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: +60.1% for the 60 months ending January 7, 2011 (vs. +9.5% for the S&P)
For complete performance data, click here
Vol.9 #5 Saturday, January 8, 2011 4:43PM 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 January 7, 2011 +0.7% * +1.2%
12 months (Jan 7, 2010 to Jan 7, 2011) +10.4% * +13.5%
24 months (Jan 7, 2009 to Jan 7, 2011) +43.2% * +46.3%
36 months (Jan 7, 2008 to Jan 7, 2011) +6.8% * -4.0%
48 months (Jan 7, 2007 to Jan 7, 2011) +34.6% * -1.8%
60 months (Jan 7, 2006 to Jan 7, 2011) +60.1% * +9.5%

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

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Click here for information on managed accounts.

Market Commentary

Market Stance: BULLISH (since December 1, 2010)

We are off to a decent start in 2011, though I am worried about the market's tone, which has deteriorated a bit just in the past few days.

Deen Capital accounts gained +0.7% on average this first week of 2011, versus +1.2% for the S&P. I should mention that this was also the week when Deen Capital management fees were deducted. This happens four times a year, and in the present case fully accounts for this 1-week half-point lag.

This is, as I said, a decent start, but my indicators, at Friday's close, just tipped over into overall bearish territory. And the overall performance of my recent stock picks has been poor lately.

Based on my indicators, I should be turning bearish now, but ...

Next week, the markets get a flood of earnings news to digest. I am holding my breath, as I want to see how the market reacts to these reports -- at least the early ones. It is entirely possible that this weakening tone is simply due to uncertainty about this upcoming earnings season.

This uncertainty will be resolved shortly, and I am very optimistic about fourth quarter corporate earnings generally. I think a healthy dose of upside surprises is likely.

Let's wait and see...

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:  +2.4 BEARISH       +2.3 BEARISH (2)

Market Internals:                    69% NEUTRAL        66% BEARISH (3)

