Please read carefully our disclaimers at the end of this newsletter. Market Stance: BULLISH (since March 17, 2006)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 AMN Healthcare Services Inc. (AHS)
* 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, May 5, 2006, I bought AHS, first for client accounts, then for my personal accounts. AMN Healthcare Services, Inc., a temporary healthcare staffing company, provides travel nurse staffing services. The Company places nurses and allied health professionals on temporary assignments at hospitals and healthcare facilities throughout the United States. Here's why I bought this stock: + News: On Monday, May 1, after the close, the company announced results for the quarter ended March 31. Earnings came in at 24c per diluted share (vs 24c last year and First Call 19c). Revenue was up 62% to $254.3 million (First Call $250.1 million). + Breakout: The price movement on Tuesday was a breakout from a two-year-plus trading range. On that day, the stock was up 7.7% on more than 6x average daily volume. + Excellent and accelerating recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +5%, +7%, +40%, and, most recently, as cited above, +62%. + Excellent recent earnings-per-share growth. Here are the quarterly EPS figures for the last eight quarters: Jun 05 vs Jun 04: 14c vs 14c Sep 05 vs Sep 04: 20c vs 13c Dec 05 vs Dec 04: 24c vs 14c Mar 06 vs Mar 05: 24c vs 13c ? Strong, but falling, earnings-per-share estimates: According to recent data from First Call, the consensus earnings estimate for 2006 is 82c, revised downward from 95c 90 days ago (but up from 2005 actual earnings of 72c); and the consensus estimate for 2007 is $1.02, revised downward from $1.20 90 days ago. + Valuation: At 21 times next year's estimated earnings and a projected 5-year annualized earnings growth rate of 16.5%, the stock is moderately priced. + History of earnings surprises: This company has reported earnings at least a penny above estimates in each of the past three quarters, including the just-reported quarter cited above, which was 5c above. + The company's industry group ("Commercial Services - Staffing") is ranked #87 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, May 5, 2006 Sold The9 Limited (NCTY) -6.6% (after commissions)
* The net buy (sell) price is the total net cost (proceeds) after commissions for all managed accounts divided by the total number of shares. This stock is having a particularly bad day, and I am anticipating a likely sell signal at the close today from my StockSell Program, Ver.13s. This program is based purely on technical considerations. -KD, May 5, 2006
* 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 © 2006 Deen Capital Management, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||