UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-05150
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Cornerstone Strategic Value Fund, Inc.
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(Exact name of registrant as specified in charter)
383 Madison Avenue, New York, NY 10179
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(Address of principal executive offices) (Zip code)
Jodi Levine
Cornerstone Strategic Value Fund, Inc., 383 Madison Avenue, New York, NY 10179
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(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 272-3550
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Date of fiscal year end: December 31, 2006
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Date of reporting period: September 30, 2006
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ITEM 1: SCHEDULE OF INVESTMENTS
CORNERSTONE STRATEGIC VALUE FUND, INC.
SCHEDULE OF INVESTMENTS -- SEPTEMBER 30, 2006 (UNAUDITED)
NO. OF
DESCRIPTION SHARES VALUE
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EQUITY SECURITIES - 99.36%
CLOSED-END DOMESTIC FUNDS - 0.97%
Adams Express Company 49,500 $ 669,240
General American Investors Company 3,000 112,980
Liberty All-Star Growth Fund, Inc. 19,800 100,386
Zweig Fund, Inc. ^ 75,000 409,500
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1,292,106
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CONSUMER DISCRETIONARY - 10.39%
Acco Brands Corporation * 235 5,231
Bed Bath & Beyond Inc. ^ * 4,200 160,692
Best Buy Co., Inc. 3,625 194,155
Black & Decker Corporation (The) 3,000 238,050
Carnival Corporation ^ 11,800 554,954
CBS Corporation ^ 4,450 125,356
Circuit City Stores, Inc. ^ 2,500 62,775
Clear Channel Communications, Inc. * 8,800 253,880
Comcast Corporation, Special Class A ^ * 19,037 701,513
D.R. Horton, Inc. ^ 7,000 167,650
Eastman Kodak Company 1,400 31,360
eBay Inc. * 21,500 609,740
Federated Department Stores, Inc. 11,052 477,557
Ford Motor Company 3,000 24,270
Fortune Brands, Inc. 3,500 262,885
Gannett Co., Inc. 6,000 340,980
Gap, Inc. (The) 12,200 231,190
Goodyear Tire & Rubber Company (The) ^ * 4,500 65,250
Hanesbrands, Inc. * 1,437 32,347
Harley-Davidson, Inc. ^ 4,400 276,100
Hilton Hotels Corporation ^ 11,200 311,920
Home Depot, Inc. (The) 28,100 1,019,187
J.C. Penney Company, Inc. 4,500 307,755
Kohl's Corporation ^ * 2,500 162,300
Live Nation Inc. ^ * 1,100 22,462
Lowe's Companies, Inc. ^ 22,400 628,544
Marriott International, Inc., Class A ^ 4,200 162,288
Mattel, Inc. 5,500 108,350
McDonald's Corporation 17,600 688,512
News Corporation ^ 23,000 451,950
NIKE, Inc. ^ 2,300 201,526
Omnicom Group Inc. 4,100 383,760
Sears Holdings Corporation * 503 79,519
Staples, Inc. ^ 10,800 262,764
Starbucks Corporation * 10,800 367,740
Target Corporation 11,800 651,950
Time Warner Inc. 76,000 1,385,480
NO. OF
DESCRIPTION SHARES VALUE
-------------------------------------------------------------------------------
TJX Companies, Inc. (The) ^ 3,000 $ 84,090
Univision Communications Inc., Class A * 7,000 240,380
Viacom Inc. * 11,950 444,301
Walt Disney Company (The) 20,200 624,382
Wyndham Worldwide Corp * 5,600 156,632
Yum! Brands, Inc. 6,000 312,300
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13,874,027
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CONSUMER STAPLES - 10.10%
Altria Group, Inc. 22,300 1,707,065
Anheuser-Busch Companies, Inc. 6,200 294,562
Archer-Daniels-Midland Company 9,460 358,345
Campbell Soup Company 2,000 73,000
Coca-Cola Company (The) 23,500 1,049,980
Coca-Cola Enterprises Inc. 3,000 62,490
Colgate-Palmolive Company 11,100 689,310
ConAgra Foods, Inc. 4,400 107,712
Costco Wholesale Corporation 6,500 322,920
CVS Corporation 9,000 289,080
General Mills, Inc. 12,000 679,200
H.J. Heinz Company 6,600 276,738
Kroger Co. (The) 8,800 203,632
Pepsi Bottling Group, Inc. (The) ^ 4,000 142,000
PepsiCo, Inc. 24,800 1,618,448
Procter & Gamble Company (The) 41,297 2,559,588
Sara Lee Corporation 16,000 257,120
Sysco Corporation ^ 5,800 194,010
