Please read carefully our disclaimers at the end of this newsletter. Market Stance: BULLISH (since December 15, 2004)Contents
Year-To-Date Performance
* An average of managed accounts, net after commissions and fees. Individual account results may vary. See also www.deencapital.com/perform.htm. For information on managed accounts, see www.deencapital.com/mgdaccts.htm. Bought Sirenza Microdevices (SMDI)
* The "Net buy price" is the total net purchase cost after commissions for all managed accounts divided by the total number of shares. Today, Thursday, December 16, 2004, I bought SMDI, first for client accounts, then for my personal accounts. Sirenza Microdevices Inc. is a designer and supplier of high performance radio frequency (RF) components for commercial communications and aerospace/defense equipment manufacturers. Its products optimize the reception and transmission of voice and data signals in communications networks and in other wireless and wireline applications. Here's why I bought this stock: + Breakout: The stock broke out of a 10-month trading range on extremely heavy volume just over a week ago, on Dec 7. That was a technical buy signal. We were able to buy today at a price just below the intraday high of Dec 7, and just above the top of the old trading range. + The stock's 200-day moving average has recently transitioned from falling to rising, indicating a long-term uptrend. + Excellent recent sales growth: Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +131%, +138%, +73%, and, most recently, for the quarter ended Sep 30, +62% to $16.7 million. + Excellent recent earnings-per-share growth: Here are the quarterly EPS figures for the last eight quarters: Dec 03 vs Dec 02: (1c) vs (5c) Mar 04 vs Mar 03: 2c vs (3c) Jun 04 vs Jun 03: 4c vs (2c) Sep 04 vs Sep 03: 6c vs (1c) + Rising estimates: According to recent data from First Call, the consensus earnings estimate for 2004 is 16c, up from 15c 90 days ago; and the consensus estimate for 2005 is 27c, up from 25c 90 days ago. + Valuation: At 22 times next year's estimated earnings and a projected 5-year annualized earnings growth rate of 32.5%, the stock is very attractively priced. + History of earnings surprises: This company has reported earnings at least a penny ahead of estimates in each of the past four quarters. + The company's industry group ("Semiconductor Manufacturing") is ranked #48 for relative strength out of 197 industry groups tracked by Investor's Business Daily. This ranking changes daily, and it has been generally rising over recent weeks and months. -KD, December 16, 2004
* Net buy prices shown are the total net purchase cost after commissions for all managed accounts divided by the total number of shares. ** Current prices are at least 20 minutes old. Welcome to The Deen's ListTM, an 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. Your personal information, including your e-mail address, will be held in strict confidence by Deen Capital Management, Inc. We will not share it with or sell it to others. All stocks discussed in The Deen's ListTM involve a high degree of risk. It should not be assumed that any stock discussed in The Deen's ListTM 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 Copyright © 2004 Deen Capital Management, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||