The Deen's ListTM
A service of Deen Capital Management, Inc. (www.deencapital.com)
Our goal: Outperform the S&P 500 in both up markets and down.
Our result: +62.4% for the 60 months ending December 31, 2010 (vs. +11.6% for the S&P)
For complete performance data, click here
Vol.9 #1 Saturday, January 1, 2011 6:23PM EST

Please read carefully our disclaimers at the end of this newsletter.

Weekly Status Report: Contents

Typical Client Performance
Market Commentary
Typical Client Portfolio
Stocks Sold Over Past 13 Weeks
Subscription Information
Privacy Policy
Disclaimers
Contact Us

Typical Client Performance

Deen Capital S&P 500
Year-to-date as of December 31, 2010 +12.9% * +14.9%
12 months (Dec 31, 2009 to Dec 31, 2010) +12.9% * +14.9%
24 months (Dec 31, 2008 to Dec 31, 2010) +41.1% * +45.3%
36 months (Dec 31, 2007 to Dec 31, 2010) +4.7% * -8.5%
48 months (Dec 31, 2006 to Dec 31, 2010) +33.3% * -3.5%
60 months (Dec 31, 2005 to Dec 31, 2010) +62.4% * +11.6%

* An average of managed accounts, net after all commissions and fees.

Click here for more performance data.

Click here for information on managed accounts.

Market Commentary

Market Stance: BULLISH (since December 1, 2010)

2010 is now history, and our unofficial result for the year is Deen Capital +12.9%(*), slightly behind the S&P's +14.9% gain.

For the five-year period 2006 through 2010, it's Deen Capital +62.4%(*), S&P +11.6%. This far outpaces the vast majority of alternative investments.

(*) Average after-expenses return of managed accounts. These are preliminary results.

I call these results "preliminary" because the official results will be different. This deserves an explanation.

We bought AMRC Wednesday, Dec 28. Now, as of Dec 31, we have a paper gain on this stock. But brokerage monthly statements ignore trades during the final 3 days of the month, so the account value on our December brokerage statement will not include this gain. Hence, I expect our official 2010 performance will be a hair less than I am stating here. I view this as a flaw in the brokerage monthly statements, but that's just my personal opinion.

So what about 2011? From where I sit, I think the odds favor further gains in January and early February. (Six weeks is about as far out as I ever care to predict.) My primary technical indicators weakened a bit during the final week of the month (they are now overall neutral); but I do not see this as significant, because trading volume was so light due to the holidays.

As always, of course, I am prepared to turn bearish (and move to cash) on a dime, if and when I detect early warning signs of an important market top.

My Three Primary Technical Indicators:

                                       Prior week             Now
                                       ----------           -------
NASDAQ Timing Model (Ver.10r):           BULLISH            BULLISH (1)
Last signal:  BULLISH on Dec 1, 2010

Performance of Recent Stock Picks:  +3.3 NEUTRAL       +2.4 BEARISH (2)

Market Internals:                    67% NEUTRAL        69% NEUTRAL (3)

-----------------------------------------------------------------------
Market's Overall Technical Rating:       BULLISH            NEUTRAL

Stocks:Cash ratio (average):              94:6               100:0

(1) A proprietary computer model based on technical analysis of the NASDAQ Composite.

(2) This number (from -10 to +10) is based on the performance of ALL my recent stock picks (I actually buy only some of these). A positive number means my recent stock picks are generally rising; a negative number means they are generally falling. Even so, I consider a reading below +3.1 to be bearish. I require a reading of +5.6 or better to call this indicator bullish.

(3) This is the percentage of stocks ($8 and up) which are trading above their 50-day moving average. The rating of this percentage (bullish, bearish or neutral) is based on which way it's been moving recently -- up, down or sideways.

-KD, Saturday, January 1, 2011

Typical Client Portfolio

Company Name Stock
Symbol
Buy
Date
NetBuy
Price*
Current
Price
Weeks
Held
% of
Portfolio
Gain
(Loss)
Ameresco, Inc. AMRC 12/29/10 $13.66 $14.36 0.3 6.1% +5.2%
Jabil Circuit Inc. JBL 12/21/10 $19.49 $20.09 1.4 4.7% +3.1%
Take-Two Interactive TTWO 12/17/10 $13.35 $12.27 2.0 4.9% -8.1%
Dice Holdings, Inc. DHX 12/13/10 $13.35 $14.35 2.6 5.2% +7.5%
Lululemon Athletica Inc. LULU 12/09/10 $64.86 $68.42 3.1 6.3% +5.5%
ASML Holding NV ASML 12/09/10 $37.53 $38.34 3.1 6.0% +2.2%
Korn/Ferry International KFY 12/08/10 $19.61 $23.11 3.3 5.4% +17.8%
TTM Technologies, Inc. TTMI 12/06/10 $14.14 $14.92 3.6 6.2% +5.5%
S&P Depositary Receipt SPY 12/01/10 $120.47 $125.75 4.3 43.0% +4.4%
Buckeye Tech Inc. BKI 11/24/10 $20.14 $21.01 5.3 6.0% +4.3%
DDi Corp. DDIC 11/22/10 $10.84 $11.76 5.6 6.2% +8.5%
Cash 0.1%  
Total 100%  

* Buy prices shown are net after commissions.