Walgreen Co. 14,300 634,777
Wal-Mart Stores, Inc. 39,800 1,962,936
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13,482,913
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ENERGY - 9.09%
Anadarko Petroleum Corp. ^ 8,300 363,789
Baker Hughes Incorporated 8,100 552,420
Chevron Corporation 24,532 1,591,146
ConocoPhillips 17,974 1,069,992
Devon Energy Corporation 5,000 315,750
Exxon Mobil Corporation 76,500 5,133,150
Hugoton Royalty Trust ^ 298 7,852
Marathon Oil Corp. 7,500 576,750
Occidental Petroleum Corporation 16,000 769,760
Schlumberger Limited 22,000 1,364,660
Transocean Inc. * 2,500 183,075
XTO Energy, Inc. ^ 5,000 210,650
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12,138,994
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FINANCIALS - 21.45%
AFLAC Incorporated 7,000 320,320
Allstate Corporation (The) 9,300 583,389
American Express Company 19,600 1,099,168
American International Group, Inc. 37,531 2,486,804
Ameriprise Financial, Inc. 3,120 146,328
NO. OF
DESCRIPTION SHARES VALUE
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Aon Corporation 4,900 $ 165,963
Bank of America Corporation 67,938 3,639,439
Bank of New York Company, Inc. (The) 11,400 401,964
Charles Schwab Corporation (The) 8,500 152,150
Citigroup Inc. ^ 49,300 2,448,731
Fannie Mae 13,000 726,830
Fifth Third Bancorp ^ 2,500 95,200
Franklin Resources, Inc. 3,700 391,275
Freddie Mac 14,500 961,785
Goldman Sachs Group, Inc. (The) ^ 7,300 1,234,941
Hartford Financial Services Group, Inc. (The) 6,000 520,500
JPMorgan Chase & Co. 40,132 1,884,599
Lehman Brothers Holdings Inc. 7,200 531,792
Marsh & McLennan Companies, Inc. ^ 10,100 284,315
Merrill Lynch & Co., Inc. ^ 7,200 563,184
Metlife, Inc. 15,200 861,536
Morgan Stanley ^ 15,500 1,130,105
National City Corporation 12,700 464,820
Northern Trust Corporation ^ 3,500 204,505
PNC Financial Services Group, Inc. 7,100 514,324
Prudential Financial, Inc. 8,200 625,250
Realogy Corporation * 7,000 158,760
St. Paul Travelers Companies, Inc. (The) 9,476 444,330
State Street Corporation 3,500 218,400
SunTrust Banks, Inc. 7,600 587,328
U.S. Bancorp 28,401 943,481
UnumProvident Corporation 8,100 157,059
Wachovia Corporation 22,600 1,261,080
Washington Mutual, Inc. 15,550 675,958
Wells Fargo & Company 48,400 1,751,112
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28,636,725
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HEALTHCARE - 12.69%
Abbott Laboratories 28,000 1,359,680
Aetna Inc. ^ 6,000 237,300
Amgen Inc. * 18,900 1,351,917
Applera Corporation 8,000 264,880
Baxter International Inc. 5,000 227,300
Becton, Dickinson and Company 6,900 487,623
Biogen Idec Inc. * 5,500 245,740
Boston Scientific Corporation * 15,551 229,999
Bristol-Myers Squibb Company ^ 30,500 760,060
Cardinal Health, Inc. 5,450 358,283
Caremark Rx, Inc. 9,000 510,030
Eli Lilly and Company 11,000 627,000
Gilead Sciences, Inc. * 3,500 240,450
HCA, Inc. 8,500 424,065
Hospira, Inc. * 3,700 141,599
IMS Health Incorporated 7,400 197,136
Johnson & Johnson 40,900 2,656,046
NO. OF
DESCRIPTION SHARES VALUE
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McKesson Corporation 2,300 $ 121,256
Medco Health Solutions, Inc. * 6,687 401,956
Medtronic, Inc. 19,000 882,360
Merck & Co. Inc. 20,000 838,000
Pfizer Inc. 68,560 1,944,362
Schering-Plough Corporation 12,500 276,125
Tenet Healthcare Corporation * 2,250 18,315
UnitedHealth Group Incorporated 17,000 836,400
WellPoint Inc. * 6,000 462,300
Wyeth 16,700 849,028
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16,949,210
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INDUSTRIALS - 10.48%
3M Co. 12,400 922,808
Avis Budget Group 2,800 51,212
Boeing Company (The) 9,200 725,420
Caterpillar Inc. ^ 11,800 776,440
CSX Corporation 18,000 590,940
Danaher Corporation ^ 3,500 240,345
Emerson Electric Co. 6,000 503,160
FedEx Corp. 4,500 489,060
General Dynamics Corporation 6,200 444,354
General Electric Company 112,500 3,971,250
Honeywell International Inc. 12,500 511,250
