The Deen's List(TM)
A service of Deen Capital Management, Inc.
Vol.1 #28           Monday October 20 2003           1:42pm ET

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

Market stance: BULLISH (since Oct 3 2003)

***************************** Bought ADEX ******************************

ADE Corp. (ADEX)

Net buy price in managed accounts(*)... $20.79
Yesterday's close (Oct 17)............. $18.76
Net change (based on net buy price).... +$2.03
Today's volume as of 1:08pm ET ........ 247,640 ($5.1 million)
Average daily volume................... 110,000 ($2.3 million)
This year's earnings-per-share......... $0.44 (est)
Next year's earnings-per-share......... $1.10 (est)
P/E using next year's earnings......... 19.0 (est)
Earnings growth rate, next 5 years..... 20.0% 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.

On Mon Oct 20, I bought ADEX.  ADE Corp. (www.ade.com) makes equipment
used to map and measure the surface, thickness and properties of silicon
wafers.  This equipment is used by chip makers for quality control and
to improve yields and chip speed.

There is an article on this company on page A7 of the Mon Oct 20
Investor's Business Daily.  This article may be found online at
http://biz.yahoo.com/ibd/031020/newamer_1.html

Here's why I bought this stock:

+ Breakout:  The stock broke out of a 5-week trading range on extremely
heavy volume back on Oct 8.  We missed this breakout; instead, we are
buying one day after the stock price completed a 2-day 13% correction.

+ Accelerating recent sales growth:  Here are the quarterly year-to-year
sales growth rates from the last four quarters, in chronological order:
-18%, +3%, +21%, and, most recently, for the quarter ended Jul 31, +29%
to $19.1 million.

+ Emergence into profitability:  Here are the quarterly EPS figures for
the last eight quarters:
Jan 02 vs Jan 01: (13c) vs (29c)
Apr 04 vs Apr 03: 4c vs (24c)
Jul 03 vs Jul 02: 2c vs (30c)
Oct 03 vs Oct 02: 13c vs (36c)

+ Rising estimates:  According to recent data from First Call, the
consensus earnings estimate for FY 03 (Apr) is 44c, up from 43c 90 days
ago; and the consensus estimate for FY 04 is $1.10, up from 99c 90 days
ago.

+ Valuation:  At 19 times next year's estimated earnings and a projected
5-year annualized earnings growth rate of 20%, the stock is attractively
priced.  This low valuation was a major factor in my decision to buy.

+ History of earnings surprises:  This company has reported earnings at
least 2c ahead of estimates in each of the past four quarters.

+ The company's industry group ("Electronics - Scientific / Measuring")
has risen in relative strength over the past six months, according to
Investor's Business Daily.

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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
to be reliable; however, we are not responsible for its accuracy or
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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.