Stocks Sold Over Past 13 Weeks

Company Name Stock
Symbol
Buy
Date
NetBuy
Price*
Sell
Date
NetSell
Price*
Weeks
Held
Gain
(Loss)*
Guess?, Inc. GES 11/29/10 $48.57 12/22/10 $47.19 3.3 -2.8%
Lihua International, Inc. LIWA 12/14/10 $12.42 12/20/10 $11.19 0.9 -9.9%
OmniVision Tech Inc. OVTI 12/01/10 $31.15 12/15/10 $28.92 2.0 -7.2%
S&P Depositary Receipt SPY 12/01/10 $120.47 12/14/10 $124.74 1.9 +3.5%
S&P Depositary Receipt SPY 12/01/10 $120.47 12/09/10 $123.34 1.1 +2.4%
KEMET Corp. KEM 12/01/10 $14.13 12/08/10 $13.60 1.0 -3.8%
New Energy Systems Group NEWN 11/16/10 $7.67 12/07/10 $7.32 3.0 -4.6%
S&P Depositary Receipt SPY 12/01/10 $120.47 12/06/10 $122.87 0.7 +2.0%
Coach Inc. COH 10/26/10 $50.11 12/01/10 $56.36 5.1 +12.5%
PowerShares QQQ Trust QQQQ 11/18/10 $52.60 11/30/10 $52.04 1.7 -1.1%
Cognex Corp. CGNX 11/02/10 $29.52 11/30/10 $28.13 4.0 -4.7%
Amtech Systems Inc. ASYS 11/15/10 $18.81 11/30/10 $20.75 2.1 +10.3%
Coinstar Inc. CSTR 11/01/10 $58.09 11/29/10 $64.09 4.0 +10.3%
WESCO International Inc. WCC 10/26/10 $44.34 11/19/10 $47.19 3.4 +6.4%
Sohu.com Inc. SOHU 10/29/10 $73.49 11/19/10 $74.26 3.0 +1.0%
Smith Micro Software SMSI 11/10/10 $14.57 11/17/10 $13.33 1.0 -8.5%
Silicon Image Inc. SIMG 10/27/10 $5.98 11/17/10 $6.19 3.0 +3.6%
QuinStreet, Inc. QNST 11/04/10 $16.41 11/17/10 $18.51 1.9 +12.8%
Newport Corp. NEWP 11/01/10 $14.40 11/17/10 $13.91 2.3 -3.4%
Maxim Integrated Products MXIM 10/29/10 $21.67 11/17/10 $22.16 2.7 +2.3%
II-VI, Inc. IIVI 10/26/10 $40.21 11/17/10 $39.66 3.1 -1.4%
Broadcom Corp. BRCM 10/28/10 $41.52 11/17/10 $40.36 2.9 -2.8%
TTM Technologies, Inc. TTMI 11/05/10 $13.90 11/16/10 $12.50 1.6 -10.1%
Neurocrine Biosciences, Inc. NBIX 11/10/10 $7.55 11/16/10 $6.80 0.9 -9.9%
New Energy Systems Group NEWN 11/08/10 $8.74 11/12/10 $7.12 0.6 -18.6%
Altra Holdings, Inc. AIMC 11/03/10 $16.00 11/10/10 $15.47 1.0 -3.3%
Vicor Corp. VICR 10/22/10 $18.61 11/09/10 $17.30 2.6 -7.0%
OpenTable, Inc. OPEN 11/04/10 $68.80 11/09/10 $65.50 0.7 -4.8%
JinkoSolar Holding Co., Ltd. JKS 11/01/10 $35.38 11/08/10 $35.90 1.0 +1.5%
LDK Solar Co. Ltd. LDK 10/25/10 $11.40 11/05/10 $13.01 1.6 +14.1%
DDi Corp. DDIC 11/02/10 $10.24 11/05/10 $10.29 0.4 +0.5%
Zagg, Inc. ZAGG 10/18/10 $7.59 11/04/10 $8.12 2.4 +7.0%
Deckers Outdoor Corp. DECK 10/29/10 $58.29 11/04/10 $58.87 0.9 +1.0%
Interactive Intelligence ININ 10/15/10 $23.05 11/02/10 $26.90 2.6 +16.7%
Google, Inc. GOOG 10/15/10 $600.41 11/02/10 $616.33 2.6 +2.6%
PowerShares QQQ Trust QQQQ 10/20/10 $51.29 11/01/10 $52.37 1.7 +2.1%
PowerShares QQQ Trust QQQQ 10/20/10 $51.29 10/29/10 $52.32 1.3 +2.0%
PowerShares QQQ Trust QQQQ 10/20/10 $51.29 10/27/10 $51.79 1.0 +1.0%
PowerShares QQQ Trust QQQQ 10/20/10 $51.29 10/26/10 $51.81 0.9 +1.0%
TriQuint Semiconductor TQNT 10/13/10 $9.27 10/19/10 $9.22 0.9 -0.5%
