Annual report pursuant to Section 13 and 15(d)

Short-Term Investments and Marketable Securities

v2.4.0.6
Short-Term Investments and Marketable Securities
12 Months Ended
Nov. 30, 2012
Short-Term Investments and Marketable Securities

NOTE 3—SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES

Short-term investments and marketable securities, which consist of stock and various corporate and government obligations, are stated at market value. The Company has classified its investments as Available-for-Sale securities and considers as current assets those investments which will mature or are likely to be sold in the next fiscal year. The remaining investments are considered non-current assets. The cost and market values of the investments at November 30, 2012 and November 30, 2011 are as follows:

 

 

     November 30,      November 30,  
     2012      2011  
     COST      MARKET      COST      MARKET  

Current:

           

Corporate Obligations

   $ 1,004,490       $ 995,827       $ 970,461       $ 964,357   

Limited Partnership

     223,373         292,680         223,373         234,445   

Preferred Stock

     —           —           454,855         382,340   

Common Stock

     600,046         595,626         443,818         557,827   

Mutual Funds

     —           —           285,480         223,027   

Fixed Income

     400,000         399,639         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 2,227,909       $ 2,283,772       $ 2,377,987       $ 2,361,996   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     November 30,      November 30,  
     2012      2011  
     COST      MARKET      COST      MARKET  

Non-Current:

           

Corporate Obligations

     —           —           754,518         734,418   

Preferred Stock

     —           —           2,404,581         2,248,608   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     —           —           3,159,099         2,983,026   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 2,227,909       $ 2,283,772       $ 5,537,086       $ 5,345,022   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

The market value at November 30, 2012 was $2,283,772 as compared to $5,345,022 at November 30, 2011. The gross unrealized gains and (losses) were $76,119 and $(20,256) for November 30, 2012 and $188,265 and $(380,335) for November 30, 2011, respectively. The cost and market values of the investments at November 30, 2012 were as follows:

 

Name of Issuer and Title of

Each Issue

  

Maturity

Date

    

Interest

Rate

   

Number of

Units-Principal

Amount of

Bonds and

Notes

    

Cost of

Each Issue

    

Market

Value of

Each Issue

at Balance

Sheet Date

    

Amount at

Which Each

Portfolio of

Equity Security

Issue and Each

Other Security

Issue Carried in

Balance Sheet

 

CORPORATE OBLIGATIONS:

                

Barclays Bank

     10/07/13         1.1500     500,000         500,000         493,375         493,375   

America Express Credit Corp

     12/15/12         3.9000     200,000         250,000         250,007         250,007   

JP Morgan Chase Series

     09/30/13         1.6500     250,000         254,490         252,445         252,445   
          

 

 

    

 

 

    

 

 

 
             1,004,490         995,827         995,827   
          

 

 

    

 

 

    

 

 

 

Limited Partnerships:

                

Energy Transfer Partners

          1,000         50,695         43,890         43,890   

Enterprise Prods Partners

          500         21,190         25,915         25,915   

Kinder Morgan Energy

          500         34,762         40,755         40,755   

Magellan Midstream Partners

          1,000         53,113         88,960         88,960   

Plains All Amern Pipeline

          1,000         63,613         93,160         93,160   
          

 

 

    

 

 

    

 

 

 
             223,373         292,680         292,680   
          

 

 

    

 

 

    

 

 

 
  

 

Name of Issuer and Title of

Each Issue

  

Maturity

Date

    

Interest

Rate

   

Number of

Units-Principal

Amount of

Bonds and

Notes

    

Cost of

Each Issue

    

Market

Value of

Each Issue

at Balance

Sheet Date

    

Amount at

Which

Each

Portfolio of

Equity

Security

Issue and

Each Other

Security

Issue

Carried in

Balance

Sheet

 

Common Stock:

                

S&P 500 ETF Trust

          4,190         600,046         595,626         595,626   
          

 

 

    

 

 

    

 

 

 
             600,046         595,626         595,626   
          

 

 

    

 

 

    

 

 

 

Fixed Income

                

Homebanc Natl Assn

     1/30/2013         0.20     150         150,000         149,954         149,954   

Safra Natl Bank CD

     11/14/13         0.45     250         250,000         249,685         249,685   
          

 

 

    

 

 

    

 

 

 
             400,000         399,639         399,639   
          

 

 

    

 

 

    

 

 

 

TOTALS

             2,227,909         2,283,772         2,283,772   
          

 

 

    

 

 

    

 

 

 

 

During the years ended November 30, 2012, 2011 and 2010, available-for-sale securities were liquidated and proceeds amounting to $4,430,892, $3,516,000 and $17,619,057 were received, with resultant realized gains (losses) totaling $121,670, $815, and $(10,481), respectively. Cost of available-for-sale securities includes unamortized premium or discount.

As of November 30, 2012, the Company had unrealized gains on its investments of $55,863. This amount was reduced by deferred tax of $20,616, of which a $77,594 benefit was recorded in prior fiscal years and an expense of $98,210 was recorded in fiscal 2012. The unrealized gains are accounted for under mark-to-market rules for Available-for-Sale securities. Please see Note 2 for further information.

The Company adopted ASC Topic 820, “Fair Value Measurements and Disclosures” as of December 1, 2007, which expands disclosures about investments that are measured and reported at fair market value. ASC Topic 820 established a fair value hierarchy that prioritizes the inputs to valuation techniques utilized to measure fair value into three broad levels as follows:

Level 1 – Quoted market prices in active markets for the identical asset or liability that the reporting entity has ability to access at measurement date.

Level 2 – Quoted market prices for identical or similar assets or liabilities in markets that are not active, and where fair value is determined through the use of models or other valuation methodologies.

Level 3 – Unobserved inputs for the asset or liability. Fair value is determined by the reporting entity’s own assumptions utilizing the best information available, and includes situations where there is little market activity for the investment.

 

Description

   November 30,
2012
     Quoted Market
Price in Active
Markets
(Level 1)
     Significant
Other
Observable
Inputs
(Level 2)
 

Corporate obligations

   $ 995,827       $ —         $ 995,827   

Limited Partnerships

     292,680         292,680         —     

Common Stocks

     595,626         595,626         —     

Fixed Income

     399,639         399,639         —     
  

 

 

    

 

 

    

 

 

 

Total

   $ 2,283,772       $ 1,287,945       $ 995,827   
  

 

 

    

 

 

    

 

 

 

 

Description

   November 30,
2011
     Quoted Market
Price in Active
Markets
(Level 1)
     Significant
Other
Observable
Inputs
(Level 2)
 

Corporate obligations

   $ 1,698,775       $ —         $ 1,698,775   

Limited Partnerships

     234,445         234,445         —     

Preferred Stocks

     2,630,948         2,630,948         —     

Common Stocks

     557,827         557,827         —     

Mutual Funds

     223,027         190,302         32,725   
  

 

 

    

 

 

    

 

 

 

Total

   $ 5,345,022       $ 3,613,522       $ 1,731,500