t68180_nq.htm
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 811-02265
 
 
The Value Line Fund, Inc.
(Exact name of registrant as specified in charter)

220 East 42nd Street, New York, NY 10017

Mitchell E. Appel
(Name and address of agent for service)

Registrant’s telephone number, including area code:  212-907-1500

Date of fiscal year end: December 31

Date of reporting period: March 31, 2010
 
 
 
 

Item 1: Schedule of Investments.
A copy of Schedule of Investments for the period ended 3/31/10 is included with this Form.
 
 
 
 
 
The Value Line Fund, Inc.
 
Schedule of Investments (unaudited) March 31, 2010
 
Shares
            
Value
  
COMMON STOCKS (95.0%)              
                     
     
CONSUMER DISCRETIONARY (18.7%)
              
                     
  24,000  
Aaron’s, Inc.
         $ 800,160  
  5,700  
AutoZone, Inc.  *
           986,613  
  18,000  
Bed Bath & Beyond, Inc.  *
           787,680  
  20,000  
Buckle, Inc. (The)
           735,200  
  5,000  
Buffalo Wild Wings, Inc.  *
           240,550  
  6,000  
Deckers Outdoor Corp.  *
           828,000  
  25,000  
DIRECTV Class A *
           845,250  
  10,000  
Dollar Tree, Inc.  *
           592,200  
  26,700  
Expedia, Inc.
           666,432  
  15,000  
Guess?, Inc.
           704,700  
  3,000  
Harman International Industries, Inc.  *
           140,340  
  27,000  
Johnson Controls, Inc.
           890,730  
  3,000  
LKQ Corp.  *
           60,900  
  5,800  
National Presto Industries, Inc.
           689,678  
  2,000  
Netflix, Inc.  *
           147,480  
  2,000  
O’Reilly Automotive, Inc.  *
           83,420  
  14,000  
Panera Bread Co. Class A *
           1,070,860  
  5,000  
Peet’s Coffee & Tea, Inc.  *
           198,250  
  3,000  
PF Chang’s China Bistro, Inc.  *
           132,390  
  9,700  
Priceline.com, Inc.  *
           2,473,500  
  18,000  
Shaw Communications, Inc. Class B
           357,660  
  4,000  
Strayer Education, Inc.
           974,080  
  30,000  
TJX Companies, Inc. (The)
           1,275,600  
  3,000  
Tupperware Brands Corp.
           144,660  
  9,100  
Unifirst Corp.
           468,650  
  15,000  
Warnaco Group, Inc. (The)  *
           715,650  
  26,000  
Yum! Brands, Inc.
           996,580  
                18,007,213  
                       
     
CONSUMER STAPLES (11.1%)
                
                       
  2,000  
British American Tobacco PLC ADR
             137,800  
  13,200  
Casey’s General Stores, Inc.
             414,480  
  15,000  
Church & Dwight Co., Inc.
             1,004,250  
  16,000  
Cott Corp.  *
             124,000  
  29,000  
Diamond Foods, Inc.
             1,219,160  
  30,000  
Flowers Foods, Inc.
             742,200  
  12,000  
General Mills, Inc.
             849,480  
  21,000  
Green Mountain Coffee Roasters, Inc.  *
             2,033,220  
  7,000  
Hansen Natural Corp.  *
             303,660  
  21,000  
Hormel Foods Corp.
             882,210  
  23,000  
J&J Snack Foods Corp.
             999,810  
  12,900  
Lancaster Colony Corp.
             760,584  
  28,000  
TreeHouse Foods, Inc.  *
             1,228,360  
                10,699,214  
                       
     
ENERGY (1.0%)
                
                       
  1,000  
Core Laboratories N.V.
             130,800  
  3,000  
Enbridge, Inc.
             143,250  
  18,000  
Southwestern Energy Co.  *
             732,960  
                1,007,010  
                       
     
FINANCIALS (3.6%)
                
