t65608c_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, 2009

Date of reporting period: September 30, 2009
 
 
 
 

Item 1: Schedule of Investments.
A copy of Schedule of Investments for the period ended 9/30/09 is included with this Form.
 
 
 
 
 
The Value Line Fund, Inc.

Schedule of Investments (unaudited)
September 30, 2009
 
Shares
      
Value
  
           
COMMON STOCKS (91.1%)
      
   
CONSUMER DISCRETIONARY  (20.0%)
      
  12,000  
99 Cents Only Stores  *
   $ 161,400  
  24,000  
Aaron's, Inc.
     633,600  
  21,000  
Advance Auto Parts, Inc.
     824,880  
  11,200  
Aeropostale, Inc.  *
     486,864  
  6,000  
Apollo Group, Inc. Class A *
     442,020  
  7,000  
AutoZone, Inc.  *
     1,023,540  
  2,000  
Bob Evans Farms, Inc.
     58,120  
  20,000  
Buckle, Inc. (The)
     682,800  
  5,000  
Buffalo Wild Wings, Inc.  *
     208,050  
  3,000  
Corinthian Colleges, Inc.  *
     55,680  
  9,000  
Darden Restaurants, Inc.
     307,170  
  25,000  
DIRECTV Group, Inc. (The)  *
     689,500  
  10,000  
Dollar Tree, Inc.  *
     486,800  
  26,700  
Expedia, Inc.  *
     639,465  
  17,000  
Family Dollar Stores, Inc.
     448,800  
  15,000  
Guess?, Inc.
     555,600  
  3,000  
Interactive Data Corp.
     78,630  
  17,000  
International Game Technology
     365,160  
  13,000  
Jack in the Box, Inc.  *
     266,370  
  4,000  
Jos. A. Bank Clothiers, Inc.  *
     179,080  
  11,000  
LKQ Corp.  *
     203,940  
  5,800  
National Presto Industries, Inc.
     501,758  
  2,000  
Netflix, Inc.  *
     92,340  
  2,000  
O'Reilly Automotive, Inc.  *
     72,280  
  14,000  
Panera Bread Co. Class A *
     770,000  
  5,000  
Peet's Coffee & Tea, Inc.  *
     141,150  
  2,000  
PEP Boys-Manny Moe & Jack
     19,540  
  12,000  
PF Chang's China Bistro, Inc.  *
     407,640  
  10,000  
Priceline.com, Inc.  *
     1,658,200  
  22,000  
Ross Stores, Inc.
     1,050,940  
  23,000  
Shaw Communications, Inc. Class B
     414,230  
  4,000  
Strayer Education, Inc.
     870,720  
  30,000  
TJX Companies, Inc. (The)
     1,114,500  
  9,100  
Unifirst Corp.
     404,495  
  10,000  
Warnaco Group, Inc. (The)  *
     438,600  
  10,000  
WMS Industries, Inc.  *
     445,600  
  28,000  
Yum! Brands, Inc.
     945,280  
            18,144,742  
               
     
CONSUMER STAPLES  (10.0%)
        
  2,000  
British American Tobacco PLC ADR
     126,500  
  13,200  
Casey's General Stores, Inc.
     414,216  
  2,000  
Chattem, Inc.  *
     132,820  
  11,000  
Church & Dwight Co., Inc.
     624,140  
  200  
Coca-Cola Enterprises, Inc.
     4,282  
  33,000  
Cott Corp.  *
     242,550  
  17,000  
CVS Caremark Corp.
     607,580  
  29,000  
Diamond Foods, Inc.
     919,880  
  30,000  
Flowers Foods, Inc.
     788,700  
  24,500  
Green Mountain Coffee Roasters, Inc.  *
     1,809,080  
  7,000  
Hansen Natural Corp.  *
     257,180  
  23,000  
J&J Snack Foods Corp.
     993,370  
  12,900  
Lancaster Colony Corp.
     661,383  
  8,300  
Lance, Inc.
     214,306  
  6,000  
Molson Coors Brewing Co. Class B
     292,080  
  28,000  
TreeHouse Foods, Inc.  *
     998,760  
            9,086,827  
 
Shares
      
Value
  
           
   
ENERGY  (1.2%)
      
  1,000  
Core Laboratories N.V.
   $ 103,090  
  14,200  
Dresser-Rand Group, Inc.  *
     441,194  
  3,000  
Enbridge, Inc.
     116,400  
  11,000  
Southwestern Energy Co.  *
     469,480  
            1,130,164  
               
     
FINANCIALS  (1.7%)
        
