N-Q 1 stock-nq.txt AXP STOCK SERIES, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-498 ----------- AXP STOCK SERIES, INC. -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 50606 AXP Financial Center, Minneapolis, Minnesota 55474 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Leslie L. Ogg - 901 S. Marquette Avenue, Suite 2810, Minneapolis, MN 55402-3268 -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (612) 330-9283 ----------------- Date of fiscal year end: 9/30 -------------- Date of reporting period: 12/31 -------------- AXP(R) STOCK FUND A FEEDER FUND INVESTING IN EQUITY PORTFOLIO PORTFOLIO HOLDINGS AT DEC. 31, 2004 Investments in Securities AXP Equity Portfolio Dec. 31, 2004 (Unaudited) (Percentages represent value of investments compared to net assets) Common stocks (96.1%) Issuer Shares Value(a) Aerospace & defense (4.5%) Boeing 115,460 $5,977,364 General Dynamics 10,866 1,136,584 Honeywell Intl 36,399 1,288,889 Lockheed Martin 247,686 13,758,957 Raytheon 62,202 2,415,304 Rockwell Automation 600,000 29,730,000 Rockwell Collins 23,054 909,250 United Technologies 433,220 44,773,286 Total 99,989,634 Automotive & related (0.6%) Dana 30,576 529,882 Delphi 111,477 1,005,523 Ford Motor 212,781 3,115,114 General Motors 151,189 6,056,631 Genuine Parts 42,125 1,856,028 Johnson Controls 25,635 1,626,284 Total 14,189,462 Banks and savings & loans (5.6%) Bank of America 1,304,709 61,308,276 Bank of New York 31,646 1,057,609 Comerica 33,526 2,045,757 First Horizon Natl 18,047 778,006 Natl City 146,869 5,514,931 US Bancorp 700,000 21,924,000 Washington Mutual 173,228 7,324,080 Wells Fargo & Co 400,000 24,860,000 Total 124,812,659 Beverages & tobacco (2.0%) Altria Group 483,218 29,524,619 Coca-Cola 256,089 10,660,985 Coca-Cola Enterprises 86,950 1,812,908 Reynolds American 33,230 2,611,878 Total 44,610,390 Broker dealers (1.4%) Bear Stearns Companies 16,407 1,678,600 JPMorgan Chase & Co 260,517 10,162,768 Lehman Brothers Holdings 23,750 2,077,650 Morgan Stanley 300,000 16,656,000 Total 30,575,018 Building materials & construction (0.2%) American Standard Companies 33,230(b) 1,373,064 Masco 47,016 1,717,494 Sherwin-Williams 12,550 560,107 Total 3,650,665 Chemicals (2.9%) Air Products & Chemicals 400,000 23,188,000 Dow Chemical 600,000 29,705,999 Eastman Chemical 12,819 740,041 EI du Pont de Nemours & Co 200,000 9,810,000 Engelhard 19,253 590,490 Total 64,034,530 Computer hardware (3.1%) Apple Computer 153,826(b) 9,906,394 Cisco Systems 215,525(b) 4,159,633 Dell 700,000(b) 29,498,000 EMC 1,000,000(b) 14,870,000 Sun Microsystems 2,000,000(b) 10,760,000 Total 69,194,027 Computer software & services (6.6%) Autodesk 155,734 5,910,105 Automatic Data Processing 32,245 1,430,066 Computer Sciences 200,000(b) 11,274,000 Convergys 40,151(b) 601,863 Electronic Data Systems 76,379 1,764,355 First Data 59,131 2,515,433 Google Cl A 80,000(b,d) 15,448,000 Intl Business Machines 300,000 29,574,000 Microsoft 2,500,000 66,775,000 NCR 10,806(b) 748,099 Oracle 680,701(b) 9,339,218 Symantec 95,930(b) 2,471,157 Total 147,851,296 Electronics (1.7%) Maxim Integrated Products 400,000 16,956,000 Xerox 400,000(b) 6,804,000 Xilinx 500,000 14,825,000 Total 38,585,000 Energy (7.3%) Amerada Hess 33,917 2,794,082 Anadarko Petroleum 87,059 5,642,294 Apache 300,000 15,171,000 Ashland 6,741 393,540 Burlington Resources 65,069 2,830,502 ChevronTexaco 170,600 8,958,206 ConocoPhillips 364,709 31,667,682 Devon Energy 94,734 3,687,047 EnCana 300,000(c) 17,118,000 Exxon Mobil 1,229,122 63,004,794 Marathon Oil 28,467 1,070,644 Occidental Petroleum 115,709 6,752,777 Sunoco 11,954 976,761 Valero Energy 66,405 3,014,787 Total 163,082,116 Energy equipment & services (0.8%) Baker Hughes 31,838 1,358,527 BJ Services 26,658 1,240,663 Schlumberger 100,000 6,695,000 Transocean 200,000(b) 8,478,001 Total 17,772,191 Finance companies (1.7%) Citigroup 763,302(f) 36,775,890 MGIC Investment 28,521 1,965,382 Total 38,741,272 See accompanying notes to investments in securities. -------------------------------------------------------------------------------- 1 -- AXP STOCK FUND -- PORTFOLIO HOLDINGS AT DEC. 31, 2004 Common stocks (continued) Issuer Shares