The Deen's List(TM)
A service of Deen Capital Management, Inc. (www.deencapital.com)
Vol.1 #47           Tuesday November 4 2003           3:01pm ET

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

Market stance: BULLISH (since Oct 3 2003)

***************************** Bought DIOD ******************************

Diodes Inc (DIOD)

Net buy price in managed accounts(*)... $25.46
Yesterday's close (Nov 03)............. $24.02
Net change (based on net buy price).... +$1.44
Today's volume as of 2:23pm ET ........ 120,681 ($3.1 million)
Average daily volume................... 34,900 ($0.9 million)
This year's earnings-per-share......... $0.99 (est)
Next year's earnings-per-share......... $1.22 (est)
P/E using next year's earnings......... 20.9 (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.

Diodes Inc. (www.diodes.com) makes discrete semiconductor products,
primarily to the communications, computing, industrial, consumer
electronics and automotive markets.

Here's why I bought this stock:

+ News:  On Tue Oct 28 before the open, the company announced results for
the quarter ended Sep 30.  Earnings came in at 26c per share (vs last
year 20c and First Call 24c).  Revenue was up 15% to $34.9 million.

+ A "true surprise"(*):  Prior to the news, the stock was trading in the
lower half of a 3-month trading range.

(*) "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).

+ Breakout:  As I write this on Tue Nov 4, the stock is breaking out of
its 3-month trading range on much heavier-than-normal volume.

+ Excellent recent sales growth:  Here are the quarterly year-to-year
sales growth rates from the last four quarters, in chronological order:
+13%, +9%, +11%, and, most recently, as cited above, +15%.

+ Excellent recent earnings-per-share growth:  Here are the quarterly EPS
figures for the last eight quarters:
Dec 02 vs Dec 01: 25c vs 1c
Mar 03 vs Mar 02: 21c vs 2c
Jun 03 vs Jun 02: 23c vs 18c
Sep 03 vs Sep 02: 26c vs 20c

+ Strong earnings growth projections:  According to recent data from
First Call, the consensus earnings estimate for 2003 is 99c, up from 87c
90 days ago; and the consensus estimate for 2004 is $1.22, down from
$1.27 90 days ago.

+ Valuation:  At 21 times next year's estimated earnings and a projected
5-year annualized earnings growth rate of 20%, the stock is attractively
priced.

+ The company's industry group ("Electronics - Semiconductor Mfg") is
ranked #5 out of 197 industry groups tracked by Investor's Business Daily
for relative strength over the past six 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
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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.