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AMERISTOCK MUTUAL FUND INC - Notes to Mutual Funds Financial Statements - 3-7-2005

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AMERISTOCK MUTUAL FUND INC - Notes to Mutual Funds Financial Statements - 3-7-2005 Powered By Docstoc
					NOTES TO FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES The Ameristock Mutual Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment
company, organized as a corporation under the laws of the State of Maryland on June 15, 1995. The Fund's
investment objective is to seek total return through capital appreciation and current income by investing primarily
in equity securities, and under normal market conditions the Fund will invest at least 80% of the value of its net
assets in common stocks. The authorized capital stock of the Fund consists of 100 million shares of common
stock, par value $.005 per share.

Davis Park Series Trust (the "Trust") is registered under the Investment Company Act of 1940, as amended, as
an open-end management investment company organized as a Delaware business trust by a Declaration of Trust
dated August 17, 2000. The Trust currently has one active investment portfolio, the Ameristock Focused Value
Fund, referred to as a "portfolio" of the Trust. The Ameristock Focused Value Fund's investment objective is to
seek capital appreciation and it pursues that objective by principally investing in common stocks of companies of
all sizes headquartered in the United States. The authorized capital stock of the portfolio consists of an unlimited
number of no par value shares of common stock. The Ameristock Focused Value Fund is considered a "non-
diversified" fund.

                                            SECURITY VALUATION

Investments in securities are carried at market value. All equity securities that are traded on a national securities
exchange are valued at the last sale price at the time of the close of the New York Stock Exchange (NYSE). If
on a particular day an exchange-listed security does not trade, then the mean between the closing bid and asked
prices will be used. In the case of securities listed on more than one national securities exchange the last quoted
sale, up to the time of valuation, on the exchange on which the security is principally traded should be used. If
there were no sales on that exchange, the last quoted sale on the other exchange should be used.

For securities that are traded on NASDAQ, the NASDAQ Official Closing Price or NASDAQ Closing Cross
price is used, whichever is available. All non-NASDAQ equity securities that are not traded on a listed exchange
are valued at the last sale price at the close of the NYSE. If a nonexchange listed security does not trade on a
particular day, or if a last sales price, Official Closing Price or Closing Cross price is not available, then the mean
between the closing bid and asked price will be used.

Debt securities are valued by using market quotations or a matrix method provided by the Funds' pricing service.
If prices are not available from the pricing service, then quotations will be obtained from broker/dealers and the
securities will be valued at the mean between the bid and the offer. In the absence of available quotations the
securities will be priced at "fair value".

Securities having a remaining maturity of 60 days or less are valued at amortized cost which approximates market
value.

                                                          23
The cost of securities sold is determined on the identified cost basis. When market quotations are not readily
available or when events occur that make established valuation methods unreliable, securities of the Fund may be
valued at fair value determined in good faith by or under the direction of the Board of Directors/Trustees.

Security transactions are recorded on the dates transactions are entered into, which is the trade date.

                                                      INCOME

Dividend income and distributions to shareholders are recorded on the exdividend date. Interest income is
recorded as earned. Discounts and premiums on securities purchased are amortized over the life of the respective
securities.

                                                 INCOME TAXES

As qualified regulated investment companies under Subchapter M of the Internal Revenue Code, neither the Fund
nor the Trust is subject to income taxes to the extent that it distributes all of its taxable income for the fiscal year.

It is the policy of the Fund and the Trust to distribute annually, prior to the end of the calendar year, dividends
sufficient to satisfy excise tax requirements of the Internal Revenue Service. This Internal Revenue Service
requirement may cause an excess of distributions over the book year-end accumulated income. In addition, it is
the policy of the Fund and the Trust to distribute annually, after the end of the fiscal year, any remaining net
investment income and net realized capital gains.

At June 30, 2004 the Ameristock Mutual Fund, Inc. and the Ameristock Focused Value Fund had available for
federal income tax purposes unused capital loss carryovers as follows:

             EXPIRING     AMERISTOCK MUTUAL FUND, INC.    AMERISTOCK FOCUSED VALUE FUND
             ---------------------------------------------------------------------------
             2011                $ 8,228,878                       $ 1,268,021
             2012                   2,702,924                         2,894,688
             ---------------------------------------------------------------------------




The Ameristock Mutual Fund, Inc. intends to elect to defer to its fiscal year ending June 30, 2005, $67,967 of
losses recognized during the period November 1, 2003 to June 30, 2004.

