The Deen's List(TM)
A service of Deen Capital Management, Inc. (www.deencapital.com)
Vol.1 #75           Tuesday December 9 2003           1:11pm ET

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

Market stance: BULLISH (since Oct 3 2003)

******************** Bought ValueClick Inc. (VCLK) *********************

Net buy price in managed accounts(*)... $8.90
Yesterday's close (Dec 08)............. $7.72
Net change (based on net buy price).... +$1.18
Today's volume as of 11:54am ET........ 3.1 million ($27.7 million)
Average daily volume................... 1.3 million ($12.0 million)
This year's earnings-per-share......... $0.11 (est)
Next year's earnings-per-share......... $0.21 (est)
P/E using next year's earnings......... 42.6 (est)
Earnings growth rate, next 5 years..... 36.0% 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.

ValueClick, Inc. (www.valueclick.com) provides Internet advertising
solutions to website publishers and online advertisers.

Here's why I bought this stock:

+ News:  On Tue Dec 9 before the open, the company raised its guidance
for the fourth quarter and year 2003, and provided initial guidance for
2004.  For details, go to finance.yahoo.com and check the headlines for
VCLK.

+ A "true surprise"(*):  Prior to the news, the stock had been trading
near a 4-month low.  Then, on Dec 9, presumably in response to the news,
the stock soared on heavy 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).

+ Excellent recent sales growth:  Here are the quarterly year-to-year
sales growth rates from the last four quarters, in chronological order:
+54%, +57%, +42%, and, most recently, for the quarter ended Sep 30, +31%
to $22.7 million.

+ Emergence into profitability.  Here are the quarterly EPS figures for
the last eight quarters:
Dec 02 vs Dec 01: 2c vs (5c)
Mar 03 vs Mar 02: 2c vs (2c)
Jun 03 vs Jun 02: 2c vs (4c)
Sep 03 vs Sep 02: 3c vs (1c)

+ Rising estimates:  According to recent data from First Call, the
consensus earnings estimate for 2003 is 11c, up from 10c 90 days ago; and
the consensus estimate for 2004 is 21c, up from 20c 90 days ago.

+ Valuation:  We bought the stock at 42 times next year's estimated
earnings.  That's not excessive for a company which is newly profitable.
The projected 5-year annualized earnings growth rate is 36%.

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 ("Internet - E Commerce") has fallen sharply
in relative strength over the past six months, from #4 to #55 out of 197
groups, 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
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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.