Please read carefully our disclaimers at the end of this newsletter. Market Stance: BULLISH (since October 31, 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.
* The "Net buy price" is the total net purchase cost after commissions for all managed accounts divided by the total number of shares. Today, Friday, November 4, 2005, I bought PWEI, first for client accounts, then for my personal accounts. PW Eagle, Inc. manufactures and distributes polyvinyl chloride pipe and polythylene pipe. PW's products are used for water and sewage transmission, irrigation, natural gas transmission, commercial and industrial plumbing, and as conduit for fiber optics, and electrical and telecommunication cables. The Company distributed to the western United States and selected foreign countries. Here's why I bought this stock: + News: Yesterday, after the close, the company announced results for the quarter ended Sep 30. Earnings came in at 30c per diluted share (vs a loss of 3c last year; consensus not available). Revenue was up 49% to $76.1 million (consensus not available). + Breakout: Technically, the stock broke out, just by a few cents, from a 3-month trading range to a multi-year high. Today, the stock is up again, and this time it's huge. The stock is up some 25% or so today and volume is more than 17x average. + Excellent recent sales growth: Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +61%, +34%, +37%, and, most recently, as cited above, +49% to $176.2 million. + Recent turnaround in earnings-per-share: Here are the quarterly EPS figures for the last eight quarters: Dec 04 vs Dec 03: (16c) vs (85c) Mar 05 vs Mar 04: (27c) vs (56c) Jun 05 vs Jun 04: 23c vs 31c Sep 05 vs Sep 04: 30c vs (3c) NOTE: I could find no earnings estimate / earnings surprise data on this stock. + Valuation: At 17 times next year's estimated earnings, the stock is attractively priced. + The company's industry group ("Chemicals - Plastics") is ranked #164 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, November 4, 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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||