                                                    ESTIMATES

The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.

                                                           24
                                                       OTHER

Accounting principles generally accepted in the United States of America require that permanent financial
reporting tax differences relating to shareholders distributions be reclassified to paid-in-capital or gains/losses.

                                        REPURCHASE AGREEMENTS

The Ameristock Mutual Fund, Inc., through its custodian, receives delivery of underlying securities, whose
market value, including interest, is required to be at least 102% of the resale price. The Fund's adviser is
responsible for determining that the value of these underlying securities remains at least equal to 102% of the
resale price. If the seller defaults, the Fund would suffer a loss to the extent that the proceeds from the sale of the
underlying securities were less than the resale price.

2. INVESTMENT ADVISORY AGREEMENTS The Fund has entered into an investment advisory agreement
with Ameristock Corporation (the "Adviser"). The Adviser receives from the Fund as compensation for its
services to the Fund an annual fee of 1% of the Fund's average daily net assets for the first $100 million in net
assets and 0.75% of average daily net assets in excess of $100 million. The Adviser pays all operating expenses
of the Fund except for taxes, interest, brokerage commissions, noninterested directors fees and extraordinary
expenses. The Adviser earned management fees of $6,891,863 from the Fund for the six months ended
December 31, 2004.

The Trust has entered into an investment advisory agreement with the Adviser for the portfolio. The Adviser
receives from the Trust as compensation for its services to the Ameristock Focused Value Fund an annual fee of
1.35% of the portfolio's average daily net assets. The Adviser pays all operating expenses of the Trust except for
taxes, interest, brokerage commissions and extraordinary expenses. The Adviser earned management fees of
$86,058 from the Ameristock Focused Value Fund for the six months ended December 31, 2004.

3. RELATED PARTY TRANSACTIONS Certain owners of the Adviser are also owners and or directors of
the Fund and Trust. These individuals may receive benefits from any management fees paid to the Adviser.

Shareholders holding more than 5% of the Funds' outstanding shares as of December 31, 2004 constituted
77.95% of the Ameristock Mutual Fund, Inc., and 64.33% of the Ameristock Focused Value Fund,
respectively. The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a
fund creates a presumption of control of a fund under section 2(a)(9) of the Investment Company Act of 1940.
As of December 31, 2004, Charles Schwab & Co. for the benefit of its customers owned of record in aggregate
more than 56% of the Ameristock Mutual Fund, Inc. As of December 31, 2004, Fiserv Securities Corp. for the
benefit of its customers owned of record in aggregate more than 25% of the Ameristock Focused Value Fund.

                                                          25
The Directors of the Fund who are employees or Directors of the Investment Adviser receive no compensation
from the Fund. Each of the independent Directors is paid $28,000 per year, payable quarterly and is reimbursed
for the expenses of attending meetings.

4. CAPITAL STOCK AND DISTRIBUTION At December 31, 2004, 100 million shares of capital ($.005 par
value) were authorized, and paid in capital amounted to $1,673,698,340 for the Ameristock Mutual Fund, Inc.
At December 31, 2004, there was an unlimited number of no par value shares of capital authorized for the
Ameristock Focused Value Fund and paid in capital amounted to $18,621,309. Transactions in capital stock
were as follows:

                                 AMERISTOCK MUTUAL FUND, INC.

                                                           FOR THE SIX MONTHS         FOR THE YEAR
                                                                 ENDED                   ENDED
                                                                12/31/04               06/30/04
------------------------------------------------------------------------------------------------------
Shares Sold                                                          4,805,951              18,730,701
Shares Issued in Reinvestment of
   Dividends and Distributions                                       1,048,655                  766,254
------------------------------------------------------------------------------------------------------
Total                                                                5,854,606              19,496,955
Shares Redeemed                                                    (11,063,604)            (16,776,077)
------------------------------------------------------------------------------------------------------
Net Increase in Shares                                              (5,208,998)              2,720,878
======================================================================================================
Shares Outstanding-Beginning of Year                                47,295,648              44,574,770
Shares Outstanding-End of Year                                      42,086,650              47,295,648
======================================================================================================