  13,000  
AFLAC, Inc.
     555,620  
  4,000  
Capitol Federal Financial
     131,680  
  17,000  
Hudson City Bancorp, Inc.
     223,550  
  23,000  
Knight Capital Group, Inc. Class A *
     500,250  
  2,000  
Stifel Financial Corp.  *
     109,800  
            1,520,900  
               
     
HEALTH CARE  (21.4%)
        
  15,000  
Allergan, Inc.
     851,400  
  14,000  
AmerisourceBergen Corp.
     313,320  
  2,000  
Bio-Rad Laboratories, Inc. Class A *
     183,760  
  19,400  
Catalyst Health Solutions, Inc.  *
     565,510  
  20,000  
Cerner Corp.  *
     1,496,000  
  6,000  
Chemed Corp.
     263,340  
  28,000  
Computer Programs & Systems, Inc.
     1,159,480  
  4,000  
Covance, Inc.  *
     216,600  
  6,000  
DENTSPLY International, Inc.
     207,240  
  1,000  
Dionex Corp.  *
     64,970  
  19,000  
Edwards Lifesciences Corp.  *
     1,328,290  
  4,000  
ev3, Inc.  *
     49,240  
  13,000  
Express Scripts, Inc.  *
     1,008,540  
  23,000  
Gilead Sciences, Inc.  *
     1,071,340  
  9,000  
Haemonetics Corp.  *
     505,080  
  6,000  
Hospira, Inc.  *
     267,600  
  27,000  
Illumina, Inc.  *
     1,147,500  
  2,200  
Intuitive Surgical, Inc.  *
     576,950  
  7,000  
Johnson & Johnson
     426,230  
  6,000  
Laboratory Corporation of America Holdings  *
     394,200  
  4,000  
Life Technologies Corp.  *
     186,200  
  14,000  
Medco Health Solutions, Inc.  *
     774,340  
  8,000  
MEDNAX, Inc.  *
     439,360  
  16,000  
Novo Nordisk A/S ADR
     1,007,200  
  6,000  
NuVasive, Inc.  *
     250,560  
  13,000  
Owens & Minor, Inc.
     588,250  
  22,000  
ResMed, Inc.  *
     994,400  
  4,000  
Sanofi-Aventis ADR
     147,800  
  23,000  
Teva Pharmaceutical Industries Ltd. ADR
     1,162,880  
  13,000  
Thermo Fisher Scientific, Inc.  *
     567,710  
  28,000  
Thoratec Corp.  *
     847,560  
  200  
Universal Health Services, Inc. Class B
     12,386  
  15,000  
VCA Antech, Inc.  *
     403,350  
            19,478,586  
               
     
INDUSTRIALS  (12.3%)
        
  7,000  
Alliant Techsystems, Inc.  *
     544,950  
  45,000  
Applied Signal Technology, Inc.
     1,047,150  
  14,000  
C.H. Robinson Worldwide, Inc.
     808,500  
  5,000  
Copart, Inc.  *
     166,050  
  15,100  
Cubic Corp.
     595,997  
  4,000  
Dun & Bradstreet Corp. (The)
     301,280  
  15,000  
Elbit Systems Ltd.
     1,022,250  
  4,000  
FTI Consulting, Inc.  *
     170,440  
 
 
1
 
 
The Value Line Fund, Inc.
   
 
September 30, 2009
 
Shares
      
Value
  
           
  16,000  
IHS, Inc. Class A  *
   $ 818,080  
  13,000  
Iron Mountain, Inc.  *
     346,580  
  12,000  
L-3 Communications Holdings, Inc.
     963,840  
  3,000  
Middleby Corp. (The)  *
     165,030  
  17,000  
Oshkosh Corp.
     525,810  
  50,000  
Rollins, Inc.
     942,500  
  2,000  
Stantec, Inc.  *
     50,200  
  10,000  
Stericycle, Inc.  *
     484,500  
  12,000  
Tetra Tech, Inc.  *
     318,360  
  1,000  
Universal Forest Products, Inc.
     39,460  
  19,000  
URS Corp.  *
     829,350  
  10,000  
Valmont Industries, Inc.
     851,800  
  2,000  
W.W. Grainger, Inc.
     178,720  
            11,170,847  
               
     
INFORMATION TECHNOLOGY  (12.6%)
        
