The Deen's List(TM) A service of Deen Capital Management, Inc. (www.deencapital.com) Vol.1 #96 Saturday, December 27, 2003 Please read carefully our disclaimers at the end of this newsletter. Market stance: BULLISH (since Dec 12 2003) ******************** Weekly Status Report: Contents ******************** Market Commentary Open Positions Positions Closed Last Week Subscription Information Privacy Policy Disclaimers *************** Weekly Status Report: Market Commentary **************** I continue to override my bearish NASDAQ Timing Model, primarily on the basis of the performance of my stock picks. My Index which tracks this improved again last week. Over the past four Fridays it's climbed from +4.9 to +5.5 to +5.7 to +8.0. This is reflected in our performance last week, which handily exceeded the major market averages. In general, it appears market internals, after an early December correction. are now improving, This new and favorable trend could easily spill over into January. As we approach the new year, I am very optimistic. We did passably well in 2003, keeping up with the S&P 500, but I also know that I underperformed my potential significantly. This was largely due to selling stocks too soon. Both losing stocks which later bounced back, and winning stocks which might have been even bigger winners. The "selling too soon" was an over-reaction to the Bear Market of 2000 to 2002. During the Bear Market, I held losing stocks too long, allowing losses to get out of hand. During 2003, I over-corrected. I sold losing stocks too quickly, giving them too little "wiggle room". I believe there is a happy compromise, and, in 2004 and beyond, I expect to strike it. To that end, I have gone back to the drawing board and developed a new StockSell Program (Ver.13r), which puts this "happy compromise" principle into a computer algorithm. For more on this subject, see last week's "Research Update". In summary, Our 2003 performance was good, and I have reason to be optimistic that our 2004 performance will be even better. My best wishes to you and yours for the Holidays. -KD ***************** Weekly Status Report: Open Positions ***************** Stock Buy NetBuy Current Holding Gain Symbol Date Price* Price Period (Loss) ----- -------- ------ ------- --------- ------ ACGL 12/12/03 $39.21 $39.32 2.0 weeks +0.3% ADIC 12/12/03 $13.68 $13.85 2.0 weeks +1.3% APSG 12/18/03 $23.52 $23.00 1.1 weeks -2.2% BSX 10/15/03 $32.38 $35.13 10.3 weeks +8.5% DGIN 12/24/03 $25.06 $25.08 0.3 weeks +0.1% ENH 11/26/03 $31.04 $33.89 4.3 weeks +9.2% EPEX 12/22/03 $8.87 $10.20 0.6 weeks +15.0% HDWR 12/15/03 $20.29 $19.59 1.6 weeks -3.5% MESA 12/19/03 $13.00 $13.00 1.0 weeks 0.0% RIMM 12/23/03 $59.15 $67.86 0.4 weeks +14.7% SHRP 12/26/03 $32.30 $32.39 0.0 weeks +0.3% SPIL 12/23/03 $4.83 $4.93 0.4 weeks +2.0% ZQK 12/19/03 $17.00 $17.58 1.0 weeks +3.4% * "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. ***************************** 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.