S&P Depositary Receipt SPY 10/07/10 $116.21 10/19/10 $116.57 1.7 +0.3%
Phillips Van Heusen PVH 09/08/10 $55.04 10/19/10 $60.04 5.9 +9.1%
Oracle Corp. ORCL 09/17/10 $27.01 10/19/10 $28.87 4.6 +6.9%
Oclaro, Inc. OCLR 09/29/10 $16.07 10/19/10 $14.06 2.9 -12.5%
Longtop Financial Tech LFT 10/13/10 $39.91 10/19/10 $38.36 0.9 -3.9%
LDK Solar Co. Ltd. LDK 10/12/10 $11.10 10/19/10 $11.04 1.0 -0.5%
Globe Specialty Metals GSM 09/20/10 $13.76 10/19/10 $14.76 4.1 +7.3%
Fabrinet FN 10/01/10 $15.86 10/19/10 $17.45 2.6 +10.0%
Amtech Systems Inc. ASYS 09/21/10 $15.90 10/19/10 $17.88 4.0 +12.4%
S&P Depositary Receipt SPY 10/07/10 $116.21 10/15/10 $117.53 1.1 +1.1%
Cyberonics Inc. CYBX 10/06/10 $26.91 10/15/10 $26.47 1.3 -1.7%
S&P Depositary Receipt SPY 10/07/10 $116.21 10/13/10 $118.18 0.9 +1.7%
Cognex Corp. CGNX 09/13/10 $22.20 10/11/10 $27.40 4.0 +23.4%
Oplink Communication OPLK 09/30/10 $19.91 10/07/10 $19.61 1.0 -1.5%
Ulta Salon, Cosmetics ULTA 09/03/10 $25.87 10/06/10 $28.20 4.7 +9.0%
OPNET Technologies Inc. OPNT 09/16/10 $18.22 10/06/10 $17.03 2.9 -6.6%
Nanometrics Inc. NANO 09/29/10 $15.50 10/06/10 $14.34 1.0 -7.5%
Lululemon Athletica Inc. LULU 09/28/10 $45.41 10/06/10 $43.43 1.1 -4.4%
G-III Apparel Group, Ltd GIII 09/28/10 $31.22 10/06/10 $29.73 1.1 -4.8%
Altisource Portfolio Slns SA ASPS 09/23/10 $29.33 10/05/10 $28.11 1.7 -4.2%

* Buy and sell prices shown are net after commissions. This means that the gains/losses shown are also net after transaction expenses.

Subscription Information

Welcome to The Deen's ListTM, an e-mail stock newsletter from Deen Capital Management, Inc.

My intention is to inform you as quickly as is practical regarding my stock market moves.

Your feedback is welcome. Send e-mail to deenslist@deencapital.com. To subscribe or unsubscribe, include the word "subscribe" or "unsubscribe" in the Subject line.

This newsletter is free to managed account clients. For a limited time, it is also free to all interested parties.

Privacy Policy

Your personal information, including your e-mail address, will be held in strict confidence by Deen Capital Management, Inc. We will not share it with or sell it to others.

Disclaimers

All stocks discussed in The Deen's ListTM involve a high degree of risk. It should not be assumed that any stock discussed in The Deen's ListTM or purchased by Deen Capital Management, Inc. will be profitable.

Past performance is not necessarily indicative of future results.

The information contained herein has been compiled from sources deemed to be reliable; however, we are not responsible for its accuracy or completeness.

Contact Us

The Deen's List
PO Box 30925
Santa Barbara, CA 93130
(800) 353-4990
deenslist@deencapital.com

Copyright © 2010 Deen Capital Management, Inc.