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) March 31, 2005 PORTFOLIO OF INVESTMENTS (1) Shares Value (Cost and value in $ 000s) COMMON STOCKS 99.1% CONSUMER DISCRETIONARY 14.3% Automobiles 0.5% Harley-Davidson 740,000 42,742 42,742 Hotels, Restaurants & Leisure 3.0% Carnival 2,050,000 106,211 Harrah's Entertainment 100,000 6,458 International Game Technology 2,000,000 53,320 Marriott, Class A 590,000 39,447 McDonald's 950,000 29,583 Starbucks * 250,000 12,915 247,934 Household Durables 0.3% Fortune Brands 310,000 24,995 24,995 Internet & Catalog Retail 0.6% Amazon.com * 460,000 15,764 eBay * 790,000 29,436 45,200 Media 5.5% Comcast, Class A * 2,440,000 81,496 Disney 590,000 16,951 Liberty Media, Class A * 2,750,000 28,518 News Corporation, Class A 4,150,000 70,218 Omnicom 300,000 26,556 Scripps, Class A 925,000 45,094 Time Warner * 5,320,000 93,366 Viacom, Class B 2,350,000 81,850 Washington Post, Class B 14,000 12,516 456,565 Multiline Retail 2.3% Kohl's * 1,240,000 64,021 Target 2,570,000 128,552 192,573 Specialty Retail 2.1% Best Buy 1,060,000 57,251 Home Depot 3,040,000 116,249 173,500 Total Consumer Discretionary 1,183,509 CONSUMER STAPLES 5.6% Beverages 1.0% Coca-Cola 325,000 13,542 PepsiCo 1,360,000 72,121 85,663 Food & Staples Retailing 2.8% CVS 520,000 27,363 Sysco 1,000,000 35,800 Wal-Mart 3,275,000 164,110 227,273 Household Products 0.4% Procter & Gamble 700,000 37,100 37,100 Personal Products 0.9% Estee Lauder, Class A 40,000 1,799 Gillette 1,360,000 68,653 70,452 Tobacco 0.5% Altria Group 610,000 39,888 39,888 Total Consumer Staples 460,376 ENERGY 5.6% Energy Equipment & Services 3.8% Baker Hughes 2,050,000 91,204 BJ Services 160,000 8,301 Schlumberger 1,600,000 112,768 Smith International 1,300,000 81,549 Transocean * 370,000 19,040 312,862 Oil & Gas 1.8% ChevronTexaco 1,060,000 61,809 ExxonMobil 1,060,000 63,176 Murphy Oil 295,000 29,125 154,110 Total Energy 466,972 FINANCIALS 20.7% Capital Markets 9.0% AmeriTrade * 3,650,000 37,266 Bank of New York 1,000,000 29,050 Charles Schwab 3,470,000 36,470 Franklin Resources 1,450,000 99,542 Goldman Sachs 730,000 80,293 Legg Mason 1,120,000 87,517 Mellon Financial 1,600,000 45,664 Merrill Lynch 1,500,000 84,900 Morgan Stanley 775,000 44,369 Northern Trust 1,462,155 63,516 State Street 3,160,000 138,155 746,742 Commercial Banks 2.6% Bank of America 2,050,000 90,405 U.S. Bancorp 1,900,000 54,758 Wells Fargo 1,220,000 72,956 218,119 Consumer Finance 2.1% American Express 1,975,000 101,456 SLM Corporation 1,400,000 69,776 171,232 Diversified Financial Services 3.4% Citigroup 6,220,000 279,527 279,527 Insurance 3.6% American International Group 2,950,000 163,459 Hartford Financial Services 1,150,000 78,844 Marsh & McLennan 1,555,000 47,303 St. Paul Companies 250,000 9,183 298,789 Total Financials 1,714,409 HEALTH CARE 15.2% Biotechnology 3.2% Amgen * 2,125,000 123,696 Biogen IDEC * 640,000 22,087 Genentech * 900,000 50,949 Gilead Sciences * 1,780,000 63,724 260,456 Health Care Equipment & Supplies 2.6% Biomet 1,030,000 37,389 Boston Scientific * 610,000 17,867 Medtronic 2,140,000 109,033 St. Jude Medical * 460,000 16,560 Stryker 770,000 34,349 215,198 Health Care Providers & Services 5.6% UnitedHealth Group, 3,070,000 292,817 WellPoint * 1,375,000 172,356 465,173 Pharmaceuticals 3.8% Abbott Laboratories 430,000 20,047 Eli Lilly 100,000 5,210 Forest Laboratories * 1,000 37 IVAX * 200,000 3,954 Johnson & Johnson 1,780,000 119,545 Pfizer 2,850,000 74,869 Teva Pharmaceutical ADR 1,300,000 40,300 Wyeth 1,210,000 51,038 315,000 Total Health Care 1,255,827 INDUSTRIALS & BUSINESS SERVICES 11.6% Aerospace & Defense 2.0% General Dynamics 335,000 35,862 Honeywell International 1,670,000 62,141 Lockheed Martin 790,000 48,237 Rockwell Collins 400,000 19,036 165,276 Air Freight & Logistics 0.3% UPS, Class B 300,000 21,822 21,822 Commercial Services & Supplies 1.3% Apollo Group, Class A * 910,000 67,394 Cendant 1,300,000 26,702 ChoicePoint * 300,000 12,033 106,129 