The Deen's List Vol.2 #313

The Deen's List^TM

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

Vol.2 #313 Friday, December 24, 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 23, 2004
Deen Capital	+4.3%	*
S&P 500	+8.8%

* 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)

This was an excellent week, with the market averages up nicely, and, more especially, with Deen Capital clients doubling the gain of the NASDAQ Composite. (+1.2% for the NASDAQ versus +2.4% for the average Deen Capital account.)

That's a strong showing, especially so given that we started the week 64% in cash.

And yet I am still concerned about a possible market top here. I view the January 2004 peak of 2054 as a key area for the NASDAQ Composite. So far, the NASDAQ has topped that peak by only a few points. We haven't yet convincingly cleared this important resistance area.

I'm concerned, but not enough to sit on cash. After all, two out of my three primary market indicators are bullish:

- My NASDAQ Timing Model (Ver.10q) remains on its Dec 20 bearish signal.

+ My Performance-of-Recent-Stock-Picks Index returned to "green light" territory last week, rising from +5.3 to +5.8 (scale -10 to +10; the "green light" threshold is +5.6).

+ 82% of stocks $8 and up are trading above their 50-day moving average. This metric has now risen two weeks in a row, and now stands less than three points away from its highest reading of the year (that was 84.9% set on December 1).

For these reasons, then, it is my view that, on balance, the market is healthy, and that this is a good time to be in stocks.

As always, of course, my market stance is subject to change, as I re-evaluate market conditions daily.

My best wishes to you and yours for a safe, healthy and happy holidays.

-KD, December 24, 2004

Open Positions

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

Resources Connection, Inc. RECN 12/23/04 $52.09 $53.10 0.0 +1.9%

MPS Group, Inc. MPS 12/23/04 $12.28 $12.31 0.0 +0.2%

Garmin Ltd. GRMN 12/23/04 $59.98 $60.86 0.0 +1.5%

DHB Industries Inc. DHB 12/23/04 $21.67 $22.53 0.0 +4.0%

Lennar Corp. Cl A LEN 12/22/04 $55.58 $54.97 0.1 -1.1%

Insteel Industries Inc. IIIN 12/22/04 $19.29 $18.72 0.1 -3.0%

Nextel Partners Inc. NXTP 12/21/04 $19.08 $19.44 0.3 +1.9%

Infocrossing Inc. IFOX 12/21/04 $17.45 $17.20 0.3 -1.4%

Aleris International Inc. ARS 12/20/04 $14.69 $17.03 0.4 +16.0%

Armor Holdings Inc. AH 12/17/04 $46.40 $48.39 0.9 +4.3%

Sirenza Microdevices SMDI 12/16/04 $5.91 $6.57 1.0 +11.2%

Olympic Steel Inc. ZEUS 12/15/04 $23.95 $27.67 1.1 +15.5%

IXYS Corp. SYXI 12/15/04 $10.15 $10.05 1.1 -1.0%

Standard Pacific Corp. SPF 12/14/04 $61.78 $62.52 1.3 +1.2%

Rofin-Sinar Tech Inc. RSTI 12/13/04 $38.28 $41.09 1.4 +7.3%
Average 0.5 +3.9%

* 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)

Intervoice-Brite Inc. INTV 12/22/04 $13.96 12/23/04 $13.74 0.1 -1.6%

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%
Average 3.8 +2.9%

* 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.

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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