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, 2011
Short-term Investments and Marketable Securities [Abstract]  
SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES

NOTE 6 — 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, 2011 and November 30, 2010 are as follows:

 

      September 30,       September 30,       September 30,       September 30,  
     November 30,
2011
    November 30,
2010
 

Current:

  COST     MARKET     COST     MARKET  

Guaranteed bank Certificates of deposit

    —         —       $ 816,000     $ 821,836  

Corporate obligations

    970,461       964,357       200,000       202,364  

Government obligations (including mortgage backed securities)

    —         —         2,499,185       2,499,100  

Limited Partnership

    223,373       234,445       —         —    

Preferred stock

    454,855       382,340       250,000       216,140  

Common Stock

    443,818       557,827       667,188       710,023  

Mutual funds

    285,480       223,027       285,475       224,385  
   

 

 

   

 

 

   

 

 

   

 

 

 
         

Total

    2,377,987       2,361,996       4,717,848       4,673,848  
   

 

 

   

 

 

   

 

 

   

 

 

 
     
    November 30,
2011
    November 30,
2010
 
    COST     MARKET     COST     MARKET  

Non-Current:

                               

Corporate obligations

    754,518       734,418       750,000       748,629  

Preferred stock

    2,404,581       2,248,608       2,391,002       2,375,422  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    3,159,099       2,983,026       3,141,002       3,124,051  
   

 

 

   

 

 

   

 

 

   

 

 

 
         

Total

  $ 5,537,086     $ 5,345,022     $ 7,858,850     $ 7,797,899  
   

 

 

   

 

 

   

 

 

   

 

 

 

 

The market value at November 30, 2011 was $5,345,022 as compared to $7,797,899 at November 30, 2010. The gross unrealized gains and (losses) were $188,265 and $(380,335) for November 30, 2011 and $26,440 and $(87,390) for November 30, 2010, respectively. The cost and market values of the investments at November 30, 2011 were as follows:

 

    September 30,   September 30,     September 30,       September 30,       September 30,       September 30,  

COL. A

          COL. B     COL. C     COL.D     COL.E  

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
 
             

LIMITED PARTNERSHIPS:

                                       

Energy Transfer Partners

            1,000       50,695       43,760       43,760  

Enterprise Prods Partners

            500       21,190       22,745       22,745  

Kinder Morgan Energy

            500       34,762       39,100       39,100  

Magellan Midstream Partners

            1,000       53,113       63,980       63,980  

Plains All Amern Pipeline

            1,000       63,613       64,860       64,860  
                   

 

 

   

 

 

   

 

 

 
                                         
                      223,373       234,445       234,445  
                   

 

 

   

 

 

   

 

 

 

 

 

      September 30,       September 30,       September 30,       September 30,       September 30,       September 30,  

COL. A

              COL. B     COL. C     COL.D     COL.E  

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:

                                               
             

American Express Credit Corp

    12/12/12       3.900     250,000       250,000       250,050       250,050  

Bank of America

    04/30/12       2.100       50,000       50,866       50,430       50,430  

Barclays Bank

    10/07/13       1.150       500,000       500,000       484,170       484,170  

Berkshire Hathway Global

    02/12/12       1.400       60,000       60,503       60,109       60,109  

Citigroup Funding, Inc.

    06/04/12       1.875       200,000       203,390       201,854       201,854  

JP Morgan Chase Series

    09/30/13       1.650       250,000       254,518       250,248       250,248  

Sovering Bank

    01/17/12       2.750       200,000       203,046       200,626       200,626  

Teva Pha Fin III

    06/15/12       1.500       200,000       202,656       201,288       201,288  
                           

 

 

   

 

 

   

 

 

 
             
                              1,724,979       1,698,775       1,698,775  
                           

 

 

   

 

 

   

 

 

 
      September 30,       September 30,       September 30,       September 30,       September 30,       September 30,  

PREFERRED STOCK:

                                               
             

Bank of America Ser H

    05/01/13       8.200       20,000       250,000       220,500       220,500  

Bank of America Ser Q

    05/28/13       8.625       20,000       250,000       222,000       222,000  

 

 

 

      September 30,       September 30,       September 30,       September 30,       September 30,       September 30,  

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
 
             

PREFERRED STOCK (con’t):

                                               
             

