N-Q 1 poi_bcg.txt N-Q BLUE CHIP GROWTH FUND Item 1. Schedule of Investments T. Rowe Price Blue Chip Growth Fund (Unaudited) September 30, 2004 PORTFOLIO OF INVESTMENTS (1) Shares Value (Cost and value in $ 000s) COMMON STOCKS 99.4% CONSUMER DISCRETIONARY 16.1% Automobiles 1.0% Harley-Davidson 1,300,000 77,272 77,272 Hotels, Restaurants & Leisure 3.5% Carnival 1,975,000 93,398 International Game Technology 2,865,000 102,997 Marriott, Class A 275,000 14,289 McDonald's 790,000 22,144 Starbucks * 740,000 33,640 266,468 Household Durables 0.4% Fortune Brands 380,000 28,154 28,154 Internet & Catalog Retail 1.3% Amazon.com * 170,000 6,946 eBay * 945,000 86,884 93,830 Media 5.3% Clear Channel Communications 740,000 23,066 Comcast, Special Class A * 1,400,000 39,088 EchoStar Communications, Class A * 1,580,000 49,170 McGraw-Hill 70,000 5,578 News Corporation ADR 1,270,000 39,789 Omnicom 220,000 16,073 Scripps, Class A 1,150,000 54,947 Time Warner * 4,060,000 65,528 Viacom, Class B 2,525,000 84,739 Washington Post, Class B 22,000 20,240 398,218 Multiline Retail 1.8% Kohl's * 310,000 14,939 Target 2,620,000 118,555 133,494 Specialty Retail 2.8% Best Buy 1,580,000 85,699 Home Depot 3,175,000 124,460 210,159 Total Consumer Discretionary 1,207,595 CONSUMER STAPLES 3.9% Beverages 1.1% Coca-Cola 700,000 28,035 PepsiCo 1,180,000 57,407 85,442 Food & Staples Retailing 1.9% Sysco 610,000 18,251 Wal-Mart 2,320,000 123,424 141,675 Household Products 0.3% Procter & Gamble 485,000 26,248 26,248 Personal Products 0.2% Gillette 340,000 14,192 14,192 Tobacco 0.4% Altria Group 590,000 27,754 27,754 Total Consumer Staples 295,311 ENERGY 5.1% Energy Equipment & Services 4.5% Baker Hughes 2,200,000 96,184 BJ Services 1,000,000 52,410 Schlumberger 1,640,000 110,388 Smith International * 1,300,000 78,949 337,931 Oil & Gas 0.6% ChevronTexaco 610,000 32,721 Murphy Oil 160,000 13,883 46,604 Total Energy 384,535 FINANCIALS 21.6% Capital Markets 7.7% AmeriTrade * 2,300,000 27,623 Bank of New York 1,120,000 32,670 Charles Schwab 950,000 8,731 Franklin Resources 1,120,000 62,451 Goldman Sachs 721,000 67,226 Legg Mason 970,000 51,672 Mellon Financial 2,350,000 65,071 Merrill Lynch 1,180,000 58,670 Morgan Stanley 820,000 40,426 Northern Trust 1,300,000 53,040 State Street 2,525,000 107,843 575,423 Commercial Banks 2.7% Bank of America 1,900,000 82,327 U.S. Bancorp 1,700,000 49,130 Wells Fargo 1,190,000 70,960 202,417 Consumer Finance 2.1% American Express 1,810,000 93,142 SLM Corporation 1,450,000 64,670 157,812 Diversified Financial Services 3.7% Citigroup 5,810,000 256,337 J.P. Morgan Chase 550,000 21,852 278,189 Insurance 4.0% American International Group 2,375,000 161,477 Genworth Financial, Class A * 400,000 9,320 Hartford Financial Services 1,000,000 61,930 Marsh & McLennan 945,000 43,243 St. Paul Companies 820,000 27,109 303,079 Thrifts & Mortgage Finance 1.4% Fannie Mae 875,000 55,475 Freddie Mac 740,000 48,277 103,752 Total Financials 1,620,672 HEALTH CARE 16.9% Biotechnology 3.0% Amgen * 1,900,000 107,692 Biogen Idec * 415,000 25,385 Genentech * 500,000 26,210 Gilead Sciences * 1,700,000 63,546 MedImmune * 100,000 2,370 225,203 Health Care Equipment & Supplies 2.8% Alcon 100,000 8,020 Biomet 445,000 20,861 Boston Scientific * 1,500,000 59,595 Guidant 250,000 16,510 Medtronic 1,420,000 73,698 St. Jude Medical * 200,000 15,054 Stryker 370,000 17,790 211,528 Health Care Providers & Services 5.0% Anthem * 300,000 26,175 UnitedHealth Group 3,350,000 247,029 WellPoint Health Networks * 953,000 100,151 373,355 Pharmaceuticals 6.1% Abbott Laboratories 700,000 29,652 Eli Lilly 340,000 20,417 Forest Laboratories * 1,340,000 60,273 Johnson & Johnson 1,555,000 87,593 Pfizer 6,000,000 183,600 Teva Pharmaceutical ADR 1,275,000 33,087 Wyeth 1,100,000 41,140 455,762 Total Health Care 1,265,848 INDUSTRIALS & BUSINESS SERVICES 12.2% Aerospace & Defense 1.9% General Dynamics 300,000 30,630 