The Deen's List Vol.2 #303

The Deen's List^TM

A service of Deen Capital Management, Inc. (www.deencapital.com)

Vol.2 #303 Sunday, December 19, 2004

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

Weekly Status Report: Contents

Year-To-Date Performance
Market Commentary
Open Positions
Stocks Sold Over Past 13 Weeks
Subscription Information
Privacy Policy
Disclaimers

Year-To-Date Performance

Year-To-Date as of December 17, 2004
Deen Capital	+1.8%	*
S&P 500	+7.4%

* 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.

Market Commentary

Market Stance: BULLISH (since December 15, 2004)

Last week, I returned to a bullish stance, as it seemed that my bearish call of December 7 was probably a mistake. I had a quick-reversal bullish signal from my NASDAQ Timing Model (Ver.10q), and also my Performance-of-Recent-Stock-Picks Index returned to "green light" territory late Tuesday. Accordingly, I did some buying last week, though we so far have remained mostly in cash.

The balance of the technical evidence at this time favors a bullish stance, in my view, though not by much. It's a tough call.

On the bullish side:

+ My NASDAQ Timing Model (Ver.10q), as I said, gave a bullish signal last week on December 14, reversing its December 7 bearish signal.

+ My Performance-of-Recent-Stock-Picks Index (PRSPI) improved last week from +4.0 to +5.3.

+ The NASDAQ closed at multi-year highs on Tuesday and Wednesday.

On the bearish side:

- When the NASDAQ closed at multi-year highs on Tuesday and Wednesday, it did so by only a tiny margin. It closed just 6 points above the January peak on Tuesday, and 9 points above on Wednesday. That's less than half a percent. Then, Thursday and Friday, it fell by a cumulative 27 points, on expanding volume.

- My Performance-of-Recent-Stock-Picks Index, which was in "green light" territory on Tuesday, Wednesday and Thursday, slipped just barely below the green threshold Friday. It's now near the top end of the "yellow light" range.

- The three heaviest volume days on the NASDAQ since December 6 have been down days. One was December 7, which I thought might have been a major market turning point (I turned bearish), and the other two were Thursday and Friday. On all three days, the NASDAQ was retreating in price on heavy volume from a key resistance level near 2150. (This is a "key resistance level" because it corresponds to the January peak.) This is toppy behavior.

That "double-top" scenario I wrote about when I turned bearish on December 7 may, after all, be upon us. It's quite possible.

-KD, December 19, 2004

Open Positions

Company Name Stock
Symbol Buy
Date NetBuy
Price* Current
Price Weeks
Held Gain
(Loss)

Armor Holdings Inc. AH 12/17/04 $46.40 $46.18 0.0 -0.5%

Sirenza Microdevices SMDI 12/16/04 $5.91 $5.93 0.1 +0.4%

Olympic Steel Inc. ZEUS 12/15/04 $23.95 $25.18 0.3 +5.1%

IXYS Corp. SYXI 12/15/04 $10.15 $10.30 0.3 +1.5%

Standard Pacific Corp. SPF 12/14/04 $61.78 $63.06 0.4 +2.1%

Rofin-Sinar Tech Inc. RSTI 12/13/04 $38.28 $40.83 0.6 +6.7%
Average 0.3 +2.5%

* Net buy prices shown are the total net purchase cost after commissions for all managed accounts divided by the total number of shares.

Stocks Sold Over Past 13 Weeks

Company Name Stock
Symbol Buy
Date NetBuy
Price* Sell
Date NetSell
Price* Weeks
Held Gain
(Loss)

