The Deen's List(TM)
A service of Deen Capital Management, Inc. (www.deencapital.com)
Vol.1 #38           Monday October 27 2003           10:38am ET

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

Market stance: BULLISH (since Oct 3 2003)

***************************** Bought SOHU ******************************

Sohu.Com Inc (SOHU)

Net buy price in managed accounts(*)... $38.25
Yesterday's close (Oct 24)............. $37.20
Net change (based on net buy price).... +$1.05
Today's volume as of 9:34am ET ........ 497,456 ($19.0 million)
Average daily volume................... 4.4 million ($169.9 million)
This year's earnings-per-share......... $0.75 (est)
Next year's earnings-per-share......... $1.32 (est)
P/E using next year's earnings......... 29.1 (est)
Earnings growth rate, next 5 years..... 40.0% 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.

Sohu.com (www.sohu.com) is a Chinese Internet portal company.  They offer
sophisticated Chinese language products and services addressing the
specific needs of Chinese Internet users.

Here's why I bought this stock:

+ News:  On Fri Oct 24 before the open, the company announced results for
the quarter ended Sep 30.  Earnings came in at 7c per diluted share (vs
breakeven last year).  Revenue was up 194% to $22.1 million.  The company
also projected strong growth for the fourth quarter, with earnings now
expected to be in the range of 24c to 28c per diluted share, and revenue
expected to soar some 300% or more.

+ A "true surprise"(*):  The stock shot up on Friday $4.39 to $37.20 on
very heavy volume of 15 million shares (daily average 4.4 million).  That
volume set an all-time record for this stock.  Prior to the news, the
stock was trading near a 7-week low.

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

+ Explosive recent sales growth:  Here are the quarterly year-to-year
sales growth rates from the last four quarters, in chronological order:
+157%, +218%, +215%, and, as cited above, +194%.

+ Excellent recent earnings-per-share growth:  Here are the quarterly EPS
figures for the last eight quarters:
Dec 02 vs Dec 01: 6c vs (7c)
Mar 03 vs Mar 02: 12c vs (6c)
Jun 03 vs Jun 02: 19c vs (2c)
Sep 03 vs Sep 02: 7c vs 0c

+ Very strong earnings growth projections:  According to recent data from
First Call, the consensus earnings estimate for 2003 is 75c (unchanged
from 90 days ago); and the consensus estimate for 2004 is $1.32
(also unchanged from 90 days ago).

+ Valuation:  At 29 times next year's estimated earnings and a projected
5-year annualized earnings growth rate of 40%, the stock is attractively
priced.

+ The company's industry group ("Internet - Content") is ranked #3 out of
197 industry groups tracked by Investor's Business Daily for relative
strength over the past three months.

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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
completeness.

************************************************************************

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.