United States
Securities and Exchange Commission
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-00179
Central Securities Corporation
(Exact name of registrant as specified in charter)
630 Fifth Avenue, Suite 820
New York, N.Y. 10111
(Address of principal executive offices)
Registrant's telephone number including area code: 212-698-2020
Date of fiscal year end: December 31
Date of reporting period: March 31, 2007
Item 1. Schedule of Investments.
CENTRAL SECURITIES CORPORATION
Statement of Investments
March 31, 2007
(Unaudited)
PORTFOLIO SECURITIES 93.0%
STOCKS (COMMON UNLESS SPECIFIED OTHERWISE)
Prin.Amt.
or Shares Value
--------- -----
Banking and Finance 10.0%
875,000 The Bank of New York Company, Inc.............................................. $ 35,481,250
310,000 Capital One Financial Corporation.............................................. 23,392,600
100,000 SLM Corporation................................................................ 4,090,000
------------
62,963,850
------------
Business Services 7.5%
1,400,000 Convergys Corporation (a)...................................................... 35,574,000
200,000 Hewitt Associates, Inc. Class A (a)............................................ 5,846,000
200,000 IMS Health Inc................................................................. 5,932,000
------------
47,352,000
------------
Chemicals 1.3%
75,000 PolyOne Corporation (a)........................................................ 457,500
150,000 Rohm and Haas Company.......................................................... 7,758,000
------------
8,215,500
------------
Communications 1.3%
1,005,000 Arbinet-thexchange, Inc. (a)................................................... 6,351,600
400,000 Cincinnati Bell Inc.(a)........................................................ 1,880,000
------------
8,231,600
------------
Electronics 16.7%
942,400 Agilent Technologies, Inc. (a)................................................. 31,749,456
430,000 Analog Devices, Inc............................................................ 14,830,700
255,000 Cypress Semiconductor Corp..................................................... 4,730,250
980,000 Intel Corporation.............................................................. 18,747,400
350,000 Motorola, Inc.................................................................. 6,184,500
1,800,000 Solectron Corporation (a)...................................................... 5,670,000
2,500,000 Sonus Networks, Inc. (a)....................................................... 20,175,000
115,382 Verigy Ltd. (a)................................................................ 2,708,015
------------
104,795,321
------------
Energy 14.0%
100,000 Arch Coal, Inc................................................................. 3,069,000
375,000 Berry Petroleum Company Class A................................................ 11,497,500
234,328 Chevron Corporation............................................................ 17,330,899
701,000 GeoMet, Inc. (a)............................................................... 6,182,820
555,000 McMoRan Exploration Co. (a).................................................... 7,609,050
600,000 Murphy Oil Corporation......................................................... 32,040,000
160,000 Nexen Inc...................................................................... 9,808,000
------------
87,537,269
------------
Health Care 1.2%
120,000 Abbott Laboratories............................................................ 6,696,000
134,900 Vical Inc. (a)................................................................. 650,218
------------
7,346,218
------------
Prin. Amt.
or Shares Value
--------- -----
Information Technology Services 5.6%
1,500,000 Neoware Inc. (a)(b)........................................................... 15,105,000
1,005,000 The TriZetto Group, Inc. (a).................................................. 20,110,050
------------
35,215,050
------------
Insurance 21.5%
10,000 Erie Indemnity Co. Class A.................................................... 527,700
70,000 The Plymouth Rock Company, Inc.