Value(a) Financial services (2.7%) Capital One Financial 200,000 $16,842,000 Countrywide Financial 199,070 7,367,581 Fannie Mae 217,300 15,473,933 Goldman Sachs Group 100,000 10,404,000 MBNA 400,000 11,276,000 Total 61,363,514 Food (1.5%) Kellogg 300,000 13,398,000 WM Wrigley Jr 300,000 20,757,000 Total 34,155,000 Furniture & appliances (0.1%) Black & Decker 14,300 1,263,119 Stanley Works 23,118 1,132,551 Whirlpool 9,416 651,681 Total 3,047,351 Health care products (6.7%) Amgen 100,000(b) 6,415,000 Becton, Dickinson & Co 77,245 4,387,516 Biogen Idec 109,556(b) 7,297,525 Biomet 15,257 662,001 Boston Scientific 400,000(b) 14,220,000 Bristol-Myers Squibb 30,259 775,236 CR Bard 14,293 914,466 Gilead Sciences 447,067(b) 15,642,874 Johnson & Johnson 1,244,169(f) 78,905,199 Medtronic 67,081 3,331,913 Merck & Co 359,150 11,543,081 Schering Plough 131,921 2,754,510 Zimmer Holdings 54,155(b) 4,338,899 Total 151,188,220 Health care services (3.0%) Aetna 200,000 24,950,000 Cardinal Health 38,422 2,234,239 Caremark Rx 200,000(b) 7,886,000 Tenet Healthcare 120,323(b) 1,321,147 UnitedHealth Group 300,000 26,409,000 WellPoint 46,308(b) 5,325,420 Total 68,125,806 Home building (0.3%) Centex 31,880 1,899,410 KB HOME 17,711 1,849,028 Pulte Homes 29,157 1,860,217 Total 5,608,655 Household products (3.0%) Avon Products 61,349 2,374,206 Clorox 200,000 11,786,000 Colgate-Palmolive 500,000 25,580,000 Gillette 126,833 5,679,582 Procter & Gamble 400,000 22,032,000 Total 67,451,788 Indexes (1.6%) Nasdaq-100 Index Tracking 900,000(d) 35,919,000 Industrial transportation (1.0%) FedEx 32,233 3,174,628 Norfolk Southern 66,499 2,406,599 United Parcel Service Cl B 200,000 17,092,000 Total 22,673,227 Insurance (1.2%) ACE 12,982(c) 554,981 Allstate 84,967 4,394,493 Ambac Financial Group 14,927 1,225,955 Aon 68,918 1,644,383 CIGNA 63,848 5,208,082 Hartford Financial Services Group 17,947 1,243,907 Jefferson-Pilot 14,239 739,858 Lincoln Natl 13,175 615,009 Loews 46,908 3,297,632 Marsh & McLennan Companies 36,839 1,212,003 MBIA 13,375 846,370 Principal Financial Group 26,413 1,081,348 Prudential Financial 46,152 2,536,514 Torchmark 35,826 2,047,098 UnumProvident 76,942 1,380,339 Total 28,027,972 Leisure time & entertainment (1.5%) Brunswick 14,491 717,305 Eastman Kodak 115,450 3,723,263 Harley-Davidson 70,005 4,252,804 Mattel 29,992 584,544 Viacom Cl B 700,000 25,472,999 Total 34,750,915 Lodging & gaming (2.2%) Harrah's Entertainment 200,000 13,378,000 Intl Game Technology 500,000 17,190,000 Marriott Intl Cl A 300,000 18,894,000 Total 49,462,000 Machinery (1.3%) Caterpillar 300,000 29,253,000 Parker Hannifin 4,976 376,882 Total 29,629,882 Media (2.8%) eBay 233,728(b) 27,177,892 McGraw-Hill Companies 200,000 18,308,000 Yahoo! 471,769(b) 17,776,256 Total 63,262,148 Metals (0.1%) Phelps Dodge 7,248 716,972 United States Steel 12,985 665,481 Total 1,382,453 Multi-industry (9.2%) 3M 343,533 28,193,753 Accenture Cl A 400,000(b,c) 10,800,000 Danaher 400,000 22,964,000 Emerson Electric 8,368 586,597 General Electric 2,500,000 91,250,000 Monsanto 36,220 2,012,021 Textron 14,491 1,069,436 Tyco Intl 1,359,622(c) 48,592,890 Total 205,468,697 Paper & packaging (0.1%) Ball 14,586 641,492 Georgia-Pacific 39,715 1,488,518 Louisiana-Pacific 23,721 634,300 Temple-Inland 8,123 555,613 Total 3,319,923 Precious metals (1.1%) Barrick Gold 400,000(c) 9,688,000 Freeport-McMoRan Copper & Gold Cl B 400,000 15,292,000 Total 24,980,000 Restaurants (0.2%) Starbucks 81,534(b) 5,084,460 Retail -- drugstores (--%) CVS 17,546 790,798 Retail -- general (7.3%) Gap 65,962 1,393,117 Home Depot 1,205,998(f) 51,544,355 JC Penney 69,730 2,886,822 May Dept Stores 22,444 659,854 Nordstrom 210,761 9,848,862 OfficeMax 16,303 511,588 Sears, Roebuck and Co 69,713 3,557,454 Target 700,000 36,351,000 Toys "R" Us 43,276(b) 885,860 Wal-Mart Stores 1,043,723 55,129,448 Total 162,768,360 Retail -- grocery (0.9%) Albertson's 82,337 1,966,208 Kroger 127,460(b) 2,235,648 Safeway 114,493(b) 2,260,092 SUPERVALU 400,000 13,808,000 Total 20,269,948 Telecom equipment & services (3.7%) Corning 1,600,000(b) 18,832,000 Motorola 1,400,200 24,083,440 QUALCOMM 919,665 38,993,796 Tellabs 59,083(b) 507,523 Total 82,416,759 