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: +60.0% for the 60 months ending April 26, 2018 (vs. +85.7% for the S&P)
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Vol.16 #90 Friday, April 27, 2018 3:25PM EDT

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Market Stance: BULLISH (since April 10, 2018)


Typical Client Performance
Bought DMC Global, Inc. (BOOM)
Sold iShares Core S&P 500 (IVV) -0.2%
Typical Client Portfolio
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Typical Client Performance

Deen Capital S&P 500
Year-to-date as of April 26, 2018 -1.1% * +0.3%
12 months (Apr 26, 2017 to Apr 26, 2018) +9.8% * +13.8%
24 months (Apr 26, 2016 to Apr 26, 2018) +39.6% * +32.5%
36 months (Apr 26, 2015 to Apr 26, 2018) +21.4% * +33.6%
48 months (Apr 26, 2014 to Apr 26, 2018) +36.5% * +54.7%
60 months (Apr 26, 2013 to Apr 26, 2018) +60.1% * +85.7%

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

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Bought DMC Global, Inc. (BOOM)

Initial percent of portfolio (approx.)5.0%
Net buy price in managed accounts*$39.54
Most recent close (Apr 26)$31.65
Net change (based on net buy price)+7.89
Today's volume as of 3:32PM EDT655,829 ($25.9 million)
Average daily volume84,700 ($3.3 million)
This year's earnings-per-share$1.26 (est)
Next year's earnings-per-share$1.90 (est)
P/E using next year's earnings20.8 (est)
Earnings growth rate, next 5 years20% per year (est)

* Buy prices shown are net after commissions and fees.

Today, Friday, April 27, 2018, I bought BOOM, for both client and my personal accounts.

Here's why I bought this stock:

+ Huge earnings surprise: Yesterday, April 26, after the close, the company announced results for the quarter ended March 31. Earnings came in at 49c per diluted share (vs a loss of (21c) last year and analysts' consensus 22c). Revenue was up 73% to $67.3 million (analysts' consensus $60.0 million).

+ Volume spike, mostly on the buy side: As I write this, about half an hour before the close, volume has already more than doubled the previous 12-month record.

+ Excellent and accelerating recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +14%, +43%, +36%, and, most recently, as cited above, +73%.

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

Jun 17 vs Jun 16:  4c vs  (4c)
Sep 17 vs Sep 16: 22c vs (19c)
Dec 17 vs Dec 16:  9c vs (15c)
Mar 18 vs Mar 1u: 49c vs (21c)

+ Strong and rising earnings-per-share estimates: According to recent data from First Call, the consensus earnings estimate for 2018 is $1.26, revised upward from $1.00 90 days ago (and up from 2017 actual earnings of 16c); and the consensus estimate for 2019 is $1.90, revised upward from 15c 90 days ago.

+ Valuation: At 21 times next year's estimated earnings and a projected 5-year annualized earnings growth rate of 20%, the stock is, by my usual metric, reasonably priced.

+ The company's industry group ("Metal Proc & Fabrication") is ranked #105 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, April 27, 2018

Sold iShares Core S&P 500 (IVV) -0.2%

Net sell price in managed accounts*$268.42
Date(s) boughtApr 20 2018
Net buy price in managed accounts*$268.86
Holding period1.0 weeks
Gain/loss in managed accounts*-0.2% (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, April 27, 2018, I sold IVV, for both client and my personal accounts.

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

-KD, Friday, April 27, 2018

Typical Client Portfolio

Company Name Stock
% of
DMC Global, Inc. BOOM 04/27/18 $39.54 $39.50 0.0 5.1% -0.1%
SPDR S&P 500 ETF SPY 04/25/18 $262.51 $266.72 0.3 11.7% +1.6%
iShares Core S&P 500 IVV 04/23/18 $268.32 $268.59 0.6 9.7% +0.1%
iShares Core S&P 500 IVV 04/20/18 $268.86 $268.59 1.0 0.7% -0.1%
Movado Group Inc. MOV 04/17/18 $39.68 $39.95 1.4 5.1% +0.7%
SPDR S&P 500 ETF SPY 04/10/18 $264.27 $266.72 2.4 67.7% +0.9%
Cash 0.0%  
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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