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: +34.2% for the 60 months ending August 12, 2016 (vs. +104.9% for the S&P)
For complete performance data, click here
Vol.14 #176 Monday, August 15, 2016 11:11AM EDT

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

Market Stance: BULLISH (since July 1, 2016)


Typical Client Performance
Bought Xinyuan Real Estate Co. Ltd. (XIN)
Sold iShares Core S&P 500 (IVV) +1.4%
Typical Client Portfolio
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Typical Client Performance

Deen Capital S&P 500
Year-to-date as of August 12, 2016 +3.8% * +8.2%
12 months (Aug 12, 2015 to Aug 12, 2016) +2.6% * +6.9%
24 months (Aug 12, 2014 to Aug 12, 2016) +9.0% * +17.5%
36 months (Aug 12, 2013 to Aug 12, 2016) +13.0% * +37.1%
48 months (Aug 12, 2012 to Aug 12, 2016) +34.0% * +68.3%
60 months (Aug 12, 2011 to Aug 12, 2016) +35.9% * +104.9%

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

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Bought Xinyuan Real Estate Co. Ltd. (XIN)

Initial percent of portfolio (approx.)5.6%
Net buy price in managed accounts*$5.94
Most recent close (Aug 12)$5.86
Net change (based on net buy price)+0.08
Today's volume as of 11:31am EDT505,483 ($3.0 million)
Average daily volume174,800 ($1.0 million)
This year's earnings-per-sharen/a (est)
Next year's earnings-per-sharen/a (est)
P/E using next year's earningsn/a
Earnings growth rate, next 5 yearsn/a
Corporate HeadquartersChina Central Place, Tower II

* Buy prices shown are net after commissions and fees.

Today, Monday, August 15, 2016, I bought XIN, for both client and my personal accounts.

Xinyuan Real Estate Co., Ltd. is a China-based real estate developer of residential projects that include multi-layer and high-rise apartment buildings.

Here's why I bought this stock:

+ Earnings news: Last Friday, Aug 12, after the close, the company announced results for the quarter ended June 30. Earnings came in at 39c per diluted share (vs 27c last year). Revenue was up 37% to $376.6 million.

Analysts' estimates are not available.

+ Breakout: The stock jumped 9% on Friday on very heavy volume. This was a breakout from a 4-month range to a new 32-month high.

+ Volume spike, mostly on the buy side: Friday's volume was more than 7 times average, and set a 12-month record.

+ Excellent recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +89%, +14%, +41%, and, most recently, as cited above, +37%.

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

Sep 15 vs Sep 14: 31c vs  4c
Dec 15 vs Dec 14: 26c vs 30c
Mar 16 vs Mar 15:  9c vs  6c
Jun 16 vs Jun 15: 39c vs 27c

+ Valuation: At 6 times next year's estimated earnings, the stock may still be, even after Friday's price jump, attractively priced.

+ The company's industry group ("Bldg - Residential/Commercial") is ranked #67 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, August 15, 2016

Sold iShares Core S&P 500 (IVV) +1.4%

Net sell price in managed accounts*$220.50
Date(s) boughtJul 29 2016; Aug 3 2016
Net buy price in managed accounts*$217.51
Holding period2.4 weeks
Gain/loss in managed accounts*+1.4% (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, Monday, August 15, 2016, I sold IVV, for both client and my personal accounts.

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

-KD, Monday, August 15, 2016

Typical Client Portfolio

Company Name Stock
% of
Xinyuan Real Estate Co. Ltd. XIN 08/15/16 $5.94 $5.93 0.0 5.4% -0.2%
Control4 Corp. CTRL 08/11/16 $11.01 $11.11 0.6 6.9% +0.9%
Yirendai Ltd. YRD 08/10/16 $28.96 $30.95 0.7 7.5% +6.9%
DTS Inc. DTSI 08/09/16 $32.46 $32.47 0.9 9.0% +0.0%
Amphastar Pharmaceuticals AMPH 08/09/16 $17.94 $18.12 0.9 6.4% +1.0%
MarineMax Inc. HZO 08/05/16 $20.36 $20.60 1.4 9.0% +1.2%
TTM Technologies, Inc. TTMI 08/04/16 $10.17 $10.60 1.6 9.2% +4.3%
Nautilus Inc. NLS 08/02/16 $20.97 $21.54 1.9 9.1% +2.7%
Carbonite Inc. CARB 08/02/16 $13.04 $13.19 1.9 8.8% +1.1%
GrubHub Inc. GRUB 07/28/16 $39.12 $38.33 2.6 8.8% -2.0%
CryoLife, Inc. CRY 07/26/16 $13.70 $15.63 2.9 10.0% +14.1%
Silicom Ltd. SILC 07/25/16 $35.18 $39.36 3.0 9.8% +11.9%
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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