  17,000  
Advent Software, Inc.  *
     684,250  
  5,000  
Amphenol Corp. Class A
     188,400  
  4,000  
ANSYS, Inc.  *
     149,880  
  200  
Apple, Inc.  *
     37,074  
  38,000  
Cognizant Technology Solutions Corp. Class A  *
     1,469,080  
  18,000  
Dolby Laboratories, Inc. Class A  *
     687,420  
  7,000  
Equinix, Inc.  *
     644,000  
  5,000  
F5 Networks, Inc.  *
     198,150  
  18,000  
FactSet Research Systems, Inc.
     1,192,320  
  7,000  
Fiserv, Inc.  *
     337,400  
  700  
Google, Inc. Class A *
     347,095  
  33,000  
Informatica Corp.  *
     745,140  
  1,200  
International Business Machines Corp.
     143,532  
  5,000  
j2 Global Communications, Inc.  *
     115,050  
  2,200  
MasterCard, Inc. Class A
     444,730  
  5,000  
MAXIMUS, Inc.
     233,000  
  7,000  
McAfee, Inc.  *
     306,530  
  10,000  
MICROS Systems, Inc.  *
     301,900  
  25,000  
Open Text Corp.  *
     933,250  
  51,000  
Oracle Corp.
     1,062,840  
  7,000  
OSI Systems, Inc.  *
     128,030  
  29,000  
Sybase, Inc.  *
     1,128,100  
  200  
Tessera Technologies, Inc.  *
     5,578  
            11,482,749  
               
     
MATERIALS  (7.2%)
        
  8,000  
Airgas, Inc.
     386,960  
  10,000  
Ball Corp.
     492,000  
  31,000  
Calgon Carbon Corp.  *
     459,730  
  37,000  
Crown Holdings, Inc.  *
     1,006,400  
  24,000  
FMC Corp.
     1,350,000  
  7,000  
NewMarket Corp.
     651,280  
  8,000  
Rock-Tenn Co. Class A
     376,880  
  7,000  
Scotts Miracle-Gro Co. (The) Class A
     300,650  
  12,000  
Sigma-Aldrich Corp.
     647,760  
  16,000  
Silgan Holdings, Inc.
     843,680  
            6,515,340  
               
     
TELECOMMUNICATION SERVICES  (1.6%)
        
  34,000  
American Tower Corp. Class A *
     1,237,600  
  2,500  
Shenandoah Telecommunications Co.
     44,875  
  2,000  
Telefonica S.A. ADR
     165,820  
            1,448,295  
 
Shares
      
Value
  
           
   
UTILITIES  (3.1%)
      
  16,000  
FPL Group, Inc.
   $ 883,680  
  16,000  
ITC Holdings Corp.
     727,200  
  3,000  
Ormat Technologies, Inc.
     122,460  
  17,000  
UGI Corp.
     426,020  
  14,000  
Wisconsin Energy Corp.
     632,380  
            2,791,740  
               
     
TOTAL COMMON STOCKS AND TOTAL INVESTMENT SECURITIES (1) (91.1%)
(Cost $67,345,767)
     82,770,190  
 
Principal
Amount
      
Value
  
           
SHORT-TERM INVESTMENTS (8.6%)
      
   
REPURCHASE AGREEMENTS (2) (8.6%)
      
$ 7,800,000  
With Morgan Stanley, 0.01%, dated 9/30/09, due 10/1/09, delivery value $7,800,002 (collateralized by $7,925,000 U.S. Treasury Notes 1.3750%, due 03/15/12, with a value of $7,969,140)
     7,800,000  
               
     
TOTAL SHORT-TERM INVESTMENTS (3)
(Cost $7,800,000)
     7,800,000  
               
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES (0.3%)
     271,217  
               
NET ASSETS (4) (100%)
   $ 90,841,407  
               
NET ASSET VALUE OFFERING AND REDEMPTION PRICE, PER OUTSTANDING SHARE
($90,841,407 ÷ 14,004,899 shares outstanding)
   $ 6.49  
                              
*
Non-income producing.
(1)
Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs established by FASB ASC 820-10, Fair Value Measurements and Disclosures.
(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 $75,145,767, aggregate gross unrealized appreciation was $15,956,126, aggregate gross unrealized depreciation was $531,703 and the net unrealized appreciation was $15,424,423.
ADR
American Depositary Receipt.

 
2
 

In accordance with 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.

The following is a summary of the inputs used as of September 30, 2009 in valuing the Fund’s investments carried at value:

Investments in Securities:
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Assets
                        
Common Stocks
   $ 82,770,190     $ 0     $ 0     $ 82,770,190  
Short-Term Investments
     0       7,800,000       0       7,800,000  
                                 
Total Investments in Securities
   $ 82,770,190     $ 7,800,000     $ 0     $ 90,570,190  
 
 
3
 
 
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.
 
 
4
 
 
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:
November 25, 2009
  

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:
November 25, 2009
  
 
 
 
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