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: September 30, 2006
Item 1. Schedule of Investments.
CENTRAL SECURITIES CORPORATION
Statement of Investments
September 30, 2006
(Unaudited)
PORTFOLIO SECURITIES 91.1%
STOCKS (COMMON UNLESS SPECIFIED OTHERWISE)
Prin.Amt.
or Shares Value
--------- -----
Banking and Finance 9.3%
875,000 The Bank of New York Company, Inc..................................... $ 30,852,500
300,000 Capital One Financial Corporation..................................... 23,598,000
------------
54,450,500
------------
Business Services 0.9%
1,005,000 Arbinet-thexchange, Inc. (a).......................................... 5,246,100
------------
Chemicals 2.7%
100,000 The Dow Chemical Company.............................................. 3,898,000
609,000 PolyOne Corporation (a)............................................... 5,072,970
150,000 Rohm and Haas Company................................................. 7,102,500
------------
16,073,470
------------
Communications 0.3%
400,000 Cincinnati Bell Inc.(a)............................................... 1,928,000
------------
Electronics 15.8 %
942,400 Agilent Technologies, Inc. (a)........................................ 30,807,056
430,000 Analog Devices, Inc................................................... 12,637,700
120,000 Cirrus Logic, Inc. (a)................................................ 874,800
255,000 Cypress Semiconductor Corp............................................ 4,531,350
980,000 Intel Corporation..................................................... 20,158,600
200,000 Motorola, Inc......................................................... 5,000,000
1,800,000 Solectron Corporation (a)............................................. 5,868,000
2,500,000 Sonus Networks, Inc. (a).............................................. 13,125,000
------------
93,002,506
------------
Energy 10.9%
100,000 Arch Coal, Inc........................................................ 2,891,000
234,328 Chevron Corporation................................................... 15,198,514
520,200 McMoRan Exploration Co. (a)........................................... 9,228,348
600,000 Murphy Oil Corporation................................................ 28,530,000
160,000 Nexen Inc............................................................. 8,553,600
------------
64,401,462
------------
Health Care 2.6%
120,000 Abbott Laboratories................................................... 5,827,200
320,000 IMS Health Inc. (a)................................................... 8,524,800
134,900 Vical Inc. (a)........................................................ 681,245
------------
15,033,245
------------
Prin. Amt.
or Shares Value
--------- -----
Information Technology Services 13.9%
400,200 Ceridian Corporation (a).............................................. $ 8,948,472
1,550,000 Convergys Corporation (a)............................................. 32,007,500
400,000 Hewitt Associates, Inc. Class A....................................... 9,704,000
1,000,000 Neoware Inc. (a)...................................................... 13,590,000
1,150,000 The TriZetto Group, Inc. (a).......................................... 17,411,000
------------
81,660,972
------------
Insurance 20.5%
10,000 Erie Indemnity Co. Class A............................................ 523,700
70,000 The Plymouth Rock Company, Inc.
Class A (b)(c)(d)................................................. 119,000,000
2,000 White Mountains Insurance Group....................................... 993,920
------------
120,517,620
------------
Manufacturing 13.7%
920,000 Brady Corporation Class A............................................. 31,995,600
400,000 Dover Corporation..................................................... 18,976,000
410,000 Roper Industries, Inc................................................. . 18,343,400
400,000 Tyco International Ltd................................................ 11,196,000
------------
80,511,000
------------
Retail Trade 0.1%
28,751 AeroGroup International, Inc. (a)(c)(d)............................... 862,530
------------
Miscellaneous 0.4%
Other Investments..................................................... 2,538,000
------------
Total Portfolio Securities
(cost $229,477,212)........................................ 536,225,405
------------
SHORT-TERM INVESTMENTS 9.2%
Commercial Paper 5.0%
16,349,000 Citigroup Funding 5.1153% - 5.1465% due 10/5/06 - 11/2/06.............. 16,290,322
9,596,000 General Electric Capital Corp. 5.1110% - 5.1255%
due 10/12/06 - 10/26/06.............................................. 9,576,289
3,828,000 Prudential Funding 5.0027% - 5.2613% due 10/2/06 - 11/8/06............. 3,814,357
------------
29,680,968
U.S. Treasury Bills 4.1%
24,675,000 U.S. Treasury Bills 4.9518% - 4.9550%
due 12/21/06 - 3/1/07............................................... 24,251,062
------------
Total Short-Term Investments
(cost $53,932,030)........................................... 53,932,030
------------
Total Investments (cost $283,409,242) (100.3%)................. 590,157,435
Cash, receivables and other assets
less liabilities (0.3%)...................................... (1,841,950)
------------
Net Assets (100%).............................................. $588,315,485
============
(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 September 30, 2006, the tax cost of investments was $283,409,242. Net
unrealized appreciation was $306,748,193 consisting of gross unrealized
appreciation and gross unrealized depreciation of $308,608,652 and $1,860,459,
respectively.
2. Restricted Securities - The Corporation has from time to time invested in
securities the resale of which is restricted. On September 30, 2006, such
investments had an aggregate value of $119,862,530, which was equal to 20.4% of
the Corporation's net assets. Investments in restricted securities at September
30, 2006 were:
Company Shares Security Date Purchased Cost
------- ------ -------- -------------- ----
AeroGroup International, Inc. 28,751 Common Stock 6/14/05 $17,200
The Plymouth Rock Company, Inc. 70,000 Class A Common Stock 12/15/82 1,500,000
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: October 20, 2006
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: October 20, 2006
By: /s/ Charles N. Edgerton
-----------------------
Vice President and Treasurer
Date: October 20, 2006