Please read carefully our disclaimers at the end of this newsletter. Market Stance: BEARISH (since October 7, 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 Oxford Industries Inc. (OXM)
* The "Net buy price" is the total net purchase cost after commissions for all managed accounts divided by the total number of shares. Today, Monday, October 24, 2005, I bought OXM, first for client accounts, then for my personal accounts. Oxford Industries, Inc. is an international manufacturer and wholesale marketer of branded and private label apparel for men, women, and children. The Company provides licensed brands such as Nautica, Geoffrey Bean, and Oscar de la Renta. Oxford's private label customers include national chains, specialty catalogs, mass merchandisers, department stores, specialty stores, and Internet retailers. This stock is a component of the IBD 100 Index and the S&P SmallCap 600. Here's why I bought this stock: + Breakout: Today, the stock is breaking out of a two-and-a-half month trading range on heavy volume. + Excellent recent sales growth: Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +23%, +24%, +14%, and, most recently, for the quarter ended Aug 31, +27% to $336.5 million. + Excellent recent earnings-per-share growth: Here are the quarterly EPS figures for the last eight quarters: Dec 04 vs Dec 03: $0.53 vs $0.41 Mar 05 vs Mar 04: $0.80 vs $0.58 Jun 05 vs Jun 04: $1.17 vs $0.97 Sep 05 vs Sep 04: $0.79 vs $0.43 + Rising earnings-per-share estimates: According to recent data from First Call, the consensus earnings estimate for FY 06 (May) is $3.54, revised upward from $3.28 90 days ago (and up from FY 05 actual earnings of $2.94); and the consensus estimate for FY 07 is $4.06, revised upward from $3.79 90 days ago. + Valuation: At 13 times next year's estimated earnings and a projected 5-year annualized earnings growth rate of 15%, the stock is attractively priced. + History of earnings surprises: This company has reported earnings at least 6c ahead of estimates in each of the past four quarters (the most recent quarter ended Aug 31 came in 18c ahead). + The stock's 200-day moving average is rising, indicating a long-term uptrend. I chose to buy the stock in spite of the following negative factor: - The company's industry group ("Apparel - Clothing Mfg") is ranked #71 for relative strength out of 197 industry groups tracked by Investor's Business Daily. This ranking changes daily, and it has been generally falling over recent weeks and months. -KD, October 24, 2005
* Net buy prices shown are the total net purchase cost after commissions for all managed accounts divided by the total number of shares. 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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||