Industrial Conglomerates 5.1% GE 7,430,000 267,926 Tyco International 4,510,000 152,438 420,364 Machinery 2.9% Danaher 3,200,000 170,912 Deere 1,000,000 67,130 238,042 Road & Rail 0.0% Union Pacific 40,000 2,788 2,788 Total Industrials & Business Services 954,421 INFORMATION TECHNOLOGY 22.6% Communications Equipment 3.7% Cisco Systems * 5,900,000 105,551 Corning * 2,620,000 29,161 Juniper Networks * 1,600,000 35,296 Nokia ADR * 3,470,000 53,542 QUALCOMM 1,540,000 56,441 Research In Motion * 310,000 23,690 303,681 Computers & Peripherals 2.6% Dell * 4,085,000 156,945 EMC * 3,000,000 36,960 IBM 226,000 20,652 214,557 Internet Software & Services 2.3% Google, Class A * 316,000 57,041 IAC/InterActiveCorp * 1,360,000 30,287 Yahoo! * 3,040,000 103,056 190,384 IT Services 2.6% Accenture, Class A * 1,300,000 31,395 Affiliated Computer Services, Class A * 790,000 42,060 Automatic Data Processing 1,300,000 58,435 First Data 1,150,000 45,206 Fiserv * 770,000 30,646 Paychex 190,000 6,236 213,978 Semiconductor & Semiconductor Equipment 5.8% Analog Devices 1,930,000 69,750 Intel 5,230,000 121,493 KLA-Tencor * 400,000 18,404 Linear Technology 430,000 16,473 Marvell Technology Group * 200,000 7,668 Maxim Integrated Products 2,410,000 98,497 Microchip Technology 550,000 14,306 Samsung Electronics (KRW) 37,000 18,290 Texas Instruments 2,000,000 50,980 Xilinx 2,350,000 68,691 484,552 Software 5.6% Adobe Systems 950,000 63,812 Intuit * 1,060,000 46,396 Microsoft 10,250,000 247,742 Oracle * 5,420,000 67,642 VERITAS Software * 1,550,000 35,991 461,583 Total Information Technology 1,868,735 MATERIALS 1.3% Metals & Mining 1.3% BHP Billiton (AUD) 4,000,000 55,236 Nucor 950,000 54,682 Total Materials 109,918 TELECOMMUNICATION SERVICES 2.2% Diversified Telecommunication Services 0.4% Telus (Non-voting shares) 1,000,000 30,810 30,810 Wireless Telecommunication Services 1.8% America Movil ADR, Series L 590,000 30,444 Nextel Communications, Class A * 3,400,000 96,628 Vodafone ADR 1,000,000 26,560 153,632 Total Telecommunication Services 184,442 Total Common Stocks (Cost $6,527,983) 8,198,609 SHORT-TERM INVESTMENTS 0.2% Money Market Fund 0.2% T. Rowe Price Reserve Investment Fund, 2.67% #+ 16,545,698 16,546 Total Short-Term Investments (Cost $16,546) 16,546 Total Investments in Securities 99.3% of Net Assets (Cost $6,544,529) $ 8,215,155 (1) Denominated in U.S. dollars unless otherwise noted # Seven-day yield * Non-income producing + Affiliated company - See Note 3 ADR American Depository Receipts AUD Australian dollar KRW South Korean won The accompanying notes are an integral part of this Portfolio of Investments. T. Rowe Price Blue Chip Growth Fund Unaudited March 31, 2005 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 March 31, 2005, the cost of investments for federal income tax purposes was $6,544,529,000. Net unrealized gain aggregated $1,670,626,000 at period-end, of which $1,838,389,000 related to appreciated investments and $167,763,000 related to depreciated investments. The amount and character of tax-basis distributions and composition of net assets are finalized at fiscal year-end; accordingly, tax-basis balances have not been determined as of March 31, 2005. 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 and affiliates of the fund. 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. The Reserve Funds pay no investment management fees. During the three months ended March 31, 2005, dividend income from the Reserve Funds totaled $232,000, and the value of shares of the Reserve Funds held at March 31, 2005 and December 31, 2004 was $16,546,000 and $69,489,000, respectively. 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 May 18, 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/ James S. Riepe ----------------------------------- James S. Riepe Principal Executive Officer Date May 18, 2005 By /s/ Joseph A. Carrier ----------------------------------- Joseph A. Carrier Principal Financial Officer Date May 18, 2005