palmOne, Inc. PLMO 12/13/04 $43.91 12/17/04 $33.45 0.6 -23.8%

KongZhong Corp. KONG 12/07/04 $11.17 12/16/04 $9.23 1.3 -17.4%

KongZhong Corp. KONG 12/14/04 $10.00 12/16/04 $9.23 0.3 -7.6%

PC Mall, Inc. MALL 12/15/04 $21.59 12/16/04 $20.54 0.1 -4.8%

Monarch Casino & Resort MCRI 10/27/04 $27.11 12/09/04 $33.45 6.1 +23.4%

NCI Building Systems Inc. NCS 11/16/04 $34.72 12/09/04 $37.63 3.3 +8.4%

Bluegreen Corp. BXG 11/23/04 $14.64 12/09/04 $17.41 2.3 +18.9%

China Yuchai Int'l Ltd. CYD 12/02/04 $17.51 12/09/04 $16.13 1.0 -7.9%

Digital River Inc. DRIV 09/13/04 $27.42 12/08/04 $41.96 12.3 +53.0%

Infocrossing Inc. IFOX 11/17/04 $15.05 12/08/04 $16.75 3.0 +11.3%

Innovative Solutions ISSC 11/18/04 $29.02 12/08/04 $29.68 2.9 +2.2%

Rofin-Sinar Tech Inc. RSTI 08/24/04 $28.28 12/07/04 $37.55 15.0 +32.8%

DHB Industries Inc. DHB 09/24/04 $13.38 12/07/04 $17.99 10.6 +34.5%

Charles River Assoc Inc. CRAI 09/30/04 $38.19 12/07/04 $43.88 9.7 +14.9%

M.D.C. Holdings Inc. MDC 10/12/04 $72.28 12/07/04 $76.40 8.0 +5.7%

Sigmatel Inc. SGTL 10/21/04 $28.28 12/07/04 $34.87 6.7 +23.3%

Nanometrics Inc. NANO 11/02/04 $14.71 12/07/04 $16.52 5.0 +12.2%

NETGEAR, Inc. NTGR 11/03/04 $13.68 12/07/04 $17.29 4.9 +26.4%

Rofin-Sinar Tech Inc. RSTI 11/10/04 $37.22 12/07/04 $37.55 3.9 +0.9%

Excel Maritime Carriers EXM 11/23/04 $27.91 12/07/04 $32.81 2.0 +17.6%

Sify Ltd. ADR SIFY 11/24/04 $6.88 12/07/04 $6.29 1.9 -8.6%

United Therapeutics Corp. UTHR 11/29/04 $43.54 12/07/04 $42.32 1.1 -2.8%

Accredited Home Lenders LEND 11/30/04 $42.93 12/07/04 $44.91 1.0 +4.6%

DHB Industries Inc. DHB 12/01/04 $18.60 12/07/04 $17.99 0.9 -3.3%

Navarre Corp. NAVR 09/21/04 $16.69 12/06/04 $15.69 10.9 -6.0%

Navarre Corp. NAVR 10/13/04 $14.72 12/06/04 $15.69 7.7 +6.6%

Navarre Corp. NAVR 10/22/04 $14.99 12/06/04 $15.69 6.4 +4.7%

Navarre Corp. NAVR 11/12/04 $16.26 12/06/04 $15.69 3.4 -3.5%

Diodes Inc. DIOD 10/01/04 $27.19 12/01/04 $23.97 8.7 -11.8%

Diodes Inc. DIOD 10/19/04 $25.65 12/01/04 $23.97 6.1 -6.6%

LCA Vision Inc. LCAV 10/26/04 $27.58 12/01/04 $33.67 5.1 +22.1%

Diodes Inc. DIOD 11/26/04 $24.77 12/01/04 $23.97 0.7 -3.2%

Littelfuse Inc. LFUS 11/08/04 $38.19 11/30/04 $38.82 3.1 +1.6%

MicroStrategy Inc. MSTR 10/27/04 $63.30 11/29/04 $64.55 4.7 +2.0%

Quiksilver Inc. ZQK 09/13/04 $25.73 11/22/04 $28.62 10.0 +11.2%

F5 Networks Inc. FFIV 10/27/04 $40.08 11/22/04 $39.90 3.7 -0.4%

Amedisys Inc. AMED 09/15/04 $28.84 11/17/04 $31.63 9.0 +9.7%

Dawson Geophysical Co. DWSN 09/29/04 $20.70 11/17/04 $21.13 7.0 +2.1%

Amedisys Inc. AMED 10/21/04 $31.28 11/17/04 $31.63 3.9 +1.1%

Ventiv Health Inc. VTIV 11/08/04 $19.25 11/17/04 $17.58 1.3 -8.7%

Dawson Geophysical Co. DWSN 11/15/04 $23.64 11/17/04 $21.13 0.3 -10.6%

