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: +44.7% for the 60 months ending March 11, 2011 (vs. +12.7% for the S&P)
For complete performance data, click here
Vol.9 #62 Saturday, March 12, 2011 11:41PM 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 March 11, 2011 -1.9% * +4.1%
12 months (Mar 11, 2010 to Mar 11, 2011) +3.8% * +15.5%
24 months (Mar 11, 2009 to Mar 11, 2011) +63.5% * +88.7%
36 months (Mar 11, 2008 to Mar 11, 2011) +14.0% * +5.5%
48 months (Mar 11, 2007 to Mar 11, 2011) +26.1% * +1.2%
60 months (Mar 11, 2006 to Mar 11, 2011) +44.7% * +12.7%

* 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: BEARISH (since February 22, 2011)

One week ago, I described this market as "hard to read". That has changed. The preponderance of evidence now, in my view, is pointing to an incipient correction. The path of least resistance appears to be down.

For the past three weeks, the heavy volume has been on the sell side. Last week was no exception. The heaviest volume was Thursday, and Thursday was a big down day.

I've shifted our posture from "neutral" (mostly S&P 500) to "bearish" (mostly cash). Last week, we were down -2.2%, versus -1.2% for the S&P, largely because the few growth stocks we did own early in the week took a severe beating.

We are now 94% cash. Market psychology has turned negative, and market risk is unusually high.

My Three Primary Technical Indicators:

                                       Prior week             Now
                                       ----------           -------
NASDAQ Timing Model (Ver.10r):           BEARISH            BEARISH (1)
Last signal:  BEARISH on Feb 22, 2011

Performance of Recent Stock Picks:  +5.4 NEUTRAL       -0.8 BEARISH (2)

Market Internals:                    67% NEUTRAL        52% BEARISH (3)

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

Stocks:Cash ratio (average):              78:22              6:94

(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, March 12, 2011

Typical Client Portfolio

Company Name Stock
Symbol
Buy
Date
NetBuy
Price*
Current
Price
Weeks
Held
% of
Portfolio
Gain
(Loss)
Semtech Corp. SMTC 03/10/11 $25.15 $24.80 0.1 6.1% -1.4%
Cash 93.9%  
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)*
S&P Depositary Receipt SPY 03/03/11 $133.16 03/10/11 $130.51 1.0 -2.0%
OmniVision Tech Inc. OVTI 03/03/11 $33.15 03/10/11 $30.23 1.0 -8.8%
FARO Technologies, Inc. FARO 03/01/11 $36.16 03/10/11 $34.40 1.3 -4.9%
CAI International, Inc. CAP 03/03/11 $24.34 03/10/11 $23.44 1.0 -3.7%
S&P Depositary Receipt SPY 02/24/11 $131.01 03/01/11 $131.99 0.7 +0.8%
SonoSite Inc. SONO 02/22/11 $37.42 03/01/11 $35.19 1.0 -6.0%
Toro Co. TTC 02/18/11 $63.88 02/24/11 $58.96 0.9 -7.7%
TTM Technologies, Inc. TTMI 02/17/11 $18.47 02/23/11 $17.20 0.9 -6.9%
Amerigon Inc. ARGN 02/17/11 $12.58 02/23/11 $11.49 0.9 -8.7%
S&P Depositary Receipt SPY 02/01/11 $130.84 02/22/11 $132.12 3.0 +1.0%
Panera Bread Co. PNRA 02/14/11 $117.00 02/22/11 $115.96 1.1 -0.9%
Photronics Inc. PLAB 02/09/11 $7.74 02/22/11 $8.66 1.9 +11.8%
Oplink Communications, Inc. OPLK 02/02/11 $24.25 02/22/11 $26.76 2.9 +10.3%
Keynote Systems Inc. KEYN 01/27/11 $19.13 02/22/11 $18.68 3.7 -2.4%
Harmonic Inc. HLIT 02/07/11 $9.54 02/22/11 $9.30 2.1 -2.6%
ESCO Technologies Inc. ESE 02/11/11 $40.54 02/22/11 $38.66 1.6 -4.6%
Cymer Inc. CYMI 02/09/11 $48.36 02/22/11 $51.20 1.9 +5.9%
Buckeye Technologies Inc. BKI 02/07/11 $25.75 02/22/11 $25.94 2.1 +0.7%
Atlas Air Worldwide AAWW 02/15/11 $65.21 02/22/11 $69.87 1.0 +7.1%
S&P Depositary Receipt SPY 02/01/11 $130.84 02/18/11 $134.32 2.4 +2.7%
S&P Depositary Receipt SPY 02/01/11 $130.84 02/17/11 $134.20 2.3 +2.6%
S&P Depositary Receipt SPY 02/01/11 $130.84 02/15/11 $133.03 2.0 +1.7%
S&P Depositary Receipt SPY 02/01/11 $130.84 02/11/11 $133.04 1.4 +1.7%
S&P Depositary Receipt SPY 02/01/11 $130.84 02/09/11 $131.90 1.1 +0.8%
S&P Depositary Receipt SPY 02/01/11 $130.84 02/07/11 $131.98 0.9 +0.9%
S&P Depositary Receipt SPY 01/26/11 $129.49 01/28/11 $127.62 0.3 -1.4%
S&P Depositary Receipt SPY 01/24/11 $128.38 01/28/11 $127.62 0.6 -0.6%
Lululemon Athletica Inc. LULU 01/12/11 $72.62 01/28/11 $68.27 2.3 -6.0%
China MediaExpress Holdings CCME 01/13/11 $20.27 01/28/11 $21.00 2.1 +3.6%
Dice Holdings, Inc. DHX 12/13/10 $13.34 01/27/11 $13.52 6.4 +1.3%
Applied Materials AMAT 01/18/11 $15.30 01/25/11 $15.15 1.0 -1.0%
TTM Technologies, Inc. TTMI 12/06/10 $14.13 01/21/11 $16.39 6.6 +16.0%
S&P Depositary Receipt SPY 12/01/10 $120.47 01/21/11 $128.44 7.3 +6.6%
Molex Inc. Cl A MOLXA 01/10/11 $20.09 01/21/11 $20.73 1.6 +3.2%
Korn/Ferry International KFY 12/08/10 $19.60 01/21/11 $21.85 6.3 +11.4%
Jabil Circuit Inc. JBL 12/21/10 $19.48 01/21/11 $19.83 4.4 +1.8%
Ameresco, Inc. AMRC 12/29/10 $13.65 01/21/11 $16.34 3.3 +19.7%
Interactive Intelligence ININ 01/11/11 $36.57 01/20/11 $32.30 1.3 -11.7%
Amtech Systems Inc. ASYS 01/14/11 $27.43 01/20/11 $25.24 0.9 -8.0%
Alliance Fiber Optic AFOP 01/07/11 $17.40 01/19/11 $17.58 1.7 +1.0%
Buckeye Technologies Inc. BKI 11/24/10 $20.13 01/13/11 $21.20 7.1 +5.3%
S&P Depositary Receipt SPY 12/01/10 $120.47 01/12/11 $128.41 6.0 +6.6%
DDi Corp. DDIC 11/22/10 $10.84 01/12/11 $11.05 7.3 +2.0%
ASML Holding NV ASML 12/09/10 $37.52 01/10/11 $35.29 4.6 -5.9%
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%

* 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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