Please read carefully our disclaimers at the end of this newsletter. Market Stance: BEARISH (since November 1, 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.
* The "Net buy price" is the total net purchase cost after commissions for all managed accounts divided by the total number of shares. Today, Tuesday, November 7, 2006, I bought AXR, first for client accounts, then for my personal accounts. AMREP Corp. builds affordable housing and develops real estate. The Company has operations primarily in New Mexico, Colorado, Northern California, and Oregon. AMREP also, through a subsidiary, distributes magazines to wholesalers and provides subscription fulfillment and other services to publishers. This stock is a component of the IBD 100 Index. ("IBD" = "Investor's Business Daily") Here's why I bought this stock: + The NASDAQ is trading at a multi-year high today. If this holds, it will be a breakout from a 7-month trading range. This is not a convincing breakout yet, but the odds are improving that my bullish call of last week may have been just plain wrong. + Breakout? Third try: The stock is up sharply today on heavy volume. This is its third attempt in as many weeks to move decisively above the $64 mark, which corresponds roughly to highs set in mid-June. The first two attempts carried the stock as high as $71.60, but the price then fell back. Today's move is the most convincing yet because volume is the biggest yet. Three or four days from last month stand between the current price and a 10-year high. (Or maybe an all-time high; my data goes back 10 years.) + 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%, +13%, +32%, and, most recently, for the quarter ended Sep 30, +94% to $58.3 million. + Explosive and accelerating recent earnings-per-share growth. Here are the quarterly EPS figures for the last eight quarters: Dec 05 vs Dec 04: $0.76 vs $0.66 Mar 06 vs Mar 05: $0.79 vs $0.38 Jun 06 vs Jun 05: $1.56 vs $0.72 Sep 06 vs Sep 05: $2.38 vs $0.27 No estimates are available for this stock. + Valuation: At 12.5 times trailing 12-month earnings and a spectacular growth trajectory, the stock is very attractively price. (The official 5-year earnings growth rate is not available.) No earnings-surprise-history data is available for this stock. + The company's industry group ("Media - Periodicals") is ranked #4 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, November 7, 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. The Deen's List Copyright © 2006 Deen Capital Management, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||