                               AMERISTOCK FOCUSED VALUE FUND

                                                           FOR THE SIX MONTHS         FOR THE YEAR
                                                                 ENDED                   ENDED
                                                                12/31/04                06/30/03
------------------------------------------------------------------------------------------------------
Shares Sold                                                              17,580                  85,146
Shares Issued in Reinvestment of
   Dividends and Distributions                                               --                      --
------------------------------------------------------------------------------------------------------
Total                                                                    17,580                  85,146
Shares Redeemed                                                        (136,686)               (371,347)
------------------------------------------------------------------------------------------------------
Net Decrease in Shares                                                 (119,106)               (286,201)
======================================================================================================
Shares Outstanding-Beginning of Year                                    615,920                 902,121
Shares Outstanding-End of Year                                          496,814                 615,920
======================================================================================================




5. UNREALIZED APPRECIATION AND DEPRECIATION ON INVESTMENTS

                                                              AMERISTOCK               AMERISTOCK
                                                             MUTUAL FUND,                FOCUSED
AS OF DECEMBER 31, 2004                                          INC.                  VALUE FUND
------------------------------------------------------------------------------------------------------
Gross Appreciation (excess of value over tax cost)        $        246,124,422    $          1,058,965
Gross Depreciation (excess of tax cost over value)                (228,176,074)             (1,641,946)
------------------------------------------------------------------------------------------------------
Net Unrealized Depreciation                               $         17,948,348    $           (582,981)
======================================================================================================
Cost of Investments for Income Tax Purposes               $      1,691,543,506    $         12,879,114
======================================================================================================




                                                      26
6. CLASSIFICATION OF DISTRIBUTIONS Net investment income (loss) and net realized gain (loss) may
differ for financial statement and tax purposes. The character of distributions made during the year from net
investment income or net realized gains may differ from its ultimate characterization for federal income tax
purposes. Net assets were unaffected by the reclassifications.

For the year ended June 30, 2004, the Ameristock Focused Value Fund recorded the following reclassifications
to the accounts listed below:

                                                         (OVER)/ UNDISTRIBUTED    ACCUMULATED
                                            PAID-IN-         NET INVESTMENT       NET REALIZED
                                            CAPITAL             INCOME            GAIN (LOSS)
  --------------------------------------------------------------------------------------------
  INCREASE (DECREASE)
  Ameristock Mutual Fund, Inc.            $   (96,628)   $          (1,302,357)   $ 1,398,985
  Ameristock Focused Value Fund           $   (94,782)   $              96,952    $     (2,170)
  ============================================================================================




The tax character of the distributions paid during the year ended June 30, 2004 and the year ended June 30,
2003 was as follows:

                                          AMERISTOCK MUTUAL FUND, INC.     AMERISTOCK FOCUSED VALUE FUND
                                          YEAR ENDED       YEAR ENDED       YEAR ENDED       YEAR ENDED
                                           6/30/04          06/30/03          6/30/04         06/30/03
---------------------------------------------------------------------------------------------------------
Distributions paid from:
Ordinary Income                         $   30,183,836   $   19,670,581                --  $    1,484,592
Long-Term Capital Gain                               --      15,757,550                --         195,875
---------------------------------------------------------------------------------------------------------
Total                                   $   30,183,836   $   35,428,131                --  $    1,680,467
=========================================================================================================




As of December 31, 2004, the components of distributable earnings on a tax basis were as follows:

                                                          AMERISTOCK MUTUAL         AMERISTOCK FOCUSED
                                                              FUND, INC,                VALUE FUND
------------------------------------------------------------------------------------------------------
(Over)Undistributed net investment income                 $            (50,259)   $             (47,065)
Accumulated net realized loss                                       14,715,580               (5,580,973)
Net unrealized appreciation/depreciation                            17,948,348                 (582,981)
------------------------------------------------------------------------------------------------------
Total                                                     $         32,613,669    $          (6,211,019)
======================================================================================================




7. SECURITIES LENDING The Ameristock Mutual Fund, Inc. receives compensation in the form of fees, or it
retains a portion of interest on the investment of any cash received as collateral. The Fund also continues to
receive interest or dividends on the securities loaned. The loans are secured by collateral at least equal, at all
times, to the market value of the securities loaned plus accrued interest. Gain or loss in the market value of the
securities loaned that may occur during the term of the loan will be for the account of the Fund. At December,
31, 2004, the Ameristock Mutual Fund, Inc. had no equity securities on loan.

                                                        27
8. REDEMPTION FEE A redemption fee of 1% payable to and retained by Ameristock Focused Value Fund is
imposed on any redemption of shares within three years of the date of purchase. The 1% fee is imposed on the
current net asset value of the redeemed shares or the original cost of those shares, whichever is less.

