The Deen's List(TM) A service of Deen Capital Management, Inc. (www.deencapital.com) Vol.1 #70 Sunday November 30 2003 Please read carefully our disclaimers at the end of this newsletter. Market stance: BULLISH (since Oct 3 2003) ******************** Weekly Status Report: Contents ******************** Market Commentary Table of Open Positions Table of Positions Closed Last Week Subscription Information Privacy Policy IMPORTANT DISCLAIMERS *************** Weekly Status Report: Market Commentary **************** Last week, the NASDAQ, for the fifth time since this major advance began in March, headed north after a minor pullback was stopped at or near the 50-day moving average. I have recently been on the verge of turning bearish. Last week, I put my skepticism aside and returned to a fully invested posture. The very tentative evidence available so far suggests that that was a good move. We're showing profits on almost all our stocks, and we had a very good week. Last week, I wrote: "My guess is that the bull market will resume by early December, as investors start positioning themselves for what promises to be another excellent earnings season come January. As for this coming holiday week, I would not be surprised to see further weakness." Perhaps I was off by a week. I am now suggesting that the bull market probably resumed last week. Last week, I also gave seven reasons why I was maintaining my bullish stance even in the face of a two-week pullback. Those reasons still apply. Now, we have these additional reasons: + My Performance-of-Recent-Stock-Picks Index rose sharply last week, from +0.9 to +6.9 (scale -10 to +10). Both of my primary market indicators are now solidly bullish. + New economic data released last week was surprisingly strong. I refer to U.S. jobless claims (down 11,000 to 351,000, the lowest level since January 2001), third quarter GDP (up 8.2%, revised from up 7.2%, the best such number since 1984), and durable goods orders (+3.3% vs a month ago, +10.5% vs a year ago). + Corporate profits were up 30% during the third quarter of 2003, and there's every reason to expect continued strong profit growth into 2004. + $123 billion has poured into mutual funds so far this year ($25.5 billion in October). That's versus $26 billion LEAVING mutual funds year-to-date as of this same time in 2002. At some point, the strong economy story will likely become a problem for stocks, as investors start to worry about higher interest rates and inflation. It appears, however, that we're not there yet. In short, the short-term outlook is quite favorable. As always, my take on the market's direction is subject to change without notice, as I re-evaluate market conditions on a daily basis. -KD ***************** Weekly Status Report: Open Positions ***************** Stock Buy NetBuy Current Holding Gain Symbol Date Price* Price Period (Loss) ----- -------- ------ ------- --------- ------ AMKR 11/26/03 $19.75 $19.52 0.3 weeks -1.1% ATYT 11/25/03 $15.18 $15.45 0.4 weeks +1.8% BSX 10/15/03 $32.38 $35.89 6.3 weeks +10.9% CAMD 11/24/03 $8.38 $8.60 0.6 weeks +2.6% CYD 11/24/03 $28.15 $29.65 0.6 weeks +5.3% DAKT 11/24/03 $18.41 $18.56 0.6 weeks +0.8% DIOD 11/04/03 $16.97 $20.25 3.4 weeks +19.3% ENH 11/26/03 $31.04 $31.69 0.3 weeks +2.1% HDWR 10/27/03 $17.36 $19.08 4.6 weeks +9.9% KSWS 10/23/03 $42.84 $48.84 5.1 weeks +14.0% MATK 11/13/03 $54.87 $60.74 2.1 weeks +10.7% QLTI 11/24/03 $16.19 $16.27 0.6 weeks +0.5% RE 11/24/03 $80.36 $82.19 0.6 weeks +2.3% SHRP 11/25/03 $30.83 $31.62 0.4 weeks +2.6% TRMB 10/29/03 $27.84 $30.29 4.3 weeks +8.8% * "Net" buy prices are the total net purchase cost after commissions for all managed accounts divided by the total number of shares. The Gain (Loss) is therefore also net after commissions. *********** Weekly Status Report: Positions Closed Last Week *********** - none - *********************** Subscription Information *********************** Welcome to The Deen's List(TM), a new e-mail stock newsletter from Deen Capital Management, Inc. My intention is to inform you as quickly as is practical regarding my stock market moves. When I buy or sell a stock, first I take care of client accounts, then I buy/sell for my personal account(s), and then, third, I send out this newsletter. Your feedback is welcome. Send e-mail to deenslist@deencapital.com. To subscribe or unsubscribe, include the word "subscribe" or "unsubscribe" in the Subject line. This newsletter is free to managed account clients. For a limited time, it is also free to all interested parties. **************************** Privacy Policy **************************** Your personal information, including your e-mail address, will be held in confidence by Deen Capital Management, Inc. We will not share it with or sell it to others. ************************ 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.