NOTE 8: INVESTMENTS

Realized gains (losses) on equity investments are computed using the specific identification method. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:

Level 1 - quoted prices in active markets for identical assets or liabilities.

Level 2 - observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - unobservable inputs supported by little or no market activity and are significant to the fair value of the assets or liabilities.

Cash and cash equivalents have carrying values that approximate fair value using Level 1 prices. Receivables, accounts payable, and short and long-term debt have carrying values that approximate fair values using Level 2 inputs. Equity securities for which the Company has no immediate plan to sell but that may be sold in the future are classified as available for sale. If the fair value of the equity security is readily determinable, it is carried at fair value and unrealized gains and losses are recorded, net of related income tax effects, in stockholders' equity. Realized gains and losses, based on the specifically identified cost of the security, are included in net income (loss). The Company's valuation techniques used to measure the fair value of its marketable equity securities were derived from quoted prices in active markets for identical assets (Level 1 prices). Equity securities whose fair value is not readily determinable are carried at cost unless the Company is aware of significant adverse effects which have impaired the investments. Investments that are recorded at cost are evaluated quarterly for events that may adversely impact their carrying value.

The aggregate amount of equity securities carried at cost, for which the Company has not elected the fair value option, was $2.6 million as of June 30, 2013. The remaining $22.1 million in equity security investments are stated at fair value. As of December 31, 2012, the aggregate amount of equity securities carried at cost was $2.6 million and the remaining $24.8 million in equity security investments were stated at fair value. The following table presents the fair value of the Company's available-for-sale equity securities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2013 and December 31, 2012:



			Fair Value Measurements Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
June 30, 2013:			Assets		Inputs		Inputs
Assets:	Fair Value		(Level 1)		(Level 2)		(Level 3)
Available-for-sale equity securities
Cement industry	$	11,404,329	$	11,404,329	$	0	$	0
General building materials industry		5,348,821		5,348,821		0		0
Oil and gas refining and marketing industry		4,830,060		4,830,060		0		0
Residential construction industry		553,924		553,924		0		0
Total assets measured at fair value	$	22,137,134	$	22,137,134	$	0	$	0



			Fair Value Measurements Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
December 31, 2012:			Assets		Inputs		Inputs
Assets:	Fair Value		(Level 1)		(Level 2)		(Level 3)
Available-for-sale equity securities
Cement industry	$	12,477,760	$	12,477,760	$	0	$	0
General building materials industry		5,751,005		5,751,005		0		0
Oil and gas refining and marketing industry		6,532,981		6,532,981		0		0
Total assets measured at fair value	$	24,761,746	$	24,761,746	$	0	$	0

There were no transfers between levels and there were no significant changes in the valuation techniques during the period ended June 30, 2013. No reconciliation (roll forward) of the beginning and ending balances for Level 3 is presented since the Company does not have any assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at either of the dates reported in the table above. The Company has no liabilities at either date requiring remeasurement to fair value on a recurring basis in the balance sheet. The Company has no additional assets or liabilities at either date requiring remeasurement to fair value on a non-recurring basis in the balance sheet.

The following table shows the unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual trade lots of securities have been in a continuous unrealized loss position at June 30, 2013 and December 31, 2012:



Available-for-sale equity securities	Less than 12 Months				12 Months or Greater				Total
			Unrealized				Unrealized				Unrealized
June 30, 2013	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Residential construction industry	$	553,924	$	52,050	$	0	$	0	$	553,924	$	52,050
Total	$	553,924	$	52,050	$	0	$	0	$	553,924	$	52,050


December 31, 2012
Cement industry	$	0	$	0	$	15,379	$	2,737	$	15,379	$	2,737
Total	$	0	$	0	$	15,379	$	2,737	$	15,379	$	2,737

Impairment Analysis

The Company owns stock in two privately-owned companies accounted for by the cost method; one in the brick industry and the other in the ethanol production industry. These investments were evaluated at June 30, 2013 and December 31, 2012 for impairment. The evaluations of the ethanol production industry investment for each period's impairment analysis were based on the specific identification of shares held and quoted prices in markets that are not active (Level 2 inputs) and no impairments were identified. Since there is not an active market for the brick industry investment, the Company relied on a discounted future net cash flow valuation (Level 3 inputs) of the issuer for each period's impairment analysis to determine if the average cost of shares were impaired and no impairment was identified. As a result of those evaluations, the Company does not consider these cost-method investments to be impaired at June 30, 2013 or December 31, 2012.