A redemption fee will not be imposed on redemption of shares which were purchased more than three years
prior to the redemption, or on redemptions of shares derived from reinvestment of distributions. In determining
whether a redemtion fee is applicable, it will be assumed that such shares are redeemed first. Therefore, a
shareholder will not have to pay the redemption fee if the dollar amount of shares redeemed is no greater than the
current dollar value of shares purchased more than three years ago (even if the shareholder bought additional
shares more recently than that), plus the current dollar value of the shares derived from reinvestment of
distributions.

No redemption fees are payable by shareholders of Ameristock Mutual Fund, Inc.

9. PORTFOLIO HOLDINGS The Fund files its complete schedule of portfolio holdings with the Commission
for the first and third quarters of each fiscal year on Form N-Q within 60 days after the end of the period. Copies
of the Fund's Forms N-Q are available without a charge, upon request, by contacting the Fund at 1-800-394-
5064 and on the Commission's website at http://www.sec.gov. You may also review and copy Form N-Q at the
Commission's Public Reference Room in Washington, D.C. For more information about the operation of the
Public Reference Room, please call the Commission at 1-800-SEC-0330.

10. SUBSEQUENT EVENTS On December 10, 2004 the Board of Trustees of Davis Park Series Trust, upon
the recommendation of Ameristock Corporation, approved a plan to liquidate and terminate the Ameristock
Focused Value Fund. In conjunction with the liquidation plan the Fund waived the 1% redemption fee on shares
redeemed within three years of purchase, beginning December 10, 2004. Effective January 14, 2005 the
Focused Value Fund was fully liquidated.

                                                        28
INTENTIONALLY LEFT BLANK

           29
INTENTIONALLY LEFT BLANK
INVESTMENT ADVISER
Ameristock Corporation
1320 Harbor Bay Parkway, Suite 145 Alameda, California 94502
ADMINISTRATOR, BOOKKEEPING AND PRICING AGENT AND TRANSFER AGENT

                                       ALPS Mutual Funds Services, Inc.
                                         1625 Broadway, Suite 2200
                                          Denver, Colorado 80202

DISTRIBUTOR
ALPS Distributors, Inc.
1625 Broadway, Suite 2200
Denver, Colorado 80202
CUSTODIAN
U.S. Bancorp
425 Walnut Street
Cincinnati, Ohio 45202
INDEPENDENT AUDITOR
Tait, Weller & Baker
1818 Market Street, Suite 2400
Philadelphia, Pennsylvania 19103
LEGAL COUNSEL

                                       Sutherland Asbill & Brennan LLP
                                       1275 Pennsylvania Avenue, N.W.
                                        Washington, D.C. 20004-2415

DIRECTORS-AMERISTOCK MUTUAL FUND, INC.
Alev M. Efendioglu
Nicholas D. Gerber
Stephen J. Marsh
Andrew F. Ngim
Steven A. Wood
TRUSTEES-DAVIS PARK SERIES TRUST
Alev M. Efendioglu
Nicholas D. Gerber
Stephen J. Marsh
Steven A. Wood

A description of the polices and procedures that the Adviser uses to determine how to vote proxies relating to
portfolio securities of the Funds, and information regarding how the funds voted such prioxies during the 12
month period ended June 30, 2004, is available (i) without charge through the fund's website at
www.ameristock.com; and (ii) on the Securities and Exchange Commission website at www.sec.gov.

ALPS DISTRIBUTORS, INC., distributor

Must be accompanied or preceded by a current prospectus which contains more information on fees, risks, and
expenses. Please read it carefully before investing or sending money. For more information, please call 1(800)
394-5064 or visit www.ameristock.com.
Ameristock Mutual Fund, Inc. Ameristock Focused Value Fund

                           SUPPLEMENT DATED MARCH 7, 2005 TO THE
                         SEMI-ANNUAL REPORT DATED DECEMBER 31, 2004

The following information supplements and should be read in conjunction with the information provided in the
Ameristock Mutual Fund, Inc. and Ameristock Focused Value Fund Semi-Annual Report dated December 31,
2004.

After the line item "Shares of Capital Stock Outstanding" under the section entitled "Net Asset Value Per Share"
on page 17 insert (100 million shares, $.005 par value and unlimited shares, no par value authorized for the
Ameristock Mutual Fund, Inc. and Ameristock Focused Value Fund, respectively).