Illinois Tool Works Inc. 10,800 484,920
Ingersoll-Rand Company Ltd. Class A 7,000 265,860
Lockheed Martin Corporation 4,000 344,240
Masco Corporation ^ 4,200 115,164
Norfolk Southern Corporation 10,000 440,500
Northrop Grumman Corporation 5,000 340,350
Rockwell Automation, Inc. 2,500 145,250
Southwest Airlines Co. 6,450 107,457
Textron Inc. 4,500 393,750
Tyco International Ltd. 15,397 430,962
Union Pacific Corporation 2,000 176,000
United Parcel Service, Inc., Class B 5,300 381,282
United Technologies Corporation 11,000 696,850
Waste Management, Inc. 12,200 447,496
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13,996,320
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INFORMATION TECHNOLOGY - 14.88%
Adobe Systems Incorporated * 9,200 344,540
Analog Devices, Inc. 9,200 270,388
Apple Computer, Inc. * 3,000 231,090
Applied Materials, Inc. 33,800 599,274
Automatic Data Processing, Inc. 9,900 468,666
Cisco Systems, Inc. * 96,400 2,217,200
Corning Incorporated * 11,000 268,510
Dell Inc. * 18,700 427,108
Electronic Arts Inc. ^ * 5,000 278,400
Electronic Data Systems Corporation 5,000 122,600
NO. OF
DESCRIPTION SHARES VALUE
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EMC Corporation * 212,648 $ 2,547,523
First Data Corporation 11,324 475,608
Freescale Semiconductor Inc., Class B * 6,512 247,521
Hewlett-Packard Company ^ 19,900 730,131
Intel Corporation 82,500 1,697,025
International Business Machines Corporation 12,600 1,032,444
Linear Technology Corporation 6,500 202,280
Lucent Technologies Inc. * 10,700 25,038
Maxim Integrated Products, Inc. 2,300 64,561
Micron Technology, Inc. * 11,500 200,100
Microsoft Corporation 120,900 3,304,197
Motorola, Inc. 34,700 867,500
Oracle Corporation * 43,872 778,289
Paychex, Inc. 4,200 154,770
QUALCOMM Inc. 21,000 763,350
Sanmina-SCI Corporation * 5,500 20,570
Solectron Corporation * 3,000 9,780
Sun Microsystems, Inc. * 7,500 37,275
Symantec Corporation * 10,000 212,800
Texas Instruments Incorporated 23,900 794,675
Yahoo! Inc. * 18,800 475,264
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19,868,477
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MATERIALS - 2.34%
Air Products & Chemicals, Inc. 1,000 66,370
Alcoa Inc. ^ 14,200 398,168
Dow Chemical Company (The) 15,400 600,292
E. I. du Pont de Nemours and Company ^ 14,800 634,032
International Paper Company ^ 10,500 363,615
Monsanto Company 10,160 477,622
Newmont Mining Corporation 7,000 299,250
Praxair, Inc. 3,000 177,480
Rohm and Hass Company 1,000 47,350
Weyerhaeuser Company ^ 1,000 61,530
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3,125,709
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REAL ESTATE INVESTMENT TRUST - 0.44%
Simon Property Group, Inc. 6,500 589,030
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TELECOMMUNICATIONS SERVICES - 3.27%
ALLTEL Corporation 4,000 222,000
AT&T Inc. 42,364 1,379,372
BellSouth Corporation 19,000 812,250
Embarq Corporation 1,922 92,967
Sprint Nextel Corporation ^ 38,446 659,349
Verizon Communications Inc. 30,900 1,147,317
Windstream Corporation 4,135 54,541
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4,367,796
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UTILITIES - 3.26%
American Electric Power Company, Inc. 5,500 200,035
CenterPoint Energy, Inc. 13,900 199,048
NO. OF
DESCRIPTION SHARES VALUE
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Dominion Resources, Inc. 4,600 $ 351,854
Duke Energy Corporation 13,300 401,660
Edison International ^ 4,000 166,560
Exelon Corporation 8,500 514,590
FirstEnergy Corp. 5,000 279,300
FPL Group, Inc. ^ 4,000 180,000
PG&E Corporation 9,000 374,850
Progress Energy, Inc. 3,500 158,830
Public Service Enterprise Group Incorporated 6,000 367,140
Southern Company (The) ^ 11,900 410,074
TXU Corp. ^ 9,400 587,688
Williams Companies, Inc. (The) ^ 7,000 167,090
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4,358,719
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TOTAL EQUITY SECURITIES
(cost - $111,744,455) 132,680,026
