The Deen's List(TM)
A service of Deen Capital Management, Inc. (www.deencapital.com)
Vol.1 #40           Monday October 27 2003           12:53pm ET

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

Market stance: BULLISH (since Oct 3 2003)

***************************** Bought EENC ******************************

Enterra Energy Corp (EENC)

Net buy price in managed accounts(*)... $17.99
Yesterday's close (Oct 24)............. $17.05
Net change (based on net buy price).... +$0.94
Today's volume as of 12:37pm ET........ 370,793 ($6.7 million)
Average daily volume................... 158,600 ($2.9 million)
This year's earnings-per-share......... $0.00 (est)
Next year's earnings-per-share......... $0.00 (est)
P/E using next year's earnings......... N/A (est)
Earnings growth rate, next 5 years..... % 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.

Enterra Energy (www.enterraenergy.com) is a small Canadian oil and gas
company.  They explore, develop, and produce oil and gas, mostly from
fields in western Canada.

I just took a loss on this stock last week, buying it on Oct 21 and
selling it on Oct 24.  I think this is a great stock, but I nevertheless
sold because of my rule "Keep Losses Small".

We are buying in at a roughly 6% lower price this time.  Technically
speaking, the chart still looks very strong yet not overbought.  I still
see outstanding near-term price appreciation potential in this stock.
There are two ideal times to buy a stock that has a big pop on huge
volume, in my view: 1) On the day of the pop itself, and 2) at the end
of the first profit-taking dip.  Based on this morning's trade, I now
suspect that last Friday was the end of the first profit-taking dip.

In my buy article of last week on this stock (Vol.1 #31), I did cite
one negative -- that the company's industry group ("Oil&Gas - Canadian
Exploration & Production") has fallen in relative strength over the
past six months.  However, today's Investor's Business Daily indicates
that the group has risen over the past three months.

Here, again, are my reasons for liking this stock:

+ News:  On Thu Oct 9, the company said it expects revenue and cash
flow in the third quarter to increase by about 300% from a year earlier.
They also said they expect earnings of $1.5 to $2 million, compared
with $461,000 a year ago.

NOTE: The company expects to announce third quarter results on Nov 14.

+ Breakout: On Mon Oct 20, the stock broke out of a three-and-a-half
month trading range on extremely heavy volume (952,000 shares vs the
average of about 120,000.  Today, Tue Oct 21, the stock is up again on
substantially heavier volume still.

+ Explosive recent sales growth:  Here are the quarterly year-to-year
sales growth rates from the last four quarters, in chronological order:
-20%, +102%, +293%, and, most recently, for the quarter ended Jun 30,
+266% to $18.5 million.

+ Excellent recent earnings-per-share growth:  Here are the quarterly EPS
figures for the last eight quarters:
Dec 02 vs Dec 01: 8c vs 9c
Mar 03 vs Mar 02: 8c vs (5c)
Jun 03 vs Jun 02: 46c vs 34c
Sep 03 vs Sep 02: 54c vs 4c

+ Valuation:  At 16 times trailing 12-month earnings of $1.16, the stock
is attractively priced.

NOTE: I have no earnings estimate or 5-year growth projection data for
this very small and little-known company.

*********************** Subscription Information ***********************

Welcome to The Deen's List(TM), a new 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.  When I buy or sell a stock, first I take care of
client accounts, then I buy/sell for my personal account(s), and then,
third, I send out this newsletter.

Your feedback is welcome.  Send e-mail to deenslist@deencapital.com.
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 confidence by Deen Capital Management, Inc.  We will not share it
with or sell it to others.

************************ 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.