The Deen's ListTM
A service of Deen Capital Management, Inc. (www.deencapital.com)
Vol.3 #299 Saturday, December 31, 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 December 30, 2005

Deen Capital+5.1%*
S&P 500+3.0%

* 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: BULLISH (since October 31, 2005)

2005 is now history. It's been a year of rough sledding, but, in the end, most Deen Capital accounts are up modestly, outperforming all three of the major U.S. market averages, which were little changed.

The last two months of 2005 were particularly rewarding, as the market was in rally mode and Deen Capital accounts handily outperformed.

One of the factors holding back the markets in 2005 was the Fed. They raised interest rates at every single meeting. Most pundits expect perhaps one or two more hikes in the first quarter of '06, then no more. The end of rate hikes, if the economy remains strong, should be a significant positive for stocks going in 2006.

Right now, however, the market's near-term direction is highly uncertain. My three primary technical indicators remain overall neutral, with the direction of change continuing to be in the negative direction.

I increased our cash position significantly at the beginning of last week, and, as a result, Deen Capital managed accounts are now significantly less volatile, less at risk, than the S&P 500.

As you know, I try to outperform in up markets by being aggressive (high risk), and I also try to outperform in down markets by being conservative (low risk via high levels of cash).

Last week, I moved us to a low-risk posture, but really, I am in a wait-and-see mode. I'm waiting for my technical indicators to tip one way or the other.

Happy New Year to all!

-KD, December 31, 2005

  Open Positions

Company Name Stock
Symbol
Buy
Date
NetBuy
Price*
Current
Price
Weeks
Held
Gain
(Loss)
Quidel Corp.QDEL12/29/05$11.99$10.760.1-10.3%
Western Digital Corp.WDC12/21/05$18.14$18.611.3+2.6%
Pantry, Inc. (The)PTRY12/06/05$47.96$46.993.4-2.0%
Intevac, Inc.IVAC11/01/05$11.36$13.208.4+16.2%
WESCO International, Inc.WCC10/31/05$40.02$42.738.6+6.8%
ICU Medical, Inc.ICUI10/19/05$32.75$39.2110.3+19.7%
Average5.4+5.5%

* 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)
Oxford Industries, Inc.OXM10/24/05$52.5612/27/05$53.619.1+2.0%
Encore Wire Corp.WIRE10/25/05$22.1412/27/05$23.219.0+4.8%
Thomas & Betts Corp.TNB10/26/05$37.9712/27/05$41.788.9+10.1%
Multi-Fineline Electronix,MFLX11/07/05$34.1612/27/05$39.167.1+14.6%
Air Methods Corp.AIRM11/11/05$14.1912/27/05$16.736.6+17.9%
Dress Barn, Inc. (The)DBRN11/30/05$34.3912/27/05$35.733.9+3.9%
Cohu, Inc.COHU10/21/05$23.7112/21/05$23.178.7-2.3%
Black Box Corp.BBOX11/04/05$43.9412/15/05$47.955.9+9.1%
LoJack Corp.LOJN11/03/05$23.8312/14/05$25.135.9+5.4%
PW Eagle Inc.PWEI11/04/05$11.0812/14/05$20.825.7+87.8%
Standard Microsystems Corp.SMSC10/20/05$28.3012/13/05$32.737.7+15.6%
PortalPlayer Inc.PLAY11/11/05$24.2312/13/05$26.754.6+10.4%
Citrix Systems, Inc.CTXS10/20/05$26.3512/07/05$27.166.9+3.1%
LCA Vision Inc.LCAV10/31/05$42.3412/07/05$46.875.3+10.7%
RADVision Ltd.RVSN11/01/05$15.2512/07/05$16.955.1+11.1%
American Science & Eng'g IncASEI11/09/05$69.7712/07/05$66.794.0-4.3%
Radiant Systems, Inc.RADS11/21/05$13.1112/07/05$12.542.3-4.4%
United Therapeutics Corp.UTHR10/31/05$72.0712/02/05$71.604.6-0.7%
Orckit Communications, LtdORCT10/31/05$21.3811/21/05$19.583.0-8.4%
Biovail Corp.BVF09/09/05$22.2411/09/05$25.178.7+13.2%
Tiffany & Co.TIF08/31/05$37.4011/08/05$40.859.9+9.2%
NVIDIA Corp.NVDA08/30/05$30.0110/28/05$31.158.4+3.8%
Comtech Telecomm. Corp.CMTL09/22/05$40.7310/28/05$38.085.1-6.5%
Ventiv Health, Inc.VTIV09/20/05$26.4410/27/05$24.555.3-7.1%
The Sportsman's Guide, Inc.SGDE07/19/05$21.4210/12/05$23.4212.1+9.3%
Powerwave Technologies, Inc.PWAV09/15/05$12.3310/12/05$11.343.9-8.1%
Getty Images, Inc.GYI07/27/05$79.7810/06/05$80.0910.1+0.4%
Tidewater Inc.TDW08/31/05$45.0510/06/05$44.935.1-0.3%
PetMed Express, Inc.PETS09/01/05$10.4710/06/05$10.575.0+0.9%
Petrohawk Energy Corp.HAWK09/19/05$13.6510/06/05$12.482.4-8.6%
Unit Corp.UNT09/29/05$56.0010/06/05$48.611.0-13.2%
Quanex Corp.NX09/29/05$65.6410/06/05$60.211.0-8.3%
Amgen Inc.AMGN07/21/05$80.0010/05/05$78.9310.9-1.3%
Average6.2+5.2%

* 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 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.

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  Privacy Policy

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.

  Disclaimers

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
Deen Capital Management, Inc.
PO Box 30925
Santa Barbara, CA 93130
(805) 682-1870
deenslist@deencapital.com

Copyright © 2005 Deen Capital Management, Inc.