Class A (b)(c)(d)......................................................... 133,000,000
2,000 White Mountains Insurance Group............................................... 1,133,000
------------
134,660,700
------------
Manufacturing 13.7%
200,000 A.S.V. Inc.(a)................................................................ 3,052,000
910,000 Brady Corporation Class A..................................................... 28,392,000
400,000 Dover Corporation............................................................. 19,524,000
410,000 Roper Industries, Inc......................................................... 22,500,800
400,000 Tyco International Ltd........................................................ 12,620,000
------------
86,088,800
------------
Retail Trade 0.2%
28,751 AeroGroup International, Inc. (a)(c)(d)....................................... 1,293,795
------------
Total Portfolio Securities
(cost $233,898,719)................................................ 583,700,103
SHORT-TERM INVESTMENTS 6.9%
Commercial Paper 4.1%
6,098,000 American Express Credit Corp. 5.1110% - 5.1204% due 4/4/07 - 4/18/07........... 6,091,439
4,173,000 Citigroup Funding 5.1168% - 5.1204% due 4/11/07 - 5/30/07...................... 4,152,936
6,967,000 General Electric Capital Corp. 5.1059% - 5.1204%
due 4/25/07 - 6/6/07......................................................... 6,914,955
1,379,000 Prudential Funding 5.1052% due 4/25/07......................................... 1,374,339
7,614,000 UBS Finance 5.1357% due 5/16/07................................................. 7,565,556
------------
26,099,225
------------
U.S. Treasury Bills 2.8%
17,678,000 U.S. Treasury Bills 5.0055% - 5.0206%
due 5/3/07 - 5/10/07........................................................ 17,588,620
------------
Total Short-Term Investments
(cost $43,687,845)................................................... 43,687,845
------------
Total Investments (cost $277,586,564) (99.9%).......................... 627,387,948
Cash receivables and other assets
less liabilities (0.1%).............................................. 339,830
------------
Net Assets (100%)...................................................... $627,727,778
==== ============
(a) Non-dividend paying.
(b) Affiliate as defined in the Investment Company Act of 1940.
(c) Valued at estimated fair value.
(d) Restricted security. See footnote 2.
See accompanying notes to statement of investments.
CENTRAL SECURITIES CORPORATION
NOTES TO STATEMENT OF INVESTMENTS
1. Security Valuation - Securities are valued at the last sale price or, if
unavailable, at the closing bid price. Corporate discount notes are valued at
amortized cost, which approximates value. Securities for which no ready market
exists are valued at estimated fair value by the Board of Directors.
As of March 31, 2007, the tax cost of investments was $277,586,564. Net
unrealized appreciation was $349,801,384 consisting of gross unrealized
appreciation and gross unrealized depreciation of $355,856,021 and $6,054,637,
respectively.
2. Restricted Securities - The Corporation has from time to time invested in
securities the resale of which is restricted. On March 31, 2007, such
investments had an aggregate value of $134,293,795, which was equal to 21.4% of
the Corporation's net assets. Investments in restricted securities at March 31,
2007 were:
Company Shares Security Date Purchased Cost
------- ------ -------- -------------- ----
AeroGroup International, Inc. 28,751 Common Stock 6/14/05 $17,200
The Plymouth Rock Company, Inc. 60,000 Class A Common Stock 12/15/82 1,500,000
The Plymouth Rock Company, Inc. 10,000 Class A Common Stock 6/9/84 699,986
The Corporation does not have the right to demand registration of the restricted
securities.
Item 2. Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and Financial
Officers have concluded that the Registrant's Disclosure Controls and Procedures
are effective based on their evaluation of the Disclosure Controls and
Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Control Over Financial Reporting. During the last fiscal quarter,
there was no significant change in the Registrant's internal control over
financial reporting that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
Item 3. Exhibits.
(a) Certifications.
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.
CENTRAL SECURITIES CORPORATION
By: /s/ Wilmot H. Kidd
----------------------------------
President
Date: April 18, 2007
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: /s/ Wilmot H. Kidd
----------------------------------
President
Date: April 18, 2007
By: /s/ Charles N. Edgerton
----------------------------------
Vice President and Treasurer
Date: April 18, 2007
I Wilmot H. Kidd, certify that:
1. I have reviewed this report on Form N-Q of Central Securities Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedules of investments included in this report
fairly present in all material respects the investments of the registrant as of
the end of the fiscal quarter for which the report is filed;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and
have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including
its consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
(b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting
principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of a date
within 90 days prior to the filing date of this report, based on such
evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's
most recent fiscal quarter that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
4/13/07 /s/ Wilmot H. Kidd
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Date Signature
President
---------
Title
I Charles N. Edgerton, certify that:
1. I have reviewed this report on Form N-Q of Central Securities Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedules of investments included in this report
fairly present in all material respects the investments of the registrant as of
the end of the fiscal quarter for which the report is filed;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and
have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including
its consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
(b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting
principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of a date
within 90 days prior to the filing date of this report, based on such
evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's
most recent fiscal quarter that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
4/13/07 /s/ Charles N. Edgerton
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Date Signature
VP and Treasurer
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Title