The Deen's List Vol.4 #218

The Deen's List^TM

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

Vol.4 #218 Saturday, October 21, 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 20, 2006
Deen Capital	+13.1%	*
S&P 500	+11.2%

* 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)

It was a mixed week for stocks, with the Dow and the S&P 500 up slightly (+0.3% and +0.2%), but with the NASDAQ down -0.6%. Deen Capital accounts were down just slightly (-0.2%).

We are up slightly for the month, and outperforming on a year-to-date basis. This is good, but I am frankly surprised that we haven't had better results in recent weeks. Market conditions are excellent, and, assuming this remains the case, I would expect to start seeing stronger results very soon.

Benign inflation data (including new PPI and CPI numbers released last week), falling oil prices, solid corporate earnings growth, and modest valuations all add up to a sweet spot for investors. My indicators have been unanimously bullish now for three weeks straight.

My Three Primary Technical Indicators:

                                       Prior week             Now
                                       ----------           -------
NASDAQ Timing Model (Ver.10q):           BULLISH            BULLISH (1)
Last signal:  BULLISH on Jul 28, 2006

Performance of Recent Stock Picks:  +5.7 BULLISH       +6.7 BULLISH (2)

Market Internals:                    80% BULLISH        79% BULLISH (3)

Overall Rating:                          BULLISH            BULLISH

Stocks:Cash ratio (Ken's IRA):            76:24              73:27

(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 21, 2006

Open Positions

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

Google Inc. GOOG 10/20/06 $456.24 $459.67 0.0 +0.8%

21st Century Holding Co. TCHC 10/19/06 $22.72 $24.61 0.1 +8.3%

Illumina, Inc. ILMN 10/18/06 $43.52 $43.60 0.3 +0.2%

EZCORP, Inc. EZPW 10/13/06 $42.47 $42.81 1.0 +0.8%

Rogers Corp. ROG 10/10/06 $69.65 $69.03 1.4 -0.9%

Interactive Intelligence Inc ININ 10/06/06 $15.34 $15.83 2.0 +3.2%

Research in Motion RIMM 10/05/06 $110.28 $110.00 2.1 -0.3%

Oracle Corp. ORCL 10/04/06 $18.16 $18.98 2.3 +4.5%

AZZ Inc. AZZ 09/29/06 $36.93 $38.17 3.0 +3.4%

Park Electrochemical Corp. PKE 09/20/06 $31.18 $31.85 4.3 +2.2%

Watson Wyatt & Co. Holdings WW 08/10/06 $35.03 $43.22 10.1 +23.4%
Average 2.4 +4.1%

* 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)

PeopleSupport, Inc. PSPT 08/01/06 $14.94 10/20/06 $18.85 11.4 +26.2%

Macrovision Corp. MVSN 08/18/06 $23.14 10/20/06 $26.11 9.0 +12.8%

II-VI Inc. IIVI 09/15/06 $25.03 10/19/06 $24.44 4.9 -2.3%

Copart, Inc. CPRT 10/06/06 $29.33 10/19/06 $28.49 1.9 -2.9%

IDEXX Laboratories, Inc. IDXX 07/28/06 $86.56 10/13/06 $94.33 11.0 +9.0%

Wellcare Group WCG 08/03/06 $51.71 10/12/06 $58.29 10.0 +12.7%

First Marblehead Corp. FMD 09/15/06 $60.21 10/11/06 $68.31 3.7 +13.5%

Shire Pharma Group plc SHPGY 10/09/06 $57.22 10/10/06 $52.80 0.1 -7.7%

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%
Average 4.3 +0.3%

* 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