Dawson Geophysical Co. DWSN 11/16/04 $23.34 11/17/04 $21.13 0.1 -9.4%

InfoSpace Inc. INSP 10/26/04 $53.99 11/16/04 $49.59 3.0 -8.1%

MarketWatch Inc. MKTW 10/28/04 $14.01 11/16/04 $17.89 2.7 +27.7%

MarketWatch Inc. MKTW 10/29/04 $13.33 11/16/04 $17.89 2.6 +34.2%

Ctrip.com International CTRP 11/01/04 $41.21 11/11/04 $45.29 1.4 +9.9%

Carpenter Technology Corp. CRS 10/26/04 $48.51 11/05/04 $50.78 1.4 +4.7%

Ditech Communications Corp. DITC 10/21/04 $26.66 11/04/04 $15.07 2.0 -43.5%

Ditech Communications Corp. DITC 11/03/04 $22.75 11/04/04 $15.07 0.1 -33.7%

VSE Corp. VSEC 10/18/04 $28.51 11/02/04 $25.58 2.1 -10.3%

Mannatech Inc. MTEX 10/21/04 $16.40 11/02/04 $16.63 1.7 +1.4%

Hurco Companies Inc. HURC 10/12/04 $15.30 11/01/04 $13.05 2.9 -14.7%

Petroleum Development Corp. PETD 09/07/04 $32.51 10/27/04 $36.79 7.1 +13.2%

Petroleum Development Corp. PETD 10/20/04 $39.43 10/27/04 $36.79 1.0 -6.7%

Comtech Telecom Corp. CMTL 09/22/04 $24.01 10/22/04 $26.81 4.3 +11.6%

Portfolio Recovery Assoc PRAA 10/05/04 $32.56 10/22/04 $31.97 2.4 -1.8%

TASER International, Inc. TASR 10/19/04 $40.36 10/20/04 $40.27 0.1 -0.2%

Universal American Fin'l UHCO 09/21/04 $12.52 10/15/04 $11.81 3.4 -5.7%

J2 Global Communications JCOM 09/21/04 $30.99 10/15/04 $30.06 3.4 -3.0%

Steel Technologies Inc. STTX 09/28/04 $24.79 10/13/04 $25.72 2.1 +3.7%

Sandisk Corp. SNDK 09/10/04 $25.20 10/11/04 $28.86 4.4 +14.5%

Sierra Wireless Inc. SWIR 09/16/04 $18.23 10/07/04 $17.83 3.0 -2.2%

TRM Corp. TRMM 09/21/04 $18.15 10/07/04 $17.66 2.3 -2.7%

ATI Technologies Inc. ATYT 10/07/04 $18.07 10/07/04 $17.00 0.0 -5.9%

Niku Corp. NIKU 08/19/04 $13.09 10/05/04 $14.63 6.7 +11.8%

Volt Info Sciences Inc. VOL 09/15/04 $26.59 10/01/04 $29.03 2.3 +9.2%

ADE Corp. ADEX 08/25/04 $17.86 09/27/04 $17.09 4.7 -4.3%

AudioCodes Ltd. AUDC 09/13/04 $12.74 09/27/04 $12.01 2.0 -5.8%

Cree Inc. CREE 09/20/04 $29.95 09/27/04 $28.13 1.0 -6.1%

Netflix Inc. NFLX 09/07/04 $16.33 09/24/04 $16.62 2.4 +1.8%

eResearchTechnology Inc. ERES 09/14/04 $17.87 09/22/04 $18.36 1.1 +2.7%

Kensey Nash Corp. KNSY 08/18/04 $25.62 09/20/04 $28.75 4.7 +12.2%

Winnebago Industries Inc. WGO 09/02/04 $32.90 09/20/04 $34.55 2.6 +5.0%

Connetics Corp. CNCT 09/02/04 $26.19 09/20/04 $26.20 2.6 +0.0%
Average 3.8 +3.0%

* Net buy (sell) prices shown are the total net purchase cost (proceeds) after commissions for all managed accounts divided by the total number of shares. The Gain(Loss) is therefore net after commissions.

Subscription Information

Welcome to The Deen's List^TM, 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.

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