Common Stock   0.12%
Electric Utilities   72.13%
Natural Gas Utilities   1.41%
Total Common Stock   76.62%
      
Preferred Stock     
Banking   4.19%
Electric Utilities   1.98%
Total Preferred Stock   6.17%
      
Total Investment in Securities   82.79%
 
 

Daxor Corporation

Schedule of Investments (Continued)

September 30, 2015 (Unaudited)

 

Name of Issuer  Number of Shares in Short
Position at 09/30/2015
   Value of Short Position at
09/30/2015
 
Restricted Cash (b)-12.86%             $2,446,043 
           
Securities Sold Short- (12.22%)          
Apple, Inc.   (1,500)   (165,450)
Intuitive Surgical, Inc.   (500)   (229,790)
KB Homes   (3,000)   (40,650)
Simon Property Group Inc.   (10,000)   (1,837,200)
Toll Brothers Inc.   (1,500)   (51,360)
Total Securities Sold Short- (12.22%)       $(2,324,450)
           
Restricted Cash, Net of Securities Borrowed at Fair Market Value -0.64%       $121,593 
 
 

Daxor Corporation
Schedule of Investments (Continued)
September 30, 2015 (Unaudited)

 

Name of Issuer  Number of
Contracts
   Exercise
Price
   Expiration
Date
  Value 
Open Options Written-(1.36%)                  
Call Options Written- (0.35%)                  
British Petroleum   (6)   35.00   11/20/2015  $(66)
Duke Energy Corporation   (30)   75.00   01/15/2016   (3,825)
Entergy Corporation   (105)   65.00   10/16/2015   (7,075)
Entergy Corporation   (35)   70.00   11/20/2015   (1,430)
Entergy Corporation   (30)   70.00   12/18/2015   (1,922)
Entergy Corporation   (50)   72.50   12/18/2015   (1,500)
Entergy Corporation   (40)   75.00   12/18/2015   (600)
Entergy Corporation   (25)   67.50   01/15/2016   (3,750)
Entergy Corporation   (35)   70.00   01/15/2016   (3,045)
Exelon Corp.   (40)   33.00   10/16/2015   (400)
Firstenergy Corporation   (30)   33.00   10/16/2015   (240)
Firstenergy Corporation   (110)   35.00   10/16/2015   (79)
Firstenergy Corporation   (100)   36.00   10/16/2015   (36)
Firstenergy Corporation   (100)   37.00   10/16/2015   (33)
Firstenergy Corporation   (100)   38.00   10/16/2015   (31)
Firstenergy Corporation   (30)   35.00   01/15/2016   (810)
Firstenergy Corporation   (50)   36.00   01/15/2016   (500)
Firstenergy Corporation   (50)   37.00   01/15/2016   (500)
Firstenergy Corporation   (50)   38.00   01/15/2016   (37)
Firstenergy Corporation   (50)   39.00   01/15/2016    
Newmont Mining Corp.   (20)   15.00   10/16/2015   (2,798)
Newmont Mining Corp.   (50)   21.00   10/16/2015   (150)
National Grid PLC   (60)   70.00   10/16/2015   (4,338)
National Grid PLC   (30)   70.00   12/18/2015   (5,250)
PNM Resources   (65)   25.00   10/16/2015   (19,682)
Pinnacle West Capital Corporation   (50)   65.00   10/16/2015   (5,250)
Polo Ralph Lauren Corporation   (15)   120.00   10/16/2015   (3,788)
Total Call Options Written               $(67,135)
 
 

Daxor Corporation
Schedule of Investments (Continued)
September 30, 2015 (Unaudited)

 

Name of Issuer  Number of
Contracts
   Exercise
Price
   Expiration
Date
  Value 
Put Options Written-(1.01%)                  
Apple, Inc.   (5)   105.00   10/16/2015  $(650)
Apple, Inc.   (10)   105.00   11/20/2015   (4,100)
Bank of America Corp.   (25)   15.00   10/16/2015   (556)
Bank of America Corp.   (25)   13.00   11/20/2015   (300)
Bank of America Corp.   (30)   14.00   11/20/2015   (705)
Bank of America Corp.   (35)   15.00   11/20/2015   (1,650)
Bank of America Corp.   (25)   16.00   11/20/2015   (2,325)
Bank of America Corp.   (45)   14.00   12/18/2015   (1,581)
Bank of America Corp.   (35)   12.00   01/15/2016   (576)
Bank of America Corp.   (30)   14.00   01/15/2016   (1,344)
Bank of America Corp.   (50)   15.00   01/15/2016   (3,750)
Bank of America Corp.   (35)   13.00   02/19/2016   (1,225)
Bank of America Corp.   (25)   15.00   02/19/2016   (2,175)
British Petroleum   (35)   35.00   10/16/2015   (16,275)
British Petroleum   (40)   36.00   10/16/2015   (22,640)
British Petroleum   (29)   35.00   11/20/2015   (17,763)
British Petroleum   (50)   35.00   01/15/2016   (27,250)
British Petroleum   (40)   36.00   01/15/2016   (26,160)
Centerpoint Energy, Inc.   (25)   16.00   11/20/2015   (500)
KB Home   (30)   11.00   10/16/2015   (150)
Intuitive Surgical Inc.   (5)   450.00   11/20/2015   (7,750)
Newmont Mining Corp.   (20)   15.00   10/16/2015   (600)
Newmont Mining Corp.   (50)   21.00   12/18/2015   (26,625)
Newmont Mining Corp.   (25)   15.00   01/15/2016   (3,100)
Newmont Mining Corp.   (40)   20.00   01/15/2016   (17,800)
Simon Property Group Inc.   (30)   150.00   10/16/2015   (270)
Simon Property Group Inc.   (40)   165.00   10/16/2015   (1,460)
Simon Property Group Inc.   (20)   160.00   11/20/2015   (2,023)
Toll Brothers, Inc.   (15)   30.00   10/16/2015   (119)
Total Put Options Written               $(191,422)
                   
Total Call and Put Options Written-(Premium Received)-(1.36%)               $(258,557)
                   
Margin loans payable-(22.14%) (c)               $(4,210,637)
                   
Securities borrowed at fair value-(12.22%)               $(2,324,450)
                   
Other Liabilities-(0.40%)               $(73,911)
                   
Total Liabilities –(36.12)%               $  (6,867,555)
 
 

Daxor Corporation

Schedule of Investments (Continued)

September 30, 2015 (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, 2015 for the Corporation’s assets and liabilities measured at fair value:

 

Assets *  Level 1   Level 2   Level 3   Total 
Common Stocks  $14,573,833   $   $   $14,573,833 
Preferred Stocks   1,173,485            1,173,485 
Investment in Operating Division           3,512,313    3,512,313 
Total  $15,747,318   $   $3,512,313   $19,259,631 

 

Liabilities  Level 1   Level 2   Level 3   Total 
Margin Loans  $4,210,637   $   $   $4,210,637 
Call and Put Options  $258,557   $   $   $258,557 

 

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 24, 2015  

 

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 24, 2015