The Deen's List Vol.3 #262

The Deen's List^TM

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

Vol.3 #262 Saturday, October 29, 2005

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 October 28, 2005
Deen Capital	-6.8%	*
S&P 500	-1.1%

* 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: BEARISH (since October 7, 2005)

This was an unusually volatile week, and a disappointing one for Deen Capital clients. The market averages posted gains by week's end, but our accounts posted a loss. This was largely due to the fact that small-cap stocks under-performed their large-cap brethren this week.

My technical indicators improved slightly from overall bearish to overall neutral:

* My NASDAQ Timing Model (Ver.10q) remains on its October 19 bullish signal.

* My Performance-of-Recent-Stock-Picks Index fell ever so slightly, and remains bearish.

* 36% of stocks $8 and up are now trading above their 50-day moving average, versus 30% a week ago. This is still low, but it is enough of an improvement to re-classify this indicator from bearish to neutral.

We do have seasonality working in our favor now, as the November through January time frame represents the best three month period for stocks, historically.

Also, rising interest rates, historically a bad thing for stocks, just might be a good thing this time around. Let me explain. Rising interest rates make bonds more attractive to investors, but they make real estate less attractive. Historically, bonds represented the primary competition to stocks for investor dollars. In recent years, however, real estate has been by far the investment of choice. The runaway boom in real estate has been, in my view, the number one reason that stocks have gone nowhere in recent years. People want to put their money where the action is, and that's real estate. Now, with mortgage rates on the rise and housing prices sky-high, real estate is becoming less and less attractive as an investment. Over the next several months and years, I expect to see the pendulum begin to swing the other way, away from real estate and towards stocks.

I remain nominally bearish, but close to turning bullish. This is a difficult-to-time see-saw market, so I have not been making big moves in either direction.

-KD, October 28, 2005

Open Positions

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

Thomas & Betts Corp. TNB 10/26/05 $37.97 $37.49 0.3 -1.3%

Encore Wire Corp. WIRE 10/25/05 $22.14 $21.28 0.4 -3.9%

Oxford Industries Inc. OXM 10/24/05 $52.56 $48.39 0.6 -7.9%

Cohu Inc. COHU 10/21/05 $23.71 $22.61 1.0 -4.6%

Standard Microsystems Corp. SMSC 10/20/05 $28.30 $27.51 1.1 -2.8%

Citrix Systems Inc. CTXS 10/20/05 $26.35 $26.70 1.1 +1.3%

ICU Medical Inc. ICUI 10/19/05 $32.75 $34.42 1.3 +5.1%

Biovail Corp. BVF 09/09/05 $22.24 $21.91 7.0 -1.5%

Tiffany & Co. TIF 08/31/05 $37.40 $38.35 8.3 +2.5%
Average 2.3 -1.4%

* 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)

NVIDIA Corp. NVDA 08/30/05 $30.01 10/28/05 $31.15 8.4 +3.8%

Comtech Telecomm. Corp. CMTL 09/22/05 $40.73 10/28/05 $38.08 5.1 -6.5%

Ventiv Health Inc. VTIV 09/20/05 $26.44 10/27/05 $24.55 5.3 -7.1%

The Sportsman's Guide, Inc. SGDE 07/19/05 $21.42 10/12/05 $23.42 12.1 +9.3%

Powerwave Technologies, Inc. PWAV 09/15/05 $12.33 10/12/05 $11.34 3.9 -8.1%

Getty Images Inc. GYI 07/27/05 $79.78 10/06/05 $80.09 10.1 +0.4%

Tidewater Inc. TDW 08/31/05 $45.05 10/06/05 $44.93 5.1 -0.3%

PetMed Express Inc. PETS 09/01/05 $10.47 10/06/05 $10.57 5.0 +0.9%

Petrohawk Energy Corp. HAWK 09/19/05 $13.65 10/06/05 $12.48 2.4 -8.6%

Unit Corp. UNT 09/29/05 $56.00 10/06/05 $48.61 1.0 -13.2%

Quanex Corp. NX 09/29/05 $65.64 10/06/05 $60.21 1.0 -8.3%

Amgen Inc. AMGN 07/21/05 $80.00 10/05/05 $78.93 10.9 -1.3%

Hologic Inc. HOLX 07/27/05 $43.79 09/21/05 $50.48 8.0 +15.3%

ZYGO Corp. ZIGO 08/26/05 $12.48 09/21/05 $13.90 3.7 +11.4%

Neoware Systems Inc. NWRE 09/02/05 $13.14 09/21/05 $15.08 2.7 +14.8%

Psychiatric Solutions Inc. PSYS 09/06/05 $49.51 09/21/05 $51.43 2.1 +3.9%

SFBC International Inc. SFCC 09/09/05 $44.48 09/21/05 $42.52 1.7 -4.4%

NetEase.com Inc. NTES 08/04/05 $74.35 09/20/05 $79.08 6.7 +6.4%

Martin Marietta Materials MLM 09/06/05 $73.08 09/20/05 $69.99 2.0 -4.2%

Seacor Holdings Inc. CKH 08/10/05 $70.36 09/16/05 $66.99 5.3 -4.8%

Genzyme Corp. GENZ 07/14/05 $65.45 08/25/05 $68.53 6.0 +4.7%

Forward Industries Inc. FORD 07/25/05 $23.66 08/24/05 $23.84 4.3 +0.8%

Lufkin Industries Inc. LUFK 07/11/05 $41.45 08/17/05 $43.12 5.3 +4.0%

Headwaters Inc. HW 08/12/05 $43.05 08/17/05 $39.00 0.7 -9.4%

Pioneer Natural Resources Co PXD 08/15/05 $45.25 08/17/05 $43.41 0.3 -4.1%

Cascade Corp. CAE 06/16/05 $42.82 08/11/05 $41.81 8.0 -2.4%

LKQ Corp. LKQX 05/17/05 $22.66 08/10/05 $27.91 12.1 +23.1%

Best Buy Co. Inc. BBY 06/14/05 $44.28 08/10/05 $49.22 8.1 +11.2%

Resources Connection, Inc. RECN 07/13/05 $29.61 08/10/05 $28.71 4.0 -3.0%

SI International SINT 07/26/05 $31.44 08/10/05 $30.31 2.1 -3.6%

Click Commerce Inc. CKCM 05/06/05 $15.30 08/09/05 $19.07 13.6 +24.6%

Aldila Inc. ALDA 08/02/05 $27.00 08/09/05 $25.55 1.0 -5.4%

Pharmaceutical Prod Dev PPDI 07/14/05 $57.93 08/08/05 $55.55 3.6 -4.1%

Robert Half International RHI 07/25/05 $33.82 08/08/05 $32.62 2.0 -3.5%

Genesis Microchip Inc. GNSS 07/25/05 $25.30 08/08/05 $24.02 2.0 -5.1%

Jabil Circuit Inc. JBL 06/28/05 $31.30 08/05/05 $30.45 5.4 -2.7%

American Home Mtg Inv Corp AHM 07/19/05 $38.40 08/05/05 $35.72 2.4 -7.0%

MicroStrategy Inc. MSTR 07/29/05 $79.11 08/05/05 $74.31 1.0 -6.1%

Quality Systems Inc. QSII 07/08/05 $52.32 08/03/05 $62.52 3.7 +19.5%

Stanley Works SWK 07/19/05 $50.78 08/01/05 $48.48 1.9 -4.5%
Average 4.8 +0.7%

* 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