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.
* 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 23, 2004, I bought MPS, first for client accounts, then for my personal accounts. MPS Group, Inc. provides business services with over 170 offices throughout the United States, Canada, the United Kingdom and continental Europe. They deliver a mix of consulting, solutions and staffing services to various industries in disciplines such as information technology, finance and accounting, legal, engineering, health care, executive search and human capital automation. These services are marketed under the following brands: Badenoch & Clark, Accounting Principals, Special Counsel, Entegee, Soliant Health, Diversified Search, Modis, Beeline and Idea Integration. Here's why I bought this stock: + Breakout: Yesterday, Dec 22, the stock broke out of a 9-month trading range to close at a 4-year high. Volume was heavy. + The stock's 200-day moving average is rising, indicating a long-term uptrend. + Excellent and accelerating recent sales growth: Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +4%, +17%, +22%, and, most recently, for the quarter ended Sep 30, +32% to $362.3 million. + Excellent recent earnings-per-share growth: Here are the quarterly EPS figures for the last eight quarters: Dec 03 vs Dec 02: 5c vs 5c Mar 04 vs Mar 03: 5c vs 3c Jun 04 vs Jun 03: 9c vs 6c Sep 04 vs Sep 03: 9c vs 7c + Rising estimates for next year: According to recent data from First Call, the consensus earnings estimate for 2004 is 32c, unchanged from 90 days ago (and up from 2003 actual earnings of 21c); and the consensus estimate for 2005 is 53c, up from 51c 90 days ago. + Valuation: At 23 times next year's estimated earnings and a projected 5-year annualized earnings growth rate of 16.5%, the stock is moderately priced. + History of earnings surprises: This company has reported earnings either in line or a penny ahead of estimates in each of the past four quarters. + The company's industry group ("Commercial Services - Staffing") is ranked #135 for relative strength out of 197 industry groups tracked by Investor's Business Daily. This ranking changes daily. It has fallen slightly just recently, but still remains above its 40- and 60-day moving averages. Also, it is a leading group in this morning's trading session. -KD, December 23, 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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||