The Deen's List(TM)
A service of Deen Capital Management, Inc.
Vol.1 #20           Monday October 13 2003           1:11pm ET

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

Market stance: BULLISH (since Oct 3 2003)

****************************** Bought TSA ******************************

Sports Authority Inc The (TSA)

Net buy price in managed accounts(*)... $37.74
Yesterday's close (Oct 10)............. $35.00
Net change (based on avg buy price).... +$2.74
Today's volume as of 12:31pm ET........ 770,100 ($29.1 million)
Average daily volume................... 278,100 ($10.5 million)
This year's earnings-per-share......... $1.88 (est)
Next year's earnings-per-share......... $2.51 (est)
P/E using next year's earnings......... 15.0 (est)
Earnings growth rate, next 5 years..... 17.5% per year (est)

(*) The "Net buy price" is the total net purchase cost after commissions
for all managed accounts divided by the total number of shares.

Sports Authority (www.thesportsauthority.com) is a sporting goods
retailer in the western U.S.  The Company operates stores under the
name Gart Bros. Sporting Goods, Sportsmart, and Oshman's Sporting
Goods.

Here's why I bought this stock:

+ News:  This morning before the open, the company announced that it
expects to earn 13c to 15c per share, excluding costs of the recent
merger with Gart Sports.  That's far better than the First Call consensus
of 4c, and also compares favorably with last year's 11c.  The Company
also indicated that it expects to report earnings for the fiscal year
ending Jan 04 of $1.98 to $2.03, excluding merger costs.

+ Enthusiastic market reaction:  As I write this mid-day on Monday,
the stock is up about $2.70 on 770,000 shares.  That's very heavy volume
for a stock with a daily average of about 278.000 shares.

+ The stock is attempting to break out of an 18-month trading range.
The stock's previous all-time closing high was $37.75 on Apr 16 2002.

+ Rising estimates:  According to recent data from First Call, the
consensus earnings estimate for FY 04 (Jan) is $1.88, down from $1.95 90
days ago (but this is superceded by the Company's forecast cited above
of $1.98 to $2.03); and the consensus estimate for FY 05 is $2.51, up
from $2.26 90 days ago.

+ Valuation:  At 15 times next year's estimated earnings and a projected
5-year annualized earnings growth rate of 17.5%, the stock is
attractively priced.

+ History of earnings surprises:  This company has reported earnings at
least a penny ahead of estimates in each of the past four quarters.

The above items were so compelling that I chose to buy the stock in spite
of these negative considerations:

- Modest recent earnings-per-share growth:  Here are the quarterly EPS
figures for the last eight quarters:
Oct 02 vs Oct 01: 11c vs 3c
Jan 03 vs Jan 02: $1.03 vs 95c
Apr 03 vs Apr 02: 18c vs 22c
Jul 03 vs Jul 02: 50c vs 48c

- Weak recent sales growth:  Here are the quarterly year-to-year sales
growth rates from the last four quarters, in chronological order: +4%,
0%, -7%, and, most recently, for the quarter ended Jul 2003, +2%.

- The company's industry group ("Retail - Leisure Products") has fallen
in relative strength over the past six months, according to Investor's
Business Daily.

- The stock price has run up in price prior to the news.  For this
reason, I bought only a small position.

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************************ IMPORTANT DISCLAIMERS *************************

* All stocks discussed in The Deen's List(TM) involve a high degree of
risk.  It should not be assumed that any stock discussed in The Deen's
List(TM) 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
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************************************************************************

Ken Deen
Deen Capital Management, Inc.
PO Box 30925
Santa Barbara, CA 93130
(805) 682-1870
deenslist@deencapital.com

Copyright (C) 2003 Deen Capital Management, Inc.