Honeywell International 1,150,000 41,239 Lockheed Martin 1,120,000 62,473 Rockwell Collins 170,000 6,314 140,656 Air Freight & Logistics 1.3% UPS, Class B 1,330,000 100,974 100,974 Commercial Services & Supplies 1.6% Apollo Group, Class A * 880,000 64,566 Cendant 1,500,000 32,400 ChoicePoint * 325,000 13,861 Waste Management 250,000 6,835 117,662 Industrial Conglomerates 4.9% 3M 160,000 12,795 GE 6,580,000 220,956 Tyco International 4,330,000 132,758 366,509 Machinery 2.5% Danaher 3,040,000 155,891 Deere 485,000 31,307 187,198 Total Industrials & Business Services 912,999 INFORMATION TECHNOLOGY 20.9% Communications Equipment 3.3% Cisco Systems * 6,530,000 118,193 Corning * 1,000,000 11,080 Juniper Networks * 1,760,000 41,536 LM Ericsson ADR, Class B * 250,000 7,810 QUALCOMM 1,120,000 43,725 Research In Motion * 310,000 23,665 246,009 Computers & Peripherals 2.7% Dell * 3,800,000 135,280 IBM 130,000 11,146 Lexmark International * 430,000 36,125 QLogic * 610,000 18,062 200,613 Internet Software & Services 1.8% Google, Class A * 115,300 14,943 IAC/InterActiveCorp * 1,400,000 30,828 Yahoo! * 2,750,000 93,253 139,024 IT Services 2.3% Accenture, Class A * 610,000 16,500 Affiliated Computer Services, Class A * 845,000 47,041 Automatic Data Processing 415,000 17,148 First Data 1,210,000 52,635 Fiserv * 1,000,000 34,860 SunGard Data Systems * 40,000 951 169,135 Semiconductor & Semiconductor Equipment 4.1% Analog Devices 1,600,000 62,048 Applied Materials * 700,000 11,543 Intel 2,950,000 59,177 Maxim Integrated Products 2,140,000 90,500 Microchip Technology 340,000 9,126 Texas Instruments 1,550,000 32,984 Xilinx 1,670,000 45,090 310,468 Software 6.7% Adobe Systems 1,360,000 67,279 Electronic Arts * 140,000 6,439 Intuit * 1,400,000 63,560 Microsoft 8,740,000 241,661 Oracle * 3,040,000 34,291 SAP ADR 1,300,000 50,635 Symantec * 500,000 27,440 VERITAS Software * 880,000 15,664 506,969 Total Information Technology 1,572,218 MATERIALS 1.2% Chemicals 0.0% Potash Corp./Saskatchewan 40,000 2,567 2,567 Metals & Mining 1.2% BHP Billiton (AUD) 2,500,000 26,000 Nucor 700,000 63,959 89,959 Total Materials 92,526 TELECOMMUNICATION SERVICES 1.5% Wireless Telecommunication Services 1.5% Nextel Communications, Class A * 3,400,000 81,056 Vodafone ADR 1,400,000 33,754 Total Telecommunication Services 114,810 Total Common Stocks (Cost $5,906,349) 7,466,514 SHORT-TERM INVESTMENTS 0.2% Money Market Fund 0.2% T. Rowe Price Reserve Investment Fund, 1.68% # 9,963,769 9,964 Total Short-Term Investments (Cost $9,964) 9,964 Total Investments in Securities 99.6% of Net Assets (Cost $5,916,313) $ 7,476,478 (1) Denominated in U.S. dollars unless otherwise noted # Seven-day yield * Non-income producing ADR American Depository Receipts AUD Australian dollar The accompanying notes are an integral part of this Portfolio of Investments. T. Rowe Price Blue Chip Growth Fund Unaudited September 30, 2004 Notes To Portfolio of Investments NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES T. Rowe Price Blue Chip Growth Fund, Inc. (the fund) is registered under the Investment Company Act of 1940 (the 1940 Act) as a diversified, open-end management investment company. The fund seeks to provide long-term capital growth. Income is a secondary objective. Valuation The fund values its investments and computes its net asset value per share at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day that the NYSE is open for business. Equity securities listed or regularly traded on a securities exchange or in the over-the-counter market are valued at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made, except for OTC Bulletin Board securities, which are valued at the mean of the latest bid and asked prices. A security that is listed or traded on more than one exchange is valued at the quotation on the exchange determined to be the primary market for such security. Listed securities not traded on