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: +69.3% for the 60 months ending December 29, 2017 (vs. +110.2% for the S&P)
For complete performance data, click here
Vol.16 #1 Tuesday, January 2, 2018 3:56PM EST

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

Market Stance: BULLISH (since December 8, 2017)

Contents

Typical Client Performance
Bought Mesabi Trust (MSB)
Bought YY Inc. ADS (YY)
Sold SPDR S&P 500 ETF (SPY) +1.1%
Typical Client Portfolio
Subscription Information
Privacy Policy
Disclaimers
Contact Us

Typical Client Performance

Deen Capital S&P 500
Year-to-date as of December 29, 2017 +17.8% * +21.7%
12 months (Dec 29, 2016 to Dec 29, 2017) +18.9% * +21.1%
24 months (Dec 29, 2015 to Dec 29, 2017) +33.6% * +33.8%
36 months (Dec 29, 2014 to Dec 29, 2017) +25.4% * +35.7%
48 months (Dec 29, 2013 to Dec 29, 2017) +26.5% * +57.0%
60 months (Dec 29, 2012 to Dec 29, 2017) +70.3% * +110.2%

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

Click here for more performance data.

Click here for information on managed accounts.

Bought Mesabi Trust (MSB)

Initial percent of portfolio (approx.)9.1%
Net buy price in managed accounts*$26.90
Most recent close (Dec 29)$25.15
Net change (based on net buy price)+1.75
Today's volume as of 3:59PM EST181,392 ($4.9 million)
Average daily volume68,600 ($1.8 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

* Buy prices shown are net after commissions and fees.

Today, Tuesday, January 2, 2018, I bought MSB, for both client and my personal accounts.

Here's why I bought this stock:

+ Breakout: The stock is up sharply today on heavy volume, breaking out of a 3-week range to a new 5-year high.

+ Excellent recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +53%, (n/a), +412%, and, most recently, for the quarter ended Oct 31, +254 to $12.2 million.

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

Jan 17 vs Jan 16: $0.34 vs  $0.21
Apr 17 vs Apr 16: $0.28 vs ($0.03)
Jul 17 vs Jul 16: $1.00 vs  $0.18
Oct 17 vs Oct 16: $0.91 vs  $0.24

Earnings estimates are not available for this little-known stock.

+ Valuation: At 11 times trailing 12-month earnings, the stock appears to be attractively priced.

+ The company's industry group ("Mining - Metal Ores") is ranked #15 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, Tuesday, January 2, 2018

Bought YY Inc. ADS (YY)

Initial percent of portfolio (approx.)9.1%
Net buy price in managed accounts*$121.41
Most recent close (Dec 29)$113.06
Net change (based on net buy price)+8.35
Today's volume as of 4:00PM EST1.9 million ($233.6 million)
Average daily volume1.5 million ($176.9 million)
This year's earnings-per-share$6.34 (est)
Next year's earnings-per-share$7.75 (est)
P/E using next year's earnings15.7 (est)
Earnings growth rate, next 5 years5% per year (est)

* Buy prices shown are net after commissions and fees.

Today, Tuesday, January 2, 2018, I bought YY, for both client and my personal accounts.

This is a repeat buy. Here's a link to my original buy article of November 16:

http://www.deencapital.com/newslett/2017/171116.227.html#3

-KD, Tuesday, January 2, 2018

Sold SPDR S&P 500 ETF (SPY) +1.1%

Net sell price in managed accounts*$268.31
Date(s) boughtDec 8 2017
Net buy price in managed accounts*$265.44
Holding period3.6 weeks
Gain/loss in managed accounts*+1.1% (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, Tuesday, January 2, 2018, I sold SPY, for both client and my personal accounts.

I sold just enough SPY to pay for MSB and YY. We remain fully invested.

-KD, Tuesday, January 2, 2018

Typical Client Portfolio

Company Name Stock
Symbol
Buy
Date
NetBuy
Price*
Current
Price**
Weeks
Held
% of
Portfolio
Gain
(Loss)
YY Inc. ADS YY 01/02/18 $121.41 $121.94 0.0 9.1% +0.4%
Mesabi Trust MSB 01/02/18 $26.90 $26.90 0.0 9.0% +0.0%
iShares Core S&P 500 IVV 12/29/17 $269.64 $270.66 0.6 34.4% +0.4%
iShares Core S&P 500 IVV 12/28/17 $269.58 $270.66 0.7 9.6% +0.4%
iShares Core S&P 500 IVV 12/27/17 $269.29 $270.66 0.9 9.3% +0.5%
SPDR S&P 500 ETF SPY 12/08/17 $265.44 $268.66 3.6 28.1% +1.2%
Cash 0.5%  
Total 100%  

* Buy prices shown are net after commissions.

** Current prices are at least 20 minutes old.

Subscription Information

Welcome to The Deen's ListTM, an e-mail stock newsletter from Deen Capital Management, Inc.

My intention is to inform you as quickly as is practical regarding my stock market moves.

Your feedback is welcome. Send e-mail to deenslist@deencapital.com. To subscribe or unsubscribe, include the word "subscribe" or "unsubscribe" in the Subject line.

This newsletter is free to managed account clients. For a limited time, it is also free to all interested parties.

Privacy Policy

Your personal information, including your e-mail address, will be held in strict confidence by Deen Capital Management, Inc. We will not share it with or sell it to others.

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.

Contact Us

The Deen's List
PO Box 30925
Santa Barbara, CA 93130
(800) 353-4990
deenslist@deencapital.com

Copyright © 2018 Deen Capital Management, Inc.