The Deen's ListTM
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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

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Market Stance: BULLISH (since December 1, 2010)


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

* 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
% of
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.

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