The Deen's List Vol.4 #205

The Deen's List^TM

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

Vol.4 #205 Friday, October 6, 2006

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
Contact Us

Year-To-Date Performance

Year-To-Date as of October 6, 2006
Deen Capital	+13.6%	*
S&P 500	+9.6%

* 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 July 28, 2006)

The Dow closed at an all-time record high on Tuesday, the first time since January, 2000. The very next day, the market celebrates with a powerful high-volume up day.

My three technical indicators (below) are now unanimously bullish. I'm not going to argue with that, so I increased our exposure to stocks.

We kept up with the S&P 500 last week, with managed accounts posting a roughly 1% gain. On a year-to-date and trailing 12-month basis, we are still handily outperforming.

I think market conditions are excellent here. Let's make the most of it.

My Three Primary Technical Indicators:

                                       Prior week             Now
                                       ----------           -------
NASDAQ Timing Model (Ver.10q):           BULLISH            BULLISH (1)

Performance of Recent Stock Picks:    +1.7 BEARISH     +5.8 BULLISH (2)

Market Internals:                      +69 NEUTRAL      +72 BULLISH (3)

Overall Rating:                          NEUTRAL            BULLISH

(1) A proprietary computer model based on technical analysis of the NASDAQ Composite. Last signal: BULLISH on Jul 28, 2006.

(2) This number (from -10 to +10) is based on the performance of ALL my stock picks (I actually buy only some of these). A positive number means my stock picks are generally rising; a negative number means they are generally falling. Even so, I consider a reading below +3.1 to be bearish. I require a reading of +5.6 or better to call this indicator bullish.

(3) This is the percentage of stocks ($8 and up) which are trading above their 50-day moving average. The rating of this percentage (bullish, bearish or neutral) is based on which way it's been moving recently -- up, down or sideways.

-KD, October 6, 2006

Open Positions

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

Interactive Intelligence Inc ININ 10/06/06 $15.34 $15.23 0.0 -0.7%

Copart, Inc. CPRT 10/06/06 $29.33 $28.89 0.0 -1.5%

Research in Motion RIMM 10/05/06 $110.28 $108.79 0.1 -1.3%

Oracle Corp. ORCL 10/04/06 $18.16 $18.19 0.3 +0.2%

AZZ Inc. AZZ 09/29/06 $36.93 $36.84 1.0 -0.2%

Park Electrochemical Corp. PKE 09/20/06 $31.18 $31.80 2.3 +2.0%

II-VI Inc. IIVI 09/15/06 $25.03 $26.39 3.0 +5.5%

First Marblehead Corp. FMD 09/15/06 $60.21 $69.99 3.0 +16.2%

Macrovision Corp. MVSN 08/18/06 $23.14 $26.45 7.0 +14.3%

Watson Wyatt & Co. Holdings WW 08/10/06 $35.03 $41.50 8.1 +18.5%

Wellcare Group WCG 08/03/06 $51.71 $59.65 9.1 +15.4%

PeopleSupport, Inc. PSPT 08/01/06 $14.94 $19.42 9.4 +30.0%

IDEXX Laboratories, Inc. IDXX 07/28/06 $86.56 $93.73 10.0 +8.3%
Average 4.1 +8.2%

* 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)

Diodes Inc. DIOD 09/14/06 $43.92 10/05/06 $41.73 3.0 -5.0%

Ultra Clean Holdings, Inc. UCTT 09/20/06 $11.09 10/03/06 $9.82 1.9 -11.4%

Psychiatric Solutions, Inc. PSYS 09/12/06 $35.60 10/02/06 $33.36 2.9 -6.3%

U.S. Global Investors, Inc. GROW 09/07/06 $27.84 09/29/06 $24.61 3.1 -11.6%

Merix Corp. MERX 09/21/06 $13.87 09/26/06 $10.41 0.7 -24.9%

ICON plc ICLR 07/26/06 $62.59 09/19/06 $67.02 7.9 +7.1%

FormFactor, Inc. FORM 07/28/06 $42.87 09/19/06 $46.18 7.6 +7.7%

Integrated Device Tech, Inc. IDTI 08/02/06 $15.29 09/15/06 $15.94 6.3 +4.3%

ValueClick, Inc. VCLK 08/07/06 $16.99 09/15/06 $17.45 5.6 +2.7%

Internat'l Assets Holding Cp IAAC 09/13/06 $23.11 09/15/06 $20.54 0.3 -11.1%

Anixter International Inc. AXE 07/25/06 $50.65 09/11/06 $54.39 6.9 +7.4%

Technitrol, Inc. TNL 07/31/06 $24.66 09/11/06 $27.05 6.0 +9.7%

Encore Wire Corp. WIRE 08/03/06 $34.85 09/11/06 $34.56 5.6 -0.8%

Nu Horizons Electronics Corp NUHC 08/15/06 $11.46 09/11/06 $11.94 3.9 +4.2%

Digital River, Inc. DRIV 08/16/06 $47.16 09/11/06 $47.46 3.7 +0.6%

Ansoft Corp. ANST 08/28/06 $24.38 09/11/06 $23.55 2.0 -3.4%

The Exploration Co of DE TXCO 08/22/06 $12.88 08/29/06 $11.86 1.0 -7.9%

Allscripts Healthcare Sltn MDRX 08/02/06 $21.86 08/25/06 $19.77 3.3 -9.5%

Digene Corp. DIGE 08/09/06 $45.06 08/23/06 $42.48 2.0 -5.7%

Core Laboratories N.V. CLB 08/04/06 $71.40 08/14/06 $66.70 1.4 -6.6%

Illumina, Inc. ILMN 07/19/06 $37.20 08/11/06 $34.08 3.3 -8.4%

Nu Horizons Electronics Corp NUHC 07/19/06 $10.47 08/08/06 $10.82 2.9 +3.3%

Apple Computer, Inc. AAPL 07/24/06 $61.51 08/04/06 $66.68 1.6 +8.4%

Merix Corp. MERX 06/29/06 $10.40 07/27/06 $10.36 4.0 -0.4%

Cephalon, Inc. CEPH 06/30/06 $60.44 07/27/06 $64.08 3.9 +6.0%

Huron Consulting Group Inc. HURN 06/21/06 $31.60 07/21/06 $33.23 4.3 +5.2%

Focus Media Holding FMCN 06/16/06 $60.93 07/14/06 $61.88 4.0 +1.6%

Bear Stearns Companies, Inc. BSC 06/16/06 $131.97 07/14/06 $132.40 4.0 +0.3%

America Movil, S.A. de C.V. AMX 06/16/06 $29.80 07/14/06 $31.26 4.0 +4.9%

Old Dominion Freight Line ODFL 06/26/06 $35.66 07/13/06 $33.51 2.4 -6.0%

Zevex International, Inc. ZVXI 07/06/06 $19.17 07/12/06 $16.29 0.9 -15.0%

Nu Horizons Electronics Corp NUHC 07/07/06 $9.93 07/12/06 $10.11 0.7 +1.8%

Hittite Microwave Corp. HITT 07/03/06 $42.16 07/10/06 $36.62 1.0 -13.1%
Average 3.4 -2.2%

* 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

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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