June 30, 2013 - - The Company's investments in available-for-sale equity securities carried at fair value were evaluated for impairment by comparing the specifically identified cost of each investment to market price. As a result of these evaluations, the Company did not identify any other-than-temporary impairments in investments which would have resulted in a recognized loss in earnings of equity investments. The Company did identify some specific investments in available-for-sale equity securities that were not other-than-temporarily impaired resulting in the recognition of unrealized losses (see table above). These unrealized losses relate to investments in the common stock of one company in the residential construction industry. When the Company evaluated impairment by comparing the specifically identified cost of the investment to market price as of July 22, 2013, the residential construction industry securities’ price per share increased slightly from June 30, 2013 levels which reduced temporary impairments 9.5%. The Company evaluated the near-term prospects in relation to the severity of the impairments and the duration of the impairments. Based on that evaluation, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2013.

December 31, 2012 - - The Company's investments in marketable equity securities carried at fair value were evaluated every quarter for impairment by comparing the specifically identified cost of each investment to market price. As a result of these evaluations, the Company did not identify any other-than-temporary impairments in investments which would have resulted in a recognized loss in earnings of equity investments. The Company did identify some specific investments in available-for-sale equity securities that were not other-than-temporarily impaired resulting in the recognition of unrealized losses (see table above). These unrealized losses relate to investments in the common stock of one company in the cement industry. When the Company evaluated the impairment by comparing the specifically identified cost of each investment to market price as of January 25, 2013, the cement industry securities slightly recovered their temporary impairments. The Company evaluated the near-term prospects in relation to the severity of the impairments and the duration of the impairments. Based on that evaluation, the Company did not consider these investments to be other-than-temporarily impaired at December 31, 2012.

Investment Results - - The investment results for June 30, 2013 and December 31, 2012 are as follows for available-for-sale equity securities carried at fair value:



	Amortized		Gross Unrealized Holding				Fair
June 30, 2013	Cost		Gains		Losses		Value
Available-for-sale equity securities
Cement industry	$	2,940,000	$	8,465,000	$	0	$	11,405,000
General building materials industry		3,600,000		1,750,000		0		5,350,000
Oil and gas refining and marketing industry		340,000		4,490,000		0		4,830,000
Residential construction industry		610,000		0		55,000		555,000
Total available-for-sale equity securities	$	7,490,000	$	14,705,000	$	55,000	$	22,140,000

Total gross unrealized gains, net of losses			$	14,650,000
Less: Deferred taxes on unrealized holding gains				5,860,000
Unrealized gains recorded in equity, net of deferred tax			$	8,790,000



	Amortized		Gross Unrealized Holding				Fair
December 31, 2012	Cost		Gains		Losses		Value
Available-for-sale equity securities
Cement industry	$	4,190,000	$	8,290,000	$	0	$	12,480,000
General building materials industry		3,600,000		2,150,000		0		5,750,000
Oil and gas refining and marketing industry		470,000		6,060,000		0		6,530,000
Total available-for-sale equity securities	$	8,260,000	$	16,500,000	$	0	$	24,760,000

Total gross unrealized gains			$	16,500,000
Less: Deferred taxes on unrealized holding gains				6,600,000
Unrealized gains recorded in equity, net of deferred tax			$	9,900,000

Investment-related cash flow information for June 30, 2013 and December 31, 2012 is as follows:


		2013		2012
Proceeds from sale of equity securities	$	5,262,458	$	6,799,194
Realized gain on equity securities	$	3,881,872	$	4,173,141
Payment for purchases of equity securities	$	605,974	$	0