Please read carefully our disclaimers at the end of this newsletter. Market Stance: BULLISH (since November 8, 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 Cisco Systems, Inc. (CSCO)
* The "Net buy price" is the total net purchase cost after commissions for all managed accounts divided by the total number of shares. Today, Wednesday, November 15, 2006, I bought CSCO, first for client accounts, then for my personal accounts. Cisco Systems, Inc. supplies data networking products for the Internet. The Company's Internet Protocol-based networking solutions are installed at corporations, public institutions and telecommunication companies worldwide. This stock is a component of the S&P 500, the S&P 100, and the NASDAQ 100 Indices. Here's why I bought this stock: + Breakout: The stock has recently broken out to a two-and-a-half year high, and is close to breaking out to a five-and-a-half year high. The price and volume spiked last week in response to a positive earnings surprise. + Excellent and accelerating recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +9%, +18%, +21%, and, most recently, for the quarter ended Oct 31, +25% to $8.18 billion. + Excellent recent earnings-per-share growth. Here are the quarterly EPS figures for the last eight quarters: Jan 06 vs Jan 05: 26c vs 22c Apr 06 vs Apr 05: 29c vs 23c Jul 06 vs Jul 05: 30c vs 25c Oct 06 vs Oct 05: 31c vs 25c + Rising earnings-per-share estimates: According to recent data from First Call, the consensus earnings estimate for FY 07 (Jul) is $1.29, revised upward from $1.26 90 days ago (and up from FY 06 actual earnings of $1.10); and the consensus estimate for FY 08 is $1.52, revised upward from $1.47 90 days ago. + Valuation: At 18 times next year's estimated earnings and a projected 5-year annualized earnings growth rate of 15%, 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 four quarters, including the quarter ended Oct 31, reported last week, which was 2c above. + The company's industry group ("Computer Networking") is ranked #3 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 15, 2006 Sold Republic Airways Holdings (RJET) -4.6% (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. I sold this stock because it was poised to close below my hard stop-loss price, which I had set at $17.40. -KD, November 15, 2006
* Net buy prices shown are the total net purchase cost after commissions for all managed accounts divided by the total number of shares. 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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||