The Deen's List(TM)
A service of Deen Capital Management, Inc. (www.deencapital.com)
Vol.1 #53           Wednesday November 12 2003           11:38am ET

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

Market stance: BULLISH (since Oct 3 2003)

***************************** Bought IPMT ******************************

Ipayment (IPMT)

Net buy price in managed accounts(*)... $27.85
Yesterday's close (Nov 11)............. $23.00
Net change (based on net buy price).... +$4.85
Today's volume as of 10:20am ET........ 409,231 ($11.4 million)
Average daily volume................... 48,300 ($1.3 million)
This year's earnings-per-share......... $0.84 (est)
Next year's earnings-per-share......... $1.05 (est)
P/E using next year's earnings......... 26.6 (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 Wed Nov 12, I bought IPMT.  IPayment Inc. (www.ipaymentinc.com)
provides credit and debit card-based payment processing services to
small merchants.

Here's why I bought this stock:

+ News:  On Tue Nov 11 after the close, the company announced results for
the quarter ended Sep 30.  Earnings came in at 29c per diluted share (vs
last year 12c and First Call 24c).  Revenue was up 105% to $59.8 million
(estimate $54.2 million).

+ A "true surprise"(*):  Prior to the news, the stock had been trading
near the low end of a 4-month trading range.  Then, Wednesday morning,
the stock soared on extremely heavy volume.  About a half-hour after the
opening bell, the stock was at $26.95, up $3.95 on 232,000 shares.
Average volume for an entire day is only 48,000.

(*) "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:  The price movement on Wed Nov 12 represents a breakout from
a four-month trading range.

+ Explosive recent sales growth:  Here are the quarterly year-to-year
sales growth rates from the last four quarters, in chronological order:
+218%, +183%, +152%, and, just announced, +105%.

+ Excellent recent earnings-per-share growth:  Here are the quarterly EPS
figures for the last eight quarters:
Dec 02 vs Dec 01: (13c) vs (45c)
Mar 03 vs Mar 02: 2c vs (24c)
Jun 03 vs Jun 02: (6c) vs (21c)
Sep 03 vs Sep 02: 29c vs 12c

+ Rising estimates:  According to recent data from First Call, the
consensus earnings estimate for 2003 is 84c, unchanged from 90 days ago;
and the consensus estimate for 2004 is $1.05, up from $1.01 90 days ago.

+ Valuation:  At 27 times next year's estimated earnings and a projected
5-year annualized earnings growth rate of 20%, the stock is moderately
priced.

+ The company's industry group ("Financial Services - Misc") has risen
in relative strength over the past three 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.