                       
  21,000  
AFLAC, Inc.
             1,140,090  
  3,000  
Bank of Montreal
             182,100  
  2,400  
BlackRock, Inc.
             522,624  
  9,000  
Knight Capital Group, Inc. Class A *
             137,250  
  8,000  
Royal Bank of Canada
             466,800  
  3,000  
Stifel Financial Corp.  *
             161,250  
 
Shares
            
Value
  
  15,000  
T. Rowe Price Group, Inc.
         $ 823,950  
                3,434,064  
                       
     
HEALTH CARE (21.3%)
                
                       
  15,000  
Allergan, Inc.
             979,800  
  14,000  
AmerisourceBergen Corp.
             404,880  
  2,000  
Bio-Rad Laboratories, Inc. Class A *
             207,040  
  19,400  
Catalyst Health Solutions, Inc.  *
             802,772  
  9,000  
Cerner Corp.  *
             765,540  
  24,800  
Computer Programs & Systems, Inc.
             969,184  
  4,000  
Covance, Inc.  *
             245,560  
  15,000  
Covidien PLC
             754,200  
  3,000  
DENTSPLY International, Inc.
             104,550  
  18,000  
Edwards Lifesciences Corp.  *
             1,779,840  
  4,000  
ev3, Inc.  *
             63,440  
  13,000  
Express Scripts, Inc.  *
             1,322,880  
  23,000  
Gilead Sciences, Inc.  *
             1,046,040  
  9,000  
Haemonetics Corp.  *
             514,350  
  12,000  
Henry Schein, Inc.  *
             706,800  
  6,000  
Hospira, Inc.  *
             339,900  
  13,000  
Illumina, Inc.  *
             505,700  
  2,200  
Intuitive Surgical, Inc.  *
             765,886  
  4,000  
Life Technologies Corp.  *
             209,080  
  14,000  
Medco Health Solutions, Inc.  *
             903,840  
  8,000  
MEDNAX, Inc.  *
             465,520  
  16,000  
Novo Nordisk A/S ADR
             1,233,920  
  13,000  
Owens & Minor, Inc.
             603,070  
  22,000  
ResMed, Inc.  *
             1,400,300  
  12,000  
Sirona Dental Systems, Inc.  *
             456,360  
  23,000  
Teva Pharmaceutical Industries Ltd. ADR
             1,450,840  
  13,000  
Thermo Fisher Scientific, Inc.  *
             668,720  
  24,000  
Thoratec Corp.  *
             802,800  
  1,000  
Volcano Corp.  *
             24,160  
                20,496,972  
                       
     
INDUSTRIALS (13.3%)
                
                       
  4,000  
Alliant Techsystems, Inc.  *
             325,200  
  2,000  
AMETEK, Inc.
             82,920  
  30,600  
Applied Signal Technology, Inc.
             599,148  
  7,100  
Cubic Corp.
             255,600  
  9,000  
Danaher Corp.
             719,190  
  6,000  
Donaldson Co., Inc.
             270,720  
  15,000  
Elbit Systems Ltd.
             960,150  
  16,000  
IHS, Inc. Class A  *
             855,520  
  18,000  
ITT Corp.
             964,980  
  12,000  
L-3 Communications Holdings, Inc.
             1,099,560  
  3,000  
Lennox International, Inc.
             132,960  
  1,000  
Middleby Corp. (The)  *
             57,590  
  17,000  
Oshkosh Corp.  *
             685,780  
  15,000  
Raytheon Co.
             856,800  
  50,000  
Rollins, Inc.
             1,084,000  
  12,000  
Roper Industries, Inc.
             694,080  
  700  
Stantec, Inc.  *
             18,270  
  12,000  
Stericycle, Inc.  *
             654,000  
  12,000  
United Technologies Corp.
             883,320  
  11,000  
URS Corp.  *
             545,710  
  8,000  
Valmont Industries, Inc.
             662,640  
  2,000  
W.W. Grainger, Inc.
             216,240  
  4,000  
Waste Connections, Inc.  *
             135,840  
                12,760,218  
 
 
1
 
 
The Value Line Fund, Inc.
 