In addition, the third table under "6. Classification of Distributions" on page 27 should be deleted in its entirety
and replaced with the following:

                                                             Ameristock Mutual              Ameristock Focused
                                                                 Fund, Inc.                    Value Fund
                                                             -----------------              -------------------
   (Over)distributed net investment income                      $   (50,259)                   $   (47,065)
   Accumulated net realized gain (loss)                          14,715,580                     (5,580,973)
                                                                -----------                    ------------
   Total                                                        $14,665,321                    $(5,628,038)
                                                                ===========                    ===========




This material must be accompanied or preceded by a prospectus. The Ameristock Funds are distributed by
ALPS Distributors, Inc.

Item 2. CODE OF ETHICS.

Not applicable to semi-annual report.

Item 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable to semi-annual report.

Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable to semi-annual report.

Item 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

Item 6. SCHEDULE OF INVESTMENTS.

Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.

Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

Item 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT
COMPANIES.

Not applicable.
Item 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANIES.

Not applicable.

Item 10. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS.

None.

Item 11. 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-3(c) under the Investment Company Act of 1940, as
amended) are effective based on their evaluation of these controls and procedures as of a date within 90 days of
the filing date of this document.
(b) There was no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d)
under the Investment Company Act of 1940, as amended) during the second fiscal quarter of the period covered
by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal
control over financial reporting.

Item 12. EXHIBITS.

(a)(1) Not applicable to semi-annual report.

(a)(2) The certifications required by Rule 30a-2(a) of the Investment Company Act of 1940, as amended, and
Section 302 of the Sarbanes-Oxley Act of 2002 is attached hereto as Ex99.Cert.

(a)(3) None.

(b) A certification for the Registrant's Principal Executive Officer and Principal Financial Officer, as required by
Rule 30a-2(b) of the Investment Company Act of 1940, as amended, and Section 906 of the Sarbanes-Oxley
Act of 2002 is attached hereto as Ex99.906Cert.
                                                 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.

                                      AMERISTOCK MUTUAL FUND,
                                               INC.

                                     By:    /s/ Nicholas D. Gerber
                                            ----------------------
                                            Nicholas D.Gerber
                                            President/Principal Executive
                                            Officer/ Treasurer/Principal
                                            Financial Officer

                                     Date: March 7, 2005




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/ Nicholas D. Gerber
                                            ----------------------
                                            Nicholas D.Gerber
                                            President/Principal Executive
                                            Officer/Treasurer/Principal
                                            Financial Officer




                                     Date: March 7, 2005
                                                   EX. 99.CERT

I, Nicholas D. Gerber, President, Principal Executive Officer, Treasurer and Principal Financial Officer of the
Ameristock Mutual Fund, Inc., certify that:

1. I have reviewed this report on Form N-CSR of the Ameristock Mutual Fund, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly
present in all material respects the financial condition, results of operations, changes in net assets, and cash flows
(if the financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the
periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the
Registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the Registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in
which this report is being prepared;

b. evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report
our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days
prior to the filing date of this report (the "Evaluation Date") based on such evaluation; and

c. disclosed in the report any change in the Registrant's internal control over financial reporting that occurred
during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably
likely to materially affect, the Registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed to the Registrant's auditors and the audit
committee of the Registrant's board of directors (or persons performing the equivalent functions);
a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize,
and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in
the Registrant's internal control over financial reporting.

          By:             /s/ Nicholas D. Gerber
                          ----------------------
                          Nicholas D. Gerber
                          President/Principal Executive Officer/Treasurer/Principal Financial
                          Officer



          Date:           March 7, 2005
                                           EXHIBIT 99.906CERT

                          CERTIFICATION PURSUANT TO SECTION 906 OF
                              THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, I, Nicholas D. Gerber, President, Principal Executive Officer, Treasurer
and Principal Financial Officer of Ameristock Mutual Fund, Inc. (the "Registrant"), hereby certify, to the best of
my knowledge, that the Registrant's report on Form N-CSR for the period ended December 31, 2004 (the
"Report"), which accompanies this certification, fully complies with the requirements of Section 13(a) or Section
15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly
presents, in all material respects, the financial condition and results of operations of the Registrant.

         By:   /s/Nicholas D. Gerber
               ---------------------
               Nicholas D. Gerber
               President/Principal Executive Officer/Treasurer/Principal Financial Officer


         Dated: March 7, 2005