Please read carefully our disclaimers at the end of this newsletter. Market Stance: BULLISH (since September 6, 2005)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 Powerwave Technologies (PWAV)
* 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, September 15, 2005, I bought PWAV, first for client accounts, then for my personal accounts. Powerwave Technologies, Inc. designs, manufactures, and markets wireless communications products. The Company's products including antennas, boosters, combiners, filters, radio frequency power amplifiers, repeaters, tower-mounted amplifiers, and advanced coverage solutions. Powerwave also operates a contract manufacturing business under the trade name of Arkivator. This stock is a component of the S&P 400 MidCap Index. Here's why I bought this stock: + Breakout: Two days ago, on Tue Sep 13, the stock made a clean and decisive breakout from a seven-week trading range on very heavy volume. + Also on Tue Sep 13, the stock met the stringent technical buy criteria outlined in my Research Update of June 26, 2004: http://www.deencapital.com/newslett/2004/040626.129.html#3 . + Excellent recent sales growth: Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +119%, +116%, +157%, and, most recently, for the quarter ended June 30, +61% to $186.3 million. + Excellent recent earnings-per-share growth: Here are the quarterly EPS figures for the last eight quarters: Sep 04 vs Sep 03: 5c vs (8c) Dec 04 vs Dec 03: 7c vs (2c) Mar 05 vs Mar 04: 8c vs (5c) Jun 05 vs Jun 04: 14c vs (2c) + Rising earnings-per-share estimates: According to recent data from First Call, the consensus earnings estimate for 2005 is 48c, revised upward from 42c 90 days ago (and up from 2004 actual earnings of 10c); and the consensus estimate for 2006 is 60c, revised upward from 51c 90 days ago. + Valuation: At 20 times next year's estimated earnings and a projected 5-year annualized earnings growth rate of 11%, the stock is reasonably priced. Next year's earnings-per-share are expected to grow by 25%. + History of earnings surprises: This company has reported earnings at least a penny ahead of estimates in three of the past four quarters, and 4c ahead in the most recently reported quarter ended June 30. + The company's industry group ("Telecommunications - Wireless Equipment") is ranked #50 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. + The stock's 200-day moving average is rising, indicating a long-term uptrend. -KD, September 15, 2005
* 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 © 2005 Deen Capital Management, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||