The Deen's List(TM)
A service of Deen Capital Management, Inc. (www.deencapital.com)
Vol.1 #56           Thursday November 13 2003           2:21pm ET

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

Market stance: BULLISH (since Oct 3 2003)

***************************** Bought MATK ******************************

Martek Biosciences Corp (MATK)

Net buy price in managed accounts(*)... $54.87
Yesterday's close (Nov 12)............. $49.57
Net change (based on net buy price).... +$5.30
Today's volume as of 1:41pm ET ........ 1.0 million ($55.8 million)
Average daily volume................... 516,800 ($28.4 million)
This year's earnings-per-share......... $0.58 (est)
Next year's earnings-per-share......... $1.34 (est)
P/E using next year's earnings......... 40.9 (est)
Earnings growth rate, next 5 years..... 35.0% 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.

Today, Thu Nov 13, I bought MATK.  Martek Biosciences (www.martekbio.com)
develops and markets products derived from microalgae.  These products
include nutritional oils used in infant formula, nutritional supplements
and food fortification ingredients.  The company's nutritional oils are
comprised of fatty acid components, primarily DHA and ARA.

Here's why I bought this stock:

+ News:  On Wed Nov 12 after the close, the company issued a press
release stating that data from two new studies demonstrate that DHA
omega-3 fatty acid results in significant cardioprotective beneift for
patients at risk of developing cardiovascular disease.

+ News:  In a press release dated Nov 11, the company states that a
Tufts University study suggests that increased DHA levels in the blood
and eating three fish meals each week are associated with a 48%
reduction in the risk of Alzheimer's disease in the elderly.

+ A "true surprise"(*):  Prior to the news, the stock had been trading
near the low end of a three-and-a-half month trading range.  Then, on
Thu Nov 13, the stock was up sharply on higher-than-average volume.

(*) "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).

+ Explosive recent sales growth:  Here are the quarterly year-to-year
sales growth rates from the last four quarters, in chronological order:
+163%, +244%, +132%, and, most recently, for the quarter ended Jul 31,
+115% to $29.1 million.

+ Excellent recent earnings-per-share growth:  Here are the quarterly EPS
figures for the last eight quarters:
Oct 02 vs Oct 01: 2c vs (18c)
Jan 03 vs Jan 02: 7c vs (15c)
Apr 03 vs Apr 02: 12c vs (10c)
Jul 03 vs Jul 02: 16c vs (11c)

+ Rising estimates:  According to recent data from First Call, the
consensus earnings estimate for FY 04 (Oct) is 58c, up from 55c 90 days
ago; and the consensus estimate for FY 05 is $1.34, up from $1.30 90
days ago.

+ Valuation:  At 41 times next year's estimated earnings and a projected
5-year annualized earnings growth rate of 35%, the stock is reasonably
priced.

+ History of earnings surprises:  This company has reported earnings at
least a penny ahead of estimates in each of the past three quarters.

The above items were so compelling that I chose to buy the stock in spite
of the following negative factor:

- The company's industry group ("Medical - Biomed/Biotech") has fallen
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
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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.