The Deen's List(TM)
A service of Deen Capital Management, Inc. (www.deencapital.com)
Vol.1 #48           Thursday November 6 2003           2:49pm ET

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

Market stance: BULLISH (since Oct 3 2003)

******************************* Contents *******************************

Bought RSTI
Sold RE

***************************** Bought RSTI ******************************

Rofin-Sinar Tech Inc (RSTI)

Net buy price in managed accounts(*)... $30.23
Yesterday's close (Nov 05)............. $26.61
Net change (based on net buy price).... +$3.62
Today's volume as of 2:11pm ET ........ 1.2 million ($35.7 million)
Average daily volume................... 205,000 ($6.2 million)
This year's earnings-per-share......... $1.14 (est)
Next year's earnings-per-share......... $1.25 (est)
P/E using next year's earnings......... 24.2 (est)
Earnings growth rate, next 5 years..... 17.0% 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.

Rofin-Sinar Technologies (www.rofin-sinar.com) makes laser-based products
used to cut, weld, and mark industrial materials.

Here's why I bought this stock:

+ News:  On Thu Nov 6 before the open, the company announced results for
the quarter ended Sep 30.  Earnings came in at 39c per diluted share (vs
last year 20c and First Call 28c).  Revenue was up 15% to $74.1 million
(Reuters Research consensus $67.2 million).

+ Breakout:  Also on Thu Nov 6, the stock soared on extremely heavy volume.
This was a breakout from a six-week trading range.

+ Excellent recent sales growth:  Here are the quarterly year-to-year
sales growth rates from the last four quarters, in chronological order:
+19%, +14%, +16%, 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: 30c vs 2c
Mar 03 vs Mar 02: 29c vs 10c
Jun 03 vs Jun 02: 30c vs 11c
Sep 03 vs Sep 02: 39c vs 20c

+ Rising estimates:  According to recent data from First Call, the
consensus earnings estimate for FY 04 (Sep) is $1.25, up from $1.16 90
days ago.  Estimates for next year are not available from my usual
source.

+ Valuation:  At 24 times this year's estimated earnings and a projected
5-year annualized earnings growth rate of 17%, the stock is moderately
priced.

+ History of earnings surprises:  This company has reported earnings at
least 4c ahead of estimates in each of the past five quarters (including
the just-reported quarter cited above).

+ The company's industry group ("Elec - Misc Products") has risen in
relative strength over the past six months, according to Investor's
Business Daily.  It now ranks #11 out of 197 groups.

******************************* Sold RE ********************************

Everest Re Group Ltd. (RE)

Net sell price in managed accounts(*).... $82.52
Date(s) bought........................... Oct 21 2003
Net buy price in managed accounts(*)..... $83.94
Holding period........................... 2.3 weeks
Gain/loss in managed accounts............ -1.7% (after commissions)

(*) The net buy (sell) price is the total net cost (proceeds) after
commissions for all managed accounts divided by the total number of
shares.

I still like this stock, but I like RSTI even better.  I sold RE in
order to raise cash to buy RSTI.

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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
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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.