The Deen's List(TM)
A service of Deen Capital Management, Inc. (www.deencapital.com)
Vol.1 #91           Monday December 22 2003           4:02pm ET

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

Market stance: BULLISH (since Dec 12 2003)

****************** Bought Edge Petroleum Corp. (EPEX) ******************

Net buy price in managed accounts(*)... $8.87
Yesterday's close (Dec 19)............. $8.11
Net change (based on net buy price).... +$0.76
Today's volume as of 3:12pm ET ........ 365,328 ($3.2 million)
Average daily volume................... 61,900 ($0.5 million)
This year's earnings-per-share......... $0.65 (est)
Next year's earnings-per-share......... $0.87 (est)
P/E using next year's earnings......... 10.2 (est)
Earnings growth rate, next 5 years..... 13.0% 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 Mon Dec 22, I bought EPEX.  Edge Petroleum (www.edgepet.com) is
engaged in the exploration, development, acquisiton and production of
crude oil and natural gas properties in the United States.

This is stock is thinly traded, even by my standards.  Only about
62,000 shares or so change hands per day, on average.  For this reason,
I bought a relatively small position.

Here's why I bought this stock:

+ Technical: There was a strong heavy-volume breakout from a 2-month
trading range back on Nov 7.  On Mon Dec 22, the day I bought, we had
an excellent high-volume follow-through day.

+ Excellent and accelerating recent sales growth:  Here are the
quarterly year-to-year sales growth rates from the last four quarters,
in chronological order: +9%, +39%, +24%, and, most recently, for the
quarter ended Sep 30, +72% to $8.9 million.

+ Excellent recent earnings-per-share growth:  Here are the quarterly
EPS figures for the last eight quarters:

Dec 02 vs Dec 01: 1c vs (20c)
Mar 03 vs Mar 02: 10c vs (2c)
Jun 03 vs Jun 02: 16c vs 8c
Sep 03 vs Sep 02: 17c vs 2c

+ Rising estimates:  According to recent data from First Call, the
consensus earnings estimate for 2003 is 65c, up from 60c 90 days ago;
and the consensus estimate for 2004 is 87c, up from 63c 90 days ago.

+ Valuation:  At 10 times next year's estimated earnings and a projected
5-year annualized earnings growth rate of 13%, the stock is attractively
priced.

+ The company's industry group ("Oil&Gas - US Exploration & Production")
has risen in relative strength over the past three months, according
to Investor's Business Daily.

*********************** 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.