The Deen's ListTM
A service of Deen Capital Management, Inc. (www.deencapital.com)
Vol.4 #251 Saturday, November 25, 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 November 24, 2006

Deen Capital+16.7%*
S&P 500+14.0%

* 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 November 8, 2006)

This was a particularly satisfying week for Deen Capital clients, who enjoyed solid gains in the face of a soft market. In spite of this softness, the market remains in excellent health.

I mentioned a number of factors working in favor of stocks last week in this space. One factor I neglected to mention is the falling price of oil. Oil was up just slightly last week (from $58.97 to $59.24 a barrel), but the trend has been clearly down since a peak of $77.95 on July 13. July was the turning point. Oil peaked and began a strong downtrend, while stocks bottomed and begin a strong uptrend.

One has to wonder how much longer this favorable trend will last. Here is where I look to my technical market indicators for early warnings of a change of trend.

As I wrote last week: "I think further gains are likely as 2006 heads into the home stretch. I will continue to exploit this healthy market until I perceive early signs of a top." Right now, there is no such sign.

My Three Primary Technical Indicators:

                                       Prior week             Now
                                       ----------           -------
NASDAQ Timing Model (Ver.10q):           BULLISH            BULLISH (1)
Last signal:  BULLISH on Nov 8, 2006

Performance of Recent Stock Picks:  +8.1 BULLISH       +7.1 BULLISH (2)

Market Internals:                    77% BULLISH        76% BULLISH (3)

Overall Rating:                          BULLISH            BULLISH

Stocks:Cash ratio (Ken's IRA):            65:35              76:24

(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, November 25, 2006

  Open Positions

Company Name Stock
Symbol
Buy
Date
NetBuy
Price*
Current
Price
Weeks
Held
Gain
(Loss)
The9 LimitedNCTY11/22/06$27.58$27.750.3+0.6%
Metretek Technologies, Inc.MEK11/22/06$14.33$14.420.3+0.6%
Zoll Medical Corp.ZOLL11/21/06$51.05$52.060.4+2.0%
Watts Water Technologies IncWTS11/17/06$41.68$42.551.0+2.1%
Cisco Systems, Inc.CSCO11/15/06$26.62$26.841.3+0.8%
Ultra Clean Holdings, Inc.UCTT11/13/06$13.16$14.031.6+6.6%
Dolby LaboratoriesDLB11/10/06$26.70$28.542.0+6.9%
Emerson Electric Co.EMR11/08/06$87.17$89.002.3+2.1%
AMREP Corp.AXR11/07/06$68.47$84.762.4+23.8%
Apple Computer, Inc.AAPL10/25/06$81.55$91.634.3+12.4%
Google Inc.GOOG10/20/06$456.24$505.005.0+10.7%
Research in MotionRIMM10/05/06$110.28$141.567.1+28.4%
Average2.3+8.1%

* 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)
Metretek Technologies, Inc.MEK11/07/06$14.5811/21/06$13.042.0-10.6%
Comtech Group, Inc.COGO10/31/06$16.7111/16/06$15.632.3-6.5%
Republic Airways HoldingsRJET11/07/06$17.9911/15/06$17.161.1-4.6%
GigaMediaGIGM11/09/06$11.1911/09/06$10.090.0-9.8%
Buffalo Wild Wings, Inc.BWLD10/25/06$49.9911/03/06$50.881.3+1.8%
AZZ Inc.AZZ09/29/06$36.9311/02/06$34.734.9-5.9%
Oracle Corp.ORCL10/04/06$18.1611/02/06$18.204.1+0.3%
EZCORP, Inc.EZPW10/13/06$42.4711/02/06$41.742.9-1.7%
Illumina, Inc.ILMN10/18/06$43.5211/02/06$42.092.1-3.3%
Ultra Clean Holdings, Inc.UCTT10/24/06$12.9011/02/06$12.551.3-2.7%
Interactive Intelligence IncININ10/06/06$15.3411/01/06$16.563.7+8.0%
21st Century Holding Co.TCHC10/19/06$22.7211/01/06$26.681.9+17.4%
Skechers U.S.A., Inc.SKX10/26/06$30.6211/01/06$28.630.9-6.5%
NETGEAR, Inc.NTGR10/30/06$27.2311/01/06$26.200.3-3.8%
Rogers Corp.ROG10/10/06$69.6510/30/06$68.562.9-1.6%
Watson Wyatt & Co. HoldingsWW08/10/06$35.0310/27/06$44.6511.1+27.5%
Park Electrochemical Corp.PKE09/20/06$31.1810/27/06$30.915.3-0.9%
PeopleSupport, Inc.PSPT08/01/06$14.9410/20