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PRINCIPAL
AMOUNT
000'S
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SHORT-TERM INVESTMENTS - 3.53%
REPURCHASE AGREEMENTS - 3.53%
Bear, Stearns and Co., Inc. + ++ $ 2,785 2,784,570
(Agreement dated 9/30/2006 to be repurchased at
$2,785,193), 2.6875%, 10/2/2006, collateralized
by $2,865,553 in U.S. Treasury Bond Strips)
Bear, Stearns and Co., Inc. 1,059 1,059,458
(Agreement dated 9/30/2006 to be repurchased at
$1,059,899), 5.0000%, 10/2/2006, collateralized
by $1,092,600 in U.S. Treasury Bond Strips)
Bear, Stearns and Co., Inc. + ++ 872 871,582
(Agreement dated 9/30/2006 to be repurchased at
$871,972), 5.3750%, 10/2/2006, collateralized by
$899,449 in U.S. Treasury Bond Strips)
TOTAL SHORT-TERM INVESTMENTS
(cost - $4,715,610) 4,715,610
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TOTAL INVESTMENTS - 102.89%
(cost - $116,460,065) 137,395,636
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LIABILITIES IN EXCESS OF OTHER ASSETS - (2.89)% (3,857,743)
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NET ASSETS - 100.00% $133,537,893
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* Non-income producing security.
+ Stated interest rate, before rebate earned by borrower of securities on
loan.
++ Represents investment purchased with collateral received for securities on
loan.
^ Security or a portion thereof is out on loan.
Federal Income Tax Cost: At September 30, 2006, the identified cost for federal
income tax purposes, as well as the gross unrealized appreciation from
investments for those securities having an excess of value over cost, gross
unrealized depreciation from investments for those securities having an excess
of cost over value and the net unrealized appreciation from investments were
$116,460,065, $24,606,113, ($3,670,542), $20,935,571, respectively.
Securities valuation policies and other investment related disclosures are
hereby incorporated by reference to the Fund's annual report previously filed
with the Securities and Exchange Commission on the Form N-CSR on August 31, 2006
with a file number 811-05150.
Other information regarding the Fund is available in the Fund's most recent
annual report filed with the Securities and Exchange Commission on Form N-CSR on
August 31, 2006, file number 811-05150. This information is also available to
registered shareholders by calling (800) 937-5449. For general inquiries, please
call (212) 272-3550. This information is also available on the website of the
Securities and Exchange Commission - http://www.sec.gov.
ITEM 2: CONTROLS AND PROCEDURES
(a) As of a date within 90 days from the filing date of this report, the
principal executive officer and principal financial officer concluded that the
registrant's disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940 (the "Act")), were effective based on
their evaluation of the disclosure controls and procedures required by Rule
30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities and
Exchange Act of 1934.
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred
during the registrant's last fiscal quarter that have materially affected, or
are reasonably likely to materially affect, the registrant's internal control
over financial reporting.
ITEM 3: EXHIBITS
1. The certifications of the registrant as required by Rule 30a-2(a) under
the Act are exhibits to this report.
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.
Cornerstone Strategic Value Fund, Inc.
/s/ Ralph W. Bradshaw
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Name: Ralph W. Bradshaw
Title: Principal Executive Officer
Date: November 22, 2006
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.
/s/ Ralph W. Bradshaw
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Name: Ralph W. Bradshaw
Title: Principal Executive Officer
Date: November 22, 2006
/s/ Jodi B. Levine
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Name: Jodi B. Levine
Title: Principal Financial Officer
Date: November 22, 2006