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: +66.9% for the 60 months ending February 22, 2018 (vs. +96.6% for the S&P)
For complete performance data, click here
Vol.16 #33 Friday, February 23, 2018 9:49AM EST

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

Market Stance: BEARISH (since February 2, 2018)


Typical Client Performance
Bought Green Dot Corp. (GDOT)
Sold SPDR S&P 500 ETF (SPY) -0.6%
Typical Client Portfolio
Subscription Information
Privacy Policy
Contact Us

Typical Client Performance

Deen Capital S&P 500
Year-to-date as of February 22, 2018 +1.5% * +1.4%
12 months (Feb 22, 2017 to Feb 22, 2018) +16.3% * +16.6%
24 months (Feb 22, 2016 to Feb 22, 2018) +48.4% * +44.5%
36 months (Feb 22, 2015 to Feb 22, 2018) +31.3% * +35.9%
48 months (Feb 22, 2014 to Feb 22, 2018) +31.8% * +59.1%
60 months (Feb 22, 2013 to Feb 22, 2018) +68.2% * +96.6%

* 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 Green Dot Corp. (GDOT)

Initial percent of portfolio (approx.)5.0%
Net buy price in managed accounts*$65.97
Most recent close (Feb 22)$66.30
Net change (based on net buy price)-0.33
Today's volume as of 10:10AM EST104,976 ($6.9 million)
Average daily volume316,000 ($20.8 million)
This year's earnings-per-share$2.83 (est)
Next year's earnings-per-share$3.25 (est)
P/E using next year's earnings20.3 (est)
Earnings growth rate, next 5 years30% per year (est)

* Buy prices shown are net after commissions and fees.

Today, Friday, February 23, 2018, I bought GDOT, for both client and my personal accounts.

Here's why I bought this stock:

+ Earnings surprise: Yesterday, Feb 22, before the open, the company announced results for the quarter ended Dec 31. Earnings came in at 29c per diluted share (vs 19c last year and analysts' consensus 25c). Revenue was up 31% to $213.0 million (analysts' consensus $206.1 million).

+ A "true surprise"*: Prior to the news, the stock had been trading in a sideways pattern for six months. Then, yesterday, it shot up 10% on extremely 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).

+ Breakout: The price movement yesterday represents a breakout from a 7-year range to a new all-time high.

+ Volume spike, mostly on the buy side: Yesterday's volume was more than 4x average, and set a 12-month record.

+ At the time I bought, shortly after the opening bell this morning, the stock price was down a little. I viewed this as a buying opportunity.

+ Excellent recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +11%, +28%, +31%, and, most recently, as cited above, +31%.

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

Mar 17 vs Mar 16: $1.00 vs $0.78
Jun 17 vs Jun 16: $0.55 vs $0.27
Sep 17 vs Sep 16: $0.34 vs $0.21
Dec 17 vs Dec 16: $0.29 vs $0.19

+ Strong and rising earnings-per-share estimates: According to recent data from First Call, the consensus earnings estimate for 2018 is $2.83, revised upward from $2.50 90 days ago (and up from 2017 actual earnings of $2.16); and the consensus estimate for 2019 is $3.25, revised upward from $2.84 90 days ago.

+ Valuation: At 20 times next year's estimated earnings and a projected 5-year annualized earnings growth rate of 30%, the stock may still be, even after yesterday's price jump, attractively priced.

+ History of earnings surprises: This company has reported earnings-per-share at least 3c above estimates in each of the past eight quarters, including the just-reported quarter cited above, which "beat the Street" by 4c.

+ The company's industry group ("Finance - Credit Card Payment Processing") is ranked #27 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, Friday, February 23, 2018

Sold SPDR S&P 500 ETF (SPY) -0.6%

Net sell price in managed accounts*$271.89
Date(s) boughtFeb 21 2018
Net buy price in managed accounts*$273.50
Holding period0.3 weeks
Gain/loss in managed accounts*-0.6% (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, Friday, February 23, 2018, I sold SPY, for both client and my personal accounts.

I sold just enough SPY to pay for GDOT. We remain fully invested.

-KD, Friday, February 23, 2018

Typical Client Portfolio

Company Name Stock
% of
Green Dot Corp. GDOT 02/23/18 $65.97 $65.97 0.0 5.0% -0.0%
Vishay Precision Group, Inc. VPG 02/22/18 $29.52 $30.20 0.1 5.2% +2.3%
SPDR S&P 500 ETF SPY 02/21/18 $273.50 $271.98 0.3 84.2% -0.6%
SolarEdge Technologies, Inc. SEDG 02/15/18 $44.80 $48.90 1.1 5.5% +9.1%
Cash 0.1%  
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 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.


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

Copyright © 2018 Deen Capital Management, Inc.