The Deen's List(TM)
A service of Deen Capital Management, Inc. (www.deencapital.com)
Vol.1 #46           Tuesday November 4 2003           2:03pm ET

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

Market stance: BULLISH (since Oct 3 2003)

***************************** Bought PRAA ******************************

Portfolio Recovery Assoc (PRAA)

Net buy price in managed accounts(*)... $26.28
Yesterday's close (Nov 03)............. $26.17
Net change (based on net buy price).... +$0.11
Today's volume as of 1:20pm ET ........ 16,408 ($0.4 million)
Average daily volume................... 173,200 ($4.6 million)
This year's earnings-per-share......... $1.31 (est)
Next year's earnings-per-share......... $1.56 (est)
P/E using next year's earnings......... 16.8 (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 Tue Nov 4, I bought PRAA for those accounts with sufficient cash.
Portfolio Recovery Associates (www.portfoliorecovery.com) purchases,
collects and manages portfolios of defaulted consumer receivables.

Here's why I bought this stock:

+ News:  On Mon Oct 27 after the close, the company announced results
for the quarter ended Sep 30.  Earnings came in at 35c per diluted share
(vs last year 27c and First Call 33c).  Revenue was up 46% to $22.2
million.

+ A "true surprise"(*):  Prior to the news, the stock was trading at or
very near a 6-month low.  Then, on Tue Oct 28, the stock soared $3.25 to
$26.85 on very heavy volume of 886,700 shares.  (Average daily volume is
about 155,000 shares.)

(*) "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).

+ Excellent recent revenue growth:  Here are the quarterly year-to-year
revenue growth rates from the last four quarters, in chronological order:
+67%, +58%, +60%, and, most recently, as cited above, +46%.

+ Excellent recent earnings-per-share growth:  Here are the quarterly EPS
figures for the last eight quarters:
Dec 02 vs Dec 01: 24c vs 7c
Mar 03 vs Mar 02: 29c vs 19c
Jun 03 vs Jun 02: 33c vs 24c
Sep 03 vs Sep 02: 35c vs 27c

+ Rising estimates:  According to recent data from First Call, the
consensus earnings estimate for 2003 is $1.31, up from $1.28 90 days ago;
and the consensus estimate for 2004 is $1.56, up from $1.54 90 days ago.

+ Valuation:  At 17 times next year's estimated earnings and a projected
5-year annualized earnings growth rate of 20%, the stock is attractively
priced.

+ History of earnings surprises:  This company has reported earnings at
least 2c ahead of estimates in each of the past four quarters (including
the just-reported quarter cited above).

+ The company's industry group ("Commercial Services - Miscellaneous")
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
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.