  March 31, 2010
 
Shares
            
Value
  
     
INFORMATION TECHNOLOGY (15.0%)
              
                     
  21,000  
Accenture PLC Class A
         $ 880,950  
  15,000  
Advent Software, Inc.  *
           671,250  
  9,000  
Amphenol Corp. Class A
           379,710  
  5,000  
ANSYS, Inc.  *
           215,700  
  27,000  
Check Point Software Technologies Ltd.  *
           946,620  
  33,000  
Cognizant Technology Solutions Corp. Class A  *
           1,682,340  
  15,000  
Dolby Laboratories, Inc. Class A  *
           880,050  
  7,000  
Equinix, Inc.  *
           681,380  
  5,000  
F5 Networks, Inc.  *
           307,550  
  3,000  
FactSet Research Systems, Inc.
           220,110  
  700  
Google, Inc. Class A *
           396,907  
  36,000  
Informatica Corp.  *
           966,960  
  2,200  
MasterCard, Inc. Class A
           558,800  
  5,000  
MAXIMUS, Inc.
           304,650  
  4,000  
MICROS Systems, Inc.  *
           131,520  
  25,000  
Open Text Corp.  *
           1,186,750  
  51,000  
Oracle Corp.
           1,310,190  
  7,000  
OSI Systems, Inc.  *
           196,350  
  6,000  
Salesforce.com, Inc.  *
           446,700  
  13,000  
Solera Holdings, Inc.
           502,450  
  2,000  
SuccessFactors, Inc.  *
           38,080  
  29,000  
Sybase, Inc.  *
           1,351,980  
  5,000  
Wright Express Corp.  *
           150,600  
                14,407,597  
                       
     
MATERIALS (8.1%)
                
                       
  8,000  
Airgas, Inc.
             508,960  
  10,000  
Ball Corp.
             533,800  
  9,000  
Calgon Carbon Corp.  *
             154,080  
  37,000  
Crown Holdings, Inc.  *
             997,520  
  24,000  
FMC Corp.
             1,452,960  
  7,000  
NewMarket Corp.
             720,930  
  9,000  
Praxair, Inc.
             747,000  
  8,000  
Rock-Tenn Co. Class A
             364,560  
  15,000  
Scotts Miracle-Gro Co. (The) Class A
             695,250  
  12,000  
Sigma-Aldrich Corp.
             643,920  
  16,000  
Silgan Holdings, Inc.
             963,680  
                7,782,660  
                       
     
TELECOMMUNICATION SERVICES (1.1%)
                
                       
  21,000  
American Tower Corp. Class A *
             894,810  
  2,000  
Telefonica S.A. ADR
             142,200  
                    1,037,010  
                   
     
UTILITIES (1.8%)
                
                       
  12,000  
ITC Holdings Corp.
             660,000  
  18,000  
Questar Corp.
             777,600  
  6,000  
Wisconsin Energy Corp.
             296,460  
                1,734,060  
                   
 
TOTAL COMMON STOCKS AND TOTAL INVESTMENT SECURITIES (1) (95.0%)
(Cost $67,093,643)
             91,366,018  
 
Principal
Amount
      
Value
  
SHORT-TERM INVESTMENTS (4.5%)
        
               
     
REPURCHASE AGREEMENTS (2) (4.5%)
        
               
$
4,300,000
  
With Morgan Stanley, 0.00%, dated 03/31/10, due 04/01/10, delivery value $4,300,000 (collateralized by $4,375,000
U.S. Treasury Notes 2.3750%, due 08/31/14, with a value of $4,395,374), 0.0%, 4/1/10
  
$
4,300,000
  
               
     
TOTAL SHORT-TERM INVESTMENTS (3)
(Cost $4,300,000) (4.5%)
    
4,300,000
  
               
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES  (0.5%)    
440,432
  
NET ASSETS (4) (100%)  
$
96,106,450
  
NET ASSET VALUE OFFERING AND REDEMPTION PRICE, PER OUTSTANDING SHARE
    ($96,106,450 ÷ 13,118,137 shares outstanding)		  
$
7.33
  
 
*
Non-income producing.
(1)
Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs established by FAS 157.
(2)
The Fund’s custodian takes possession of the underlying collateral securities, the value of which exceeds the principal amount of the repurchase transaction, including accrued interest.
(3)
Values determined based on Level 2 inputs established by FASB ASC 820-10, Fair Value Measurements and Disclosures.
(4)
For federal income tax purposes, the aggregate cost was $71,393,643, aggregate gross unrealized appreciation was $24,463,096, aggregate gross unrealized depreciation was $190,721 and the net unrealized appreciation was $24,272,375.
ADR
American Depositary Receipt.
 
