The Deen's List(TM)
A service of Deen Capital Management, Inc. (www.deencapital.com)
Vol.1 #94           Wednesday, December 24, 2003           10:02am ET

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

Market stance: BULLISH (since Dec 12 2003)

***************** Bought Digital Insight Corp. (DGIN) ******************

Net buy price in managed accounts(*)... $25.06
Yesterday's close (Dec 23)............. $25.00
Net change (based on net buy price).... +$0.06
Today's volume as of 9:38am ET ........ 45,903 ($1.2 million)
Average daily volume................... 579,800 ($14.5 million)
This year's earnings-per-share......... $0.65 (est)
Next year's earnings-per-share......... $0.94 (est)
P/E using next year's earnings......... 26.7 (est)
Earnings growth rate, next 5 years..... 30.0% 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 Dec 24, I bought DGIN.  Digital Insight (www.digitalinsight.com)
provides real-time Internet banking services to small- and mid-sized
banks, credit unions, and savings and loans.

Here's why I bought this stock:

+ Breakout:  On Tue Dec 23, the stock broke out of a 4-month trading
range on moderately heavy volume (about 1.8x average).

+ Excellent recent sales growth:  Here are the quarterly year-to-year
sales growth rates from the last four quarters, in chronological order:
+27%, +18%, +16%, and, most recently, for the quarter ended Sep 30,
+16% to $39.4 million.

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

Dec 02 vs Dec 01: 12c vs 4c
Mar 03 vs Mar 02: 13c vs 4c
Jun 03 vs Jun 02: 15c vs 6c
Sep 03 vs Sep 02: 18c vs 11c

+ Rising estimates:  According to recent data from First Call, the
consensus earnings estimate for 2003 is 65c, up from 63c 90 days ago;
and the consensus estimate for 2004 is 94c, up from 92c 90 days ago.

+ Valuation:  At 27 times next year's estimated earnings and a projected
5-year annualized earnings growth rate of 30%, the stock is attractively
priced.

+ History of earnings surprises:  This company has reported earnings
exactly 1c ahead of estimates in each of the past four quarters.

+ The company's industry group ("Computer Software - Financial") has
risen just slightly in relative strength over the past three months,
according to Investor's Business Daily.

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