The Deen's ListTM
A service of Deen Capital Management, Inc. (
Our goal: Outperform the S&P 500 in both up markets and down.
Our result: +17.7% for the 60 months ending April 19, 2016 (vs. +76.9% for the S&P)
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Vol.14 #86 Wednesday, April 20, 2016 4:05PM EDT

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Market Stance: BULLISH (since February 22, 2016)


Typical Client Performance
Bought MaxLinear, Inc. (MXL)
Sold iShares Core S&P 500 (IVV) +2.1%
Typical Client Portfolio
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Typical Client Performance

Deen Capital S&P 500
Year-to-date as of April 19, 2016 -4.0% * +3.4%
12 months (Apr 19, 2015 to Apr 19, 2016) -12.1% * +3.0%
24 months (Apr 19, 2014 to Apr 19, 2016) -2.8% * +17.2%
36 months (Apr 19, 2013 to Apr 19, 2016) +18.9% * +43.3%
48 months (Apr 19, 2012 to Apr 19, 2016) +19.7% * +65.3%
60 months (Apr 19, 2011 to Apr 19, 2016) +17.7% * +76.9%

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

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Bought MaxLinear, Inc. (MXL)

Initial percent of portfolio (approx.)9.1%
Net buy price in managed accounts*$17.04
Most recent close (Apr 19)$15.86
Net change (based on net buy price)+1.18
Today's volume as of 4:06pm EDT2.5 million ($42.2 million)
Average daily volume1.3 million ($21.8 million)
This year's earnings-per-share$1.56 (est)
Next year's earnings-per-share$1.64 (est)
P/E using next year's earnings10.4 (est)
Earnings growth rate, next 5 years15% per year (est)
Corporate HeadquartersCarlsbad, CA

* Buy prices shown are net after commissions and fees.

Today, Wednesday, April 20, 2016, I bought MXL, for both client and my personal accounts.

MaxLinear, Inc. provides integrated, radio-frequency (RF) and mixed-signal circuits used in communication and video display over broadband networks.

Here's why I bought this stock:

+ News: The company updated its first quarter guidance this morning, narrowing its revenue guidance, raising gross margin guidance, and lowering operating expense guidance.

+ Technical: The stock took a big drop yesterday, and has partially recovered today. I am viewing this as a buying opportunity.

+ Excellent and accelerating recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +9%, +99%, +193%, and, most recently, for the quarter ended Dec 31, +205% to $99.0 million.

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

Mar 15 vs Mar 14:  9c vs 10c
Jun 15 vs Jun 14: 12c vs 13c
Sep 15 vs Sep 14: 40c vs  4c
Dec 15 vs Dec 14: 46c vs  5c

+ Strong and rising earnings-per-share estimates: According to recent data from First Call, the consensus earnings estimate for 2016 is $1.56, revised upward from $1.41 90 days ago (and up from 2015 actual earnings of $1.27); and the consensus estimate for 2017 is $1.64, revised upward from $1.41 90 days ago.

+ Valuation: At 10 times next year's estimated earnings and a projected 5-year annualized earnings growth rate of 15%, the stock is attractively priced.

+ History of earnings surprises: This company has reported earnings-per-share at least 2c above estimates in three of the past four quarters. Most recently, for the quarter ended Dec 31, they "beat the Street" by 2c.

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

I chose to buy the stock in spite of the following negative factor:

- The company's industry group ("Electronics - Semiconductor Fabless") is ranked #51 for relative strength out of 197 industry groups tracked by Investor's Business Daily. This ranking changes daily, and it has been generally falling over recent weeks and months.

-KD, Wednesday, April 20, 2016

Sold iShares Core S&P 500 (IVV) +2.1%

Net sell price in managed accounts*$211.38
Date(s) boughtApr 12 2016
Net buy price in managed accounts*$207.03
Holding period1.1 weeks
Gain/loss in managed accounts*+2.1% (after commissions)

* Buy and sell prices shown are net after commissions and fees. This means that the gain/loss shown is also net after transaction expenses.

Today, Wednesday, April 20, 2016, I sold IVV, for both client and my personal accounts.

I sold some IVV in order to pay for MXL. We remain fully invested.

-KD, Wednesday, April 20, 2016

Typical Client Portfolio

Company Name Stock
% of
MaxLinear, Inc. MXL 04/20/16 $17.04 $16.98 0.0 9.1% -0.3%
SPDR S&P 500 ETF SPY 04/19/16 $209.93 $210.17 0.1 14.9% +0.1%
SPDR S&P 500 ETF SPY 04/15/16 $208.04 $210.17 0.7 9.8% +1.0%
iShares Core S&P 500 IVV 04/12/16 $207.03 $211.32 1.1 2.9% +2.1%
Duluth Holdings Inc. DLTH 04/08/16 $21.57 $24.61 1.7 9.8% +14.1%
Edwards Lifesciences Corp. EW 04/04/16 $105.00 $107.99 2.3 9.0% +2.8%
SPDR S&P 500 ETF SPY 04/01/16 $205.91 $210.17 2.7 7.4% +2.1%
Anika Therapeutics Inc. ANIK 03/28/16 $44.83 $48.37 3.3 9.3% +7.9%
Cooper-Standard Holdings Inc CPS 03/21/16 $71.25 $76.37 4.3 8.7% +7.2%
Adobe Systems Inc. ADBE 03/18/16 $93.87 $96.36 4.7 8.9% +2.6%
Universal Electronics Inc. UEIC 03/10/16 $64.20 $66.95 5.9 10.1% +4.3%
Cash 0.1%  
Total 100%  

* Buy prices shown are net after commissions.

** Current prices are at least 20 minutes old.

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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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