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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|