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)
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Vol.9 #7 Monday, January 10, 2011 3:22PM EST

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

Market Stance: BULLISH (since December 1, 2010)

Contents

Typical Client Performance
Bought Molex Inc. Cl A (MOLXA)
Typical Client Portfolio
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.

Bought Molex Inc. Cl A (MOLXA)

Initial percent of portfolio (approx.)5.0%
Net buy price in managed accounts*$20.09
Most recent close (Jan 07)$19.44
Net change (based on net buy price)+0.65
Today's volume as of 3:16pm EST721,119 ($14.5 million)
Average daily volume207,200 ($4.2 million)
This year's earnings-per-sharen/a
Next year's earnings-per-sharen/a
P/E using next year's earningsn/a
Earnings growth rate, next 5 yearsn/a
Corporate HeadquartersLisle, IL
Web sitewww.molex.com

* Buy prices shown are net after commissions and fees.

Today, Monday, January 10, 2011, I bought MOLXA, for both client and my personal accounts.

Molex Inc. makes electronic connectors, interconnection systems, terminals, planar cables, cable assemblies, and backplanes.

Here's why I bought this stock:

+ Breakout attempt today: The stock is up 3.4% on heavy volume as I write this, during the final hour of today's trading session. If this gain holds at the close, it will be a 15-month trading range to a new 2-year high.

+ I find this chart pattern particularly bullish, because the stock has touched but then retreated from the $20 resistance area four times over the past 16 months. That makes today's breakout all the more significant from this technician's point of view.

+ Volume spike, mostly on the buy side: As I write this, today's volume is more than 3.5 times the daily average.

+ Excellent recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +9%, +50%, +48%, and, most recently, for the quarter ended Sep 30, +33% to $897.7 million.

+ Excellent recent earnings-per-share growth. Here are the quarterly EPS figures for the last eight quarters:

Dec 09 vs Dec 08: 24c vs  20c Mar 10 vs Mar 09: 29c vs (14c) Jun 10 vs Jun
09: 39c vs  (9c) Sep 10 vs Sep 09: 46c vs  18c

I see no analyst estimates or earnings surprise history for this little-known stock.

+ Valuation: At 15 times trailing 12-month earnings, the stock seems attractively priced.

+ The company's industry group ("Electronic Parts") is ranked #38 for relative strength out of 197 industry groups tracked by Investor's Business Daily. This ranking changes daily, and it has been generally rising over recent weeks and months.

+ The stock's 200-day moving average is rising, indicating a long-term uptrend.

-KD, Monday, January 10, 2011

Typical Client Portfolio

Company Name Stock
Symbol
Buy
Date
NetBuy
Price*
Current
Price**
Weeks
Held
% of
Portfolio
Gain
(Loss)
Molex Inc. Cl A MOLXA 01/10/11 $20.09 $20.11 0.0 4.9% +0.1%
Alliance Fiber Optic AFOP 01/07/11 $17.40 $17.65 0.4 6.2% +1.5%
Ameresco, Inc. AMRC 12/29/10 $13.65 $15.47 1.7 6.5% +13.3%
Jabil Circuit Inc. JBL 12/21/10 $19.48 $20.90 2.9 4.8% +7.3%
Dice Holdings, Inc. DHX 12/13/10 $13.34 $14.12 4.0 5.0% +5.8%
Korn/Ferry International KFY 12/08/10 $19.60 $23.14 4.7 5.3% +18.0%
TTM Technologies, Inc. TTMI 12/06/10 $14.13 $14.14 5.0 5.8% +0.1%
S&P Depositary Receipt SPY 12/01/10 $120.47 $127.07 5.7 43.1% +5.5%
Buckeye Tech Inc. BKI 11/24/10 $20.13 $23.65 6.7 6.7% +17.5%
DDi Corp. DDIC 11/22/10 $10.84 $11.56 7.0 6.0% +6.7%
Cash 5.6%  
Total 100%  

* Buy prices shown are net after commissions.

** Current prices are at least 20 minutes old.

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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