Please read carefully our disclaimers at the end of this newsletter. Weekly Status Report: 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. Market Stance: BULLISH (since October 31, 2005)Last week, again, the market was up, and Deen Capital accounts were up more. The market is clearly in rally mode, and we are aggressively positioned to profit from it. A number of positive developments all point to a strong environment for stocks: + The S&P and the NASDAQ broke out last week to new multi-year highs on increasing volume. + Growth stocks, and the NASDAQ, are leading this rally. This is the best type of leadership for my style of investing. + My three primary technical indicators continue to be solidly and unanimously bullish. + The price of oil continues to fall. Crude oil futures contracts reached a 5-month low last week. + We are seeing signs that the housing market is starting to cool off, as mortgage rates creep up. In my view, this is good news for stocks. Ever since the Internet bubble burst in early 2000, real estate has been perceived (correctly so) as a much more attractive investment than stocks. That may be just now starting to change. The pendulum has just started to swing in the other direction. If I am right about this, we could be seeing the start of a new multi-year uptrend for stocks -- and our account values. There are also reasons to worry, most notably the rising price of gold, which soared to an 18-year high last week. Rising gold prices are usually associated with rising inflation and a bear market in stocks. But the balance of evidence at hand, including the factors I consider most important, is overwhelmingly bullish. As always, I may change my market stance at any time as I re-evaluate market conditions daily. But I do think there is plenty of upside potential left in this rally. -KD, November 18, 2005
* 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
* 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. 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||