a particular day are valued at the mean of the latest bid and asked prices for domestic securities and the last quoted sale price for international securities. Investments in mutual funds are valued at the mutual fund's closing net asset value per share on the day of valuation. Other investments and those for which the above valuation procedures are inappropriate or are deemed not to reflect fair value are stated at fair value as determined in good faith by the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. Most foreign markets close before the close of trading on the NYSE. If the fund determines that developments between the close of a foreign market and the close of the NYSE will, in its judgment, materially affect the value of some or all of its portfolio securities, which in turn will affect the fund's share price, the fund will adjust the previous closing prices to reflect the fair value of the securities as of the close of the NYSE, as determined in good faith by the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. A fund may also fair value securities in other situations, such as when a particular foreign market is closed but the fund is open. In deciding whether to make fair value adjustments, the fund reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U. S. markets that represent foreign securities and baskets of foreign securities. The fund uses outside pricing services to provide it with closing market prices and information used for adjusting those prices. The fund cannot predict how often it will use closing prices and how often it will adjust those prices. As a means of evaluating its fair value process, the fund routinely compares closing market prices, the next day's opening prices in the same markets, and adjusted prices. Investment Transactions Investment transactions are accounted for on the trade date. NOTE 2 - FEDERAL INCOME TAXES At September 30, 2004, the cost of investments for federal income tax purposes was $5,916,313,000. Net unrealized gain aggregated $1,560,162,000 at period-end, of which $1,676,309,000 related to appreciated investments and $116,147,000 related to depreciated investments. NOTE 3 - RELATED PARTY TRANSACTIONS The fund may invest in the T. Rowe Price Reserve Investment Fund and the T. Rowe Price Government Reserve Investment Fund (collectively, the Reserve Funds), open-end management investment companies managed by Price Associates. The Reserve Funds are offered as cash management options to mutual funds, trusts, and other accounts managed by Price Associates and/or its affiliates, and are not available for direct purchase by members of the public. Item 2. Controls and Procedures. (a) The registrant's principal executive officer and principal financial officer have evaluated the registrant's disclosure controls and procedures within 90 days of this filing and have concluded that the registrant's disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-Q was recorded, processed, summarized, and reported timely. (b) The registrant's principal executive officer and principal financial officer are aware of no change in the registrant's internal control over financial reporting that occurred during the registrant's most recent 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 certifications by the registrant's principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached. 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. T. Rowe Price Blue Chip Growth Fund, Inc. By /s/ James S. Riepe ----------------------------------- James S. Riepe Principal Executive Officer Date November 19, 2004 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/ James S. Riepe ----------------------------------- James S. Riepe Principal Executive Officer Date November 19, 2004 By /s/ Joseph A. Carrier ----------------------------------- Joseph A. Carrier Principal Financial Officer Date November 19, 2004