INVESTMENTS IN MARKETABLE SECURITIES
 12 Months Ended
Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS IN MARKETABLE SECURITIES

3. INVESTMENTS IN MARKETABLE SECURITIES

 

Investments in marketable securities consist primarily of large capital corporate equity and debt securities in varying industries or issued by government agencies with readily determinable fair values (see table below). These securities are stated at market value, as determined by the most recently traded price of each security at the balance sheet date. Consistent with the Company’s overall current investment objectives and activities its entire marketable securities portfolio is classified as trading. Accordingly all unrealized gains and losses on this portfolio are recorded in income. For the years ended December 31, 2013 and 2012, net unrealized gains on trading securities were approximately $263,000 and $86,000, respectively.

 

    December 31, 2013     December 31, 2012  
    Cost     Fair     Unrealized     Cost     Fair     Unrealized  
Description   Basis     Value     Gain (loss)     Basis     Value     Gain (loss)  
Real Estate Investment Trusts   $ 345,000     $ 351,000     $ 6,000     $ 174,000     $ 122,000     ($ 52,000 )
                                                 
Mutual Funds, ETF & other     2,030,000       2,144,000       114,000       760,000       817,000       57,000  
                                                 
Other Equity Securities     962,000       1,163,000       201,000       570,000       557,000       (13,000 )
Total Equity Securities     3,337,000       3,658,000       321,000       1,504,000       1,496,000       (8,000 )
Debt Securities     1,088,000       1,065,000       (23,000 )     621,000       662,000       41,000  
Total   $ 4,425,000     $ 4,723,000     $ 298,000     $ 2,125,000     $ 2,158,000     $ 33,000  

 

As of December 31, 2013, debt securities are scheduled to mature as follows:

    Cost     Fair Value  
2019 – 2023   $  25,000     $  26,000  
2024 – thereafter     1,063,000       1,039,000  
    $ 1,088,000     $ 1,065,000  

 

Net gain from investments in marketable securities for the years ended December 31, 2013 and 2012 is summarized below:

 

Description   2013     2012  
Net realized (loss) gain from sales of marketable securities   ($ 119,000 )   $ 35,000  
Net unrealized gain from marketable securities     263,000       86,000  
Total net gain from investments in marketable securities   $ 144,000     $ 121,000  

 

Net realized (loss) gain from sales of marketable securities consisted of approximately $176,000 of losses net of $57,000 of gains for the year ended December 31, 2013. The comparable amounts in fiscal year 2012 were gains of approximately $152,000 and losses of $117,000.

Consistent with the Company’s overall current investment objectives and activities the entire marketable securities portfolio is classified as trading (as defined by U.S. generally accepted accounting principles). Unrealized gains or losses of marketable securities on hand are recorded in income.

Investment gains and losses on marketable securities may fluctuate significantly from period to period in the future and could have a significant impact on the Company’s net earnings. However, the amount of investment gains or losses on marketable securities for any given period has no predictive value and variations in amount from period to period have no practical analytical value. 

Investments in marketable securities give rise to exposure resulting from the volatility of capital markets. The Company attempts to mitigate its risk by diversifying its marketable securities portfolio.