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

Stocks:Cash ratio (average):              100:0              95:5

(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 8, 2011

Typical Client Portfolio

Company Name Stock
Symbol
Buy
Date
NetBuy
Price*
Current
Price
Weeks
Held
% of
Portfolio
Gain
(Loss)
Alliance Fiber Optic AFOP 01/07/11 $17.40 $17.31 0.0 6.1% -0.5%
Ameresco, Inc. AMRC 12/29/10 $13.65 $15.81 1.3 6.7% +15.8%
Jabil Circuit Inc. JBL 12/21/10 $19.48 $21.07 2.4 4.9% +8.1%
Dice Holdings, Inc. DHX 12/13/10 $13.34 $14.07 3.6 5.0% +5.4%
ASML Holding NV ASML 12/09/10 $37.52 $36.31 4.1 5.7% -3.2%
Korn/Ferry International KFY 12/08/10 $19.60 $22.29 4.3 5.2% +13.7%
TTM Technologies, Inc. TTMI 12/06/10 $14.13 $14.03 4.6 5.8% -0.7%
S&P Depositary Receipt SPY 12/01/10 $120.47 $127.14 5.3 43.2% +5.5%
Buckeye Tech Inc. BKI 11/24/10 $20.13 $22.75 6.3 6.4% +13.0%
DDi Corp. DDIC 11/22/10 $10.84 $11.83 6.6 6.2% +9.2%
Cash 5.0%  
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)*
Take-Two Interactive TTWO 12/17/10 $13.35 01/06/11 $12.22 2.9 -8.4%
Lululemon Athletica Inc. LULU 12/09/10 $64.84 01/04/11 $66.94 3.7 +3.2%
Guess?, Inc. GES 11/29/10 $48.56 12/22/10 $47.20 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 $31.14 12/15/10 $28.92 2.0 -7.1%
S&P Depositary Receipt SPY 12/01/10 $120.47 12/14/10 $124.78 1.9 +3.6%
S&P Depositary Receipt SPY 12/01/10 $120.47 12/09/10 $123.35 1.1 +2.4%
KEMET Corp. KEM 12/01/10 $14.13 12/08/10 $13.60 1.0 -3.7%
New Energy Systems Group NEWN 11/16/10 $7.67 12/07/10 $7.32 3.0 -4.5%
S&P Depositary Receipt SPY 12/01/10 $120.47 12/06/10 $122.90 0.7 +2.0%
Coach Inc. COH 10/26/10 $50.09 12/01/10 $56.38 5.1 +12.6%
PowerShares QQQ Trust QQQQ 11/18/10 $52.60 11/30/10 $52.05 1.7 -1.1%
Cognex Corp. CGNX 11/02/10 $29.52 11/30/10 $28.14 4.0 -4.7%
Amtech Systems Inc. ASYS 11/15/10 $18.80 11/30/10 $20.75 2.1 +10.4%
Coinstar Inc. CSTR 11/01/10 $58.07 11/29/10 $64.11 4.0 +10.4%
WESCO International Inc. WCC 10/26/10 $44.33 11/19/10 $47.21 3.4 +6.5%
Sohu.com Inc. SOHU 10/29/10 $73.48 11/19/10 $74.28 3.0 +1.1%
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 $6.20 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 $21.66 11/17/10 $22.17 2.7 +2.3%
II-VI, Inc. IIVI 10/26/10 $40.20 11/17/10 $39.67 3.1 -1.3%
Broadcom Corp. BRCM 10/28/10 $41.51 11/17/10 $40.38 2.9 -2.7%
TTM Technologies, Inc. TTMI 11/05/10 $13.90 11/16/10 $12.50 1.6 -10.0%
Neurocrine Biosciences, Inc. NBIX 11/10/10 $7.55 11/16/10 $6.81 0.9 -9.8%
New Energy Systems Group NEWN 11/08/10 $8.73 11/12/10 $7.12 0.6 -18.5%
Altra Holdings, Inc. AIMC 11/03/10 $16.00 11/10/10 $15.48 1.0 -3.3%
Vicor Corp. VICR 10/22/10 $18.61 11/09/10 $17.31 2.6 -7.0%
OpenTable, Inc. OPEN 11/04/10 $68.78 11/09/10 $65.52 0.7 -4.7%
JinkoSolar Holding Co., Ltd. JKS 11/01/10 $35.38 11/08/10 $35.91 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 $10.30 0.4 +0.6%
Zagg, Inc. ZAGG 10/18/10 $7.58 11/04/10 $8.12 2.4 +7.1%
Deckers Outdoor Corp. DECK 10/29/10 $58.27 11/04/10 $58.88 0.9 +1.0%
Interactive Intelligence ININ 10/15/10 $23.04 11/02/10 $26.91 2.6 +16.8%
Google, Inc. GOOG 10/15/10 $600.26 11/02/10 $616.48 2.6 +2.7%
PowerShares QQQ Trust QQQQ 10/20/10 $51.29 11/01/10 $52.38 1.7 +2.1%
PowerShares QQQ Trust QQQQ 10/20/10 $51.29 10/29/10 $52.33 1.3 +2.0%
PowerShares QQQ Trust QQQQ 10/20/10 $51.29 10/27/10 $51.80 1.0 +1.0%
PowerShares QQQ Trust QQQQ 10/20/10 $51.29 10/26/10 $51.82 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 $116.20 10/19/10 $116.57 1.7 +0.3%
Phillips Van Heusen PVH 09/08/10 $55.02 10/19/10 $60.06 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 $16.06 10/19/10 $14.06 2.9 -12.4%
Longtop Financial Tech LFT 10/13/10 $39.90 10/19/10 $38.37 0.9 -3.8%
LDK Solar Co. Ltd. LDK 10/12/10 $11.10 10/19/10 $11.05 1.0 -0.5%
Globe Specialty Metals GSM 09/20/10 $13.75 10/19/10 $14.77 4.1 +7.4%
Fabrinet FN 10/01/10 $15.86 10/19/10 $17.46 2.6 +10.1%
Amtech Systems Inc. ASYS 09/21/10 $15.90 10/19/10 $17.88 4.0 +12.5%
S&P Depositary Receipt SPY 10/07/10 $116.20 10/15/10 $117.55 1.1 +1.2%
Cyberonics Inc. CYBX 10/06/10 $26.91 10/15/10 $26.47 1.3 -1.6%
S&P Depositary Receipt SPY 10/07/10 $116.20 10/13/10 $118.19 0.9 +1.7%
Cognex Corp. CGNX 09/13/10 $22.19 10/11/10 $27.40 4.0 +23.5%

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

Subscription Information

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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.

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The Deen's List
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deenslist@deencapital.com

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