Textiles & apparel (0.2%) Liz Claiborne 15,157 639,777 Nike Cl B 25,940 2,352,499 VF 16,538 915,874 Total 3,908,150 See accompanying notes to investments in securities. -------------------------------------------------------------------------------- 2 -- AXP STOCK FUND -- PORTFOLIO HOLDINGS AT DEC. 31, 2004 Common stocks (continued) Issuer Shares Value(a) Utilities -- electric (3.1%) American Electric Power 21,814 $749,093 CenterPoint Energy 81,337 919,108 DTE Energy 20,212 871,744 Duke Energy 51,250 1,298,163 Edison Intl 108,510 3,475,575 PG&E 98,490(b) 3,277,747 PPL 300,000 15,984,000 Public Service Enterprise Group 28,797 1,490,821 Southern 500,000 16,760,000 TECO Energy 42,883 657,825 TXU 358,965(d) 23,174,780 Total 68,658,856 Utilities -- telephone (2.9%) AT&T 153,122 2,918,505 BellSouth 393,898 10,946,425 SBC Communications 363,825 9,375,770 Sprint 210,434 5,229,285 Verizon Communications 914,033 37,027,478 Total 65,497,463 Total common stocks (Cost: $1,905,268,301) $2,156,299,605 Preferred stocks (2.3%) Issuer Shares Value(a) Public Service Enterprise Group 10.25% Cv 415,000 $27,937,800 Schering-Plough 6.00% Cv 440,000 24,614,920 Total preferred stocks (Cost: $43,382,290) $52,552,720 Short-term securities (2.7%)(e) Issuer Effective Amount Value(a) yield payable at maturity U.S. government agency (2.5%) Federal Natl Mtge Assn Disc Nts 01-05-05 2.00% $15,000,000 $14,995,841 01-25-05 2.20 12,700,000 12,680,597 02-01-05 2.27 15,800,000 15,768,155 02-23-05 2.22 5,100,000 5,083,052 03-09-05 2.25 6,600,000 6,572,115 Total 55,099,760 Commercial paper (0.2%) Alpine Securitization 01-03-05 2.20 4,600,000 4,599,157 Total short-term securities (Cost: $59,700,545) $59,698,917 Total investments in securities (Cost: $2,008,351,136)(g) $2,268,551,242 Notes to investments in securities (a) Securities are valued by procedures described in Note 1 to the financial statements in the most recent Annual Report dated Sept. 30, 2004. (b) Non-income producing. (c) Foreign security values are stated in U.S. dollars. At Dec. 31, 2004, the value of foreign securities represented 3.9% of net assets. (d) At Dec. 31, 2004, security was partially or fully on loan. (e) Cash collateral received from security lending activity is invested in short-term securities and represents 2.4% of net assets. 0.3% of net assets is the Portfolio's cash equivalent position. (f) Partially pledged as initial margin deposit on the following open stock index futures contracts: Type of security Contracts Purchase contracts S&P 500 Index, March 2005 28 (g) At Dec. 31, 2004, the cost of securities for federal income tax purposes was approximately $2,008,351,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $282,161,000 Unrealized depreciation (21,961,000) ----------- Net unrealized appreciation $260,200,000 ------------ How to find information about the Fund's portfolio holdings (i) The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; (ii) The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov; (iii) The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iv) The Fund's complete schedule of portfolio holdings, as disclosed in its annual and semiannual shareholder reports and in its filings on Form N-Q, can be found at www.americanexpress.com/funds. -------------------------------------------------------------------------------- 3 -- AXP STOCK FUND -- PORTFOLIO HOLDINGS AT DEC. 31, 2004 S-6351-80 A (2/05) Item 2. Control and Procedures. (a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, the registrant's principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3. Exhibits. Separate certification for the Registrant's principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. 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. (Registrant) AXP STOCK SERIES, INC. By /s/ Paula R. Meyer ------------------ Paula R. Meyer President and Principal Executive Officer Date March 1, 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/ Paula R. Meyer ------------------ Paula R. Meyer President and Principal Executive Officer Date March 1, 2005 By /s/ Jeffrey P. Fox ------------------ Jeffrey P. Fox Treasurer and Principal Financial Officer Date March 1, 2005