 
2
 
 
In accordance with Financial Accounting Standards Board Accounting Standards Codification (FASB ASC 820-10), Fair Value Measurements and Disclosures, (formerly Statement of Financial Accounting Standards (“SFAS”) No. 157), the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (level 3 measurements). FASB ASC 820-10-35-39 to 55 provides three levels of the fair value hierarchy as follows:
 
●
Level 1: Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date;
 
●
Level 2: Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active;
 
●
Level 3: Inputs that are unobservable.
 
In April 2009, the Fund adopted the authoritative guidance included in FASB ASC 820-10, Fair Value Measurements and Disclosures, on determining fair value when the volume and level of activity for the asset or liability have significantly decreased and identifying transactions that are not orderly (formerly FSP FAS 157-4). FASB ASC 820-10-35-51A to 51H indicates that if an entity determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value. Valuation techniques such as an income approach might be appropriate to supplement or replace a market approach in those circumstances. It provides a list of factors to determine whether there has been a significant decrease in relation to normal market activity. Regardless, however, of the valuation technique and inputs used, the objective for the fair value measurement in those circumstances is unchanged from what it would be if markets were operating at normal activity levels and/or transactions were orderly; that is, to determine the current exit price as promulgated by FASB ASC 820-10. The guidance also requires additional disclosures regarding inputs and valuation techniques used, change in valuation techniques and related inputs, if any, and more disaggregated information relating to debt and equity securities.
 
Valuation techniques such as an income approach might be appropriate to supplement or replace a market approach in those circumstances. It provides a list of factors to determine whether there has been a significant decrease in relation to normal market activity. Regardless, however, of the valuation technique and inputs used, the objective for the fair value measurement in those circumstances is unchanged from what it would be if markets were operating at normal activity levels and/or transactions were orderly; that is, to determine the current exit price as promulgated by FASB ASC 820-10.
 
The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund’s investments carried at value:
 
Investments in Securities:
 
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Assets
                        
     Common Stocks
   $ 91,366,018     $ 0     $ 0     $ 91,366,018  
     Short Term Investments
     0       4,300,000       0       4,300,000  
                                 
     Total Investments in Securities
   $ 91,366,018     $ 4,300,000     $ 0     $ 95,666,018  
 
For the period ended March 31, 2010, there were no Level 3 investments. The types of inputs used to value each security are identified in the Schedule of Investments, which also includes a breakdown of the Schedule’s investments by category.
 
 
 
 
 
Item 2. Controls and Procedures.
(a)
The registrant’s principal executive officer and principal financial officer have concluded that the   registrant’s disclosure controls and procedures (as defined in rule 30a-2(c) under the Act (17 CFR 270.30a-2(c) ) based on their evaluation of these controls and procedures as of the date within 90 days of filing date of this report, are approximately designed to ensure that material information relating to the registrant is made known to such officers and are operating effectively.
   
(b)
The registrant’s principal executive officer and principal financial officer have determined that there have been no significant changes in the registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including corrective actions with regard to significant deficiencies and material weaknesses.

Item 3. Exhibits:
(a)
Certifications of principal executive officer and principal financial officer of the registrant.
 
 
 
 
 
SIGNATURES

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.

By
/s/ Mitchell E. Appel
  
 
Mitchell E. Appel, President
  
     
Date:
May 28, 2010
  

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/ Mitchell E. Appel
  
 
Mitchell E. Appel, President, Principal Executive Officer
     
By:
/s/ Emily D. Washington
  
 
Emily D. Washington, Treasurer, Principal Financial Officer
     
Date:
May 28, 2010