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, 2008
Item 1. Schedule of Investments.
CENTRAL SECURITIES CORPORATION
Statement of Investments
March 31, 2008
(Unaudited)
PORTFOLIO SECURITIES 94.0%
STOCKS (COMMON UNLESS SPECIFIED OTHERWISE)
Prin. Amt.
or Shares Value
---------- ------------
Banking and Finance 8.4%
825,475 The Bank of New York Mellon Corporation.............. $ 34,447,072
340,000 Capital One Financial Corporation.................... 16,734,800
------------
51,181,872
------------
Business Services 0.2%
75,000 Heritage-Crystal Clean Inc. (a)...................... 1,173,750
------------
Chemicals 1.3%
150,000 Rohm and Haas Company................................ 8,112,000
------------
Communications 0.7%
1,005,000 Arbinet-thexchange, Inc. (a)......................... 4,200,900
------------
Electronics 18.5%
942,400 Agilent Technologies, Inc. (a)....................... 28,111,792
430,000 Analog Devices, Inc.................................. 12,693,600
850,000 Coherent, Inc. (a)................................... 23,706,500
630,000 Flextronics International Inc. (a)................... 5,915,700
900,000 Intel Corporation.................................... 19,062,000
350,000 Motorola, Inc........................................ 3,255,000
1,000,000 Radisys Corporation (a).............................. 10,090,000
3,000,000 Sonus Networks, Inc. (a)............................. 10,320,000
------------
113,154,592
------------
Energy 17.2 %
375,000 Berry Petroleum Company Class A...................... 17,433,750
200,000 Devon Energy Corporation............................. 20,866,000
1,900,000 GeoMet, Inc. (a)..................................... 12,654,000
650,000 McMoRan Exploration Co. (a).......................... 11,238,500
410,000 Murphy Oil Corporation............................... 33,677,400
320,000 Nexen Inc............................................ 9,475,200
------------
105,344,850
------------
Health Care 1.1%
110,000 Abbott Laboratories.................................. 6,066,500
170,000 Vical Inc. (a)....................................... 598,400
------------
6,664,900
------------
Information Technology Services 8.8%
1,730,800 Convergys Corporation................................ 26,065,848
970,000 The TriZetto Group, Inc. (a)......................... 16,189,200
700,000 Xerox Corporation.................................... 10,479,000
------------
52,734,148
------------
Prin. Amt.
or Shares Value
---------- ------------
Insurance 23.8%
100,000 American International Group, Inc................... $4,325,000
10,000 Erie Indemnity Co. Class A.......................... 511,900
70,000 The Plymouth Rock Company, Inc.
Class A (b)(c)(d)............................... 140,000,000
2,000 White Mountains Insurance Group..................... 960,000
------------
145,796,900
------------
Manufacturing 12.9%
875,600 Brady Corporation Class A........................... 29,271,308
150,000 Carlisle Companies Inc.............................. 5,016,000
400,000 Dover Corporation................................... 16,712,000
69,000 Precision Castparts Corporation..................... 7,043,520
350,000 Roper Industries, Inc............................... 20,804,000
------------
78,846,828
------------
Retailing 1.4%
28,751 AeroGroup International, Inc. (a)(c)(d)............. 690,024
200,000 Walgreen Co......................................... 7,618,000
------------
8,308,024
------------
Total Portfolio Securities
(cost $266,078,613)............................. 575,518,764
SHORT-TERM INVESTMENTS 6.0%
Commercial Paper 2.7%
2,084,000 American Express Credit Corp. 2.81% due 4/9/08........ 2,082,703
14,734,000 General Electric Capital Corp. 2.17% - 2.81%
due 4/9/08 - 5/7/08................................ 14,707,959
------------
16,790,662
------------
U.S. Treasury Bills 3.3%
20,048,000 U.S. Treasury Bills 1.0488% - 3.0733%
due 4/3/08 - 5/22/08............................... 19,994,656
------------
Total Short-Term Investments
(cost $36,785,318)............................... 36,785,318
------------
Total Investments (cost $302,863,931) (96.4%)...... 612,304,082
(cost $242,296,470)(100.0%) 361,797,954
Cash, receivables and other assets
less liabilities (3.6%).......................... 134,303
------------
Net Assets (100%).................................. $612,438,385
============
(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, 2008, the tax cost of investments was $302,863,931. Net
unrealized appreciation was $309,440,151 consisting of gross unrealized
appreciation and gross unrealized depreciation of $323,084,866 and $13,644,715,
respectively.
2. Restricted Securities - The Corporation has from time to time invested in
securities the resale of which is restricted. On March 31, 2008, such
investments had an aggregate value of $140,690,024, which was equal to 23.0% of
the Corporation's net assets. Investments in restricted securities at March 31,
2008 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 25, 2008
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 25, 2008
By: /s/ Charles N. Edgerton
-----------------------------
Vice President and Treasurer
Date: April 25, 2008