Barclay’s Bank

    06/15/13       8.125       4,000       106,480       90,800       90,800  

Citigroup

    03/30/15       0.000       7,600       199,644       191,520       191,520  

Citigroup Cap XII Trups

    03/30/40       8.500       10,000       255,000       252,000       252,000  

Deutsche Bank Capital TR V

    05/23/17       6.550       6,000       151,500       117,300       117,300  

General Electric Cap Corp

    11/15/32       6.100       8,800       224,845       225,720       225,720  

JP Morgan Chase

    09/01/13       8.625       4,000       111,960       108,200       108,200  

JP Morgan Chase

    06/15/33       5.875       2,000       50,000       50,000       50,000  

MetLife Floater

            4.000       8,000       200,000       181,120       181,120  

Morgan Stanley Cap

    01/15/46       6.450       6,300       149,020       133,813       133,813  

Morgan Stanley Cap Tr

    07/15/33       5.750       4,000       100,000       80,720       80,720  

PNC Capital

    03/15/13       7.750       4,000       106,579       103,040       103,040  

RBS Capital Funding

            5.900       2,000       50,000       20,200       20,200  

Suntrust Capital IX

    03/15/68       7.875       10,000       249,553       252,500       252,500  

Wells Fargo

                    7,000       204,855       181,020       181,020  

Wells Fargo Cap Tr VIII

    08/01/33       5.625       8,000       200,000       200,495       200,495  
                           

 

 

   

 

 

   

 

 

 
             
                              2,859,436       2,630,948       2,630,948  
                           

 

 

   

 

 

   

 

 

 

 

 

 

    September 30,   September 30,     September 30,       September 30,       September 30,       September 30,  

COL. A

          COL. B     COL. C     COL. D     COL. E  

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:

                                       
             

American Electric Power Co

            7,500       254,263       297,600       297,600  

Consolidated Edison Inc.

            2,000       76,381       118,840       118,840  

DTE Energy Company

            1,200       51,648       63,180       63,180  

Frontier Communications Corp

            480       3,818       2,747       2,747  

Verizon Communications

            2,000       57,708       75,460       75,460  
                   

 

 

   

 

 

   

 

 

 
             

MUTUAL FUNDS:

                    443,818       557,827       557,827  
                   

 

 

   

 

 

   

 

 

 
             

Dreyfus Premier Ltd High Income

            16,296.314       215,274       190,302       190,302  

PIMCO Floating Rate Strategy

            2,900       70,206       32,725       32,725  
                   

 

 

   

 

 

   

 

 

 
                      285,480       223,027       223,027  
                   

 

 

   

 

 

   

 

 

 
             

Totals

                  $ 5,537,086     $ 5,345,022     $ 5,345,022  
                   

 

 

   

 

 

   

 

 

 

 

 

During the years ended November 30, 2011, 2010 and 2009, available-for-sale securities were liquidated and proceeds amounting to $3,516,000, $17,619,057and $21,528,407 were received, with resultant realized gains (losses) totaling $815, $(10,481), and $113,272, respectively. Cost of available-for-sale securities includes unamortized premium or discount.

As of November 30, 2011, the Company had unrealized (losses) on its investments of $(192,064). This amount was reduced by a deferred tax benefit of $77,594, of which a $24,928 benefit was recorded in prior fiscal years and a benefit of $52,666 was recorded in fiscal 2011. None of the unrealized losses have been deemed to be other-than-temporary or temporary impairments, and 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.

 

      September 30,       September 30,       September 30,  

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 Partnership

    234,445       234,445       —    

Preferred Stock

    2,630,948       2,630,948       —    

Common Stock

    557,827       557,827       —    

Mutual Funds

    223,027       190,302       32,725  
   

 

 

   

 

 

   

 

 

 
       

Total

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

 

 

   

 

 

   

 

 

 

 

 

 

      September 30,       September 30,       September 30,  

Description

  November 30,
2010
    Quoted
Market Price
in Active
Markets
(Level 1)
    Significant
Other
Observable
Inputs
(Level 2)
 

Bank Certificates of Deposit

  $ 821,836     $ —       $ 821,836  

Corporate obligations

    950,993       —         950,993  

Government Obligations

    2,499,100       2,499,100       —    

Preferred Stock

    2,591,562       2,591,562       —    

Common Stock

    710,023       710,023       —    

Mutual Funds

    224,385       187,639       36,746  
   

 

 

   

 

 

   

 

 

 
       

Total

  $ 7,797,899     $ 5,988,324     $ 1,809,575