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: +70.3% for the 60 months ending January 17, 2018 (vs. +108.6% for the S&P)
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Vol.16 #8 Thursday, January 18, 2018 10:00AM EST

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Market Stance: BULLISH (since December 8, 2017)


Typical Client Performance
Bought Ichor Holdings, Ltd. (ICHR)
Sold iShares Core S&P 500 (IVV) +4.4%
Typical Client Portfolio
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Typical Client Performance

Deen Capital S&P 500
Year-to-date as of January 17, 2018 +3.6% * +4.9%
12 months (Jan 17, 2017 to Jan 17, 2018) +21.8% * +25.9%
24 months (Jan 17, 2016 to Jan 17, 2018) +51.7% * +55.0%
36 months (Jan 17, 2015 to Jan 17, 2018) +36.1% * +47.2%
48 months (Jan 17, 2014 to Jan 17, 2018) +32.1% * +64.8%
60 months (Jan 17, 2013 to Jan 17, 2018) +70.3% * +108.6%

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

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Bought Ichor Holdings, Ltd. (ICHR)

Initial percent of portfolio (approx.)9.1%
Net buy price in managed accounts*$32.38
Most recent close (Jan 17)$30.66
Net change (based on net buy price)+1.72
Today's volume as of 10:20AM EST954,833 ($30.9 million)
Average daily volume1.2 million ($38.4 million)
This year's earnings-per-share$2.46 (est)
Next year's earnings-per-share$3.52 (est)
P/E using next year's earnings9.2 (est)
Earnings growth rate, next 5 years48% per year (est)

* Buy prices shown are net after commissions and fees.

Today, Thursday, January 18, 2018, I bought ICHR, for both client and my personal accounts.

Here's why I bought this stock:

+ News: Yesterday, Jan 17, before the open, the company said in an 8-K filing that revenue for the fourth quarter of 2017 (to be announced officially on or about Feb 9), will be approximately $183 million. Analysts' consensus is $182.3 million. They also said that they expect revenue for the first quarter of this year to be in the $240 to $250 million range. The analysts' consensus is $234.5 million.

+ A "true surprise"*: Prior to the news, the stock was near a 4-month low. Then, yesterday, the stock jumped 20% on very heavy volume.

* "True surprise" is my term to describe a company news item that ignites heavy buying and that was not preceded by a short-term run-up in the stock price (i.e. not preceded by rumor).

+ Excellent recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +104%, +103%, +67%, and, most recently, for the quarter ended Sep 30, +56% to $164.5 million.

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

Dec 16 vs Dec 15: 50c vs  1c
Mar 17 vs Mar 16: 57c vs 19c
Jun 17 vs Jun 16: 60c vs 29c
Sep 17 vs Sep 16: 62c vs 35c

+ Strong and rising earnings-per-share estimates: According to recent data from First Call, the consensus earnings estimate for 2017 is $2.46, revised upward from $3.45 90 days ago (and up from 2016 actual earnings of $1.34); and the consensus estimate for 2018 is $3.52, revised upward from $2.92 90 days ago.

+ Valuation: At 9 times next year's estimated earnings and a projected 5-year annualized earnings growth rate of 48%, the stock is, by my usual metric, attractively priced.

+ 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 ("Elec - Semiconductor Eqp") is ranked #87 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, Thursday, January 18, 2018

Sold iShares Core S&P 500 (IVV) +4.4%

Net sell price in managed accounts*$281.57
Date(s) boughtDec 28 2017; Dec 29 2017
Net buy price in managed accounts*$269.63
Holding period3.0 weeks
Gain/loss in managed accounts*+4.4% (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, Thursday, January 18, 2018, I sold IVV, for both client and my personal accounts.

I sold just enough IVV to pay for ICHR. We remain fully invested.

-KD, Thursday, January 18, 2018

Typical Client Portfolio

Company Name Stock
% of
Ichor Holdings, Ltd. ICHR 01/18/18 $32.38 $31.33 0.0 8.9% -3.2%
Forward Air Corp. FWRD 01/11/18 $60.50 $61.34 1.0 9.2% +1.4%
SPDR S&P 500 ETF SPY 01/10/18 $273.76 $279.47 1.1 27.0% +2.1%
iShares Core S&P 500 IVV 12/29/17 $269.64 $281.52 2.9 26.4% +4.4%
SPDR S&P 500 ETF SPY 12/08/17 $265.44 $279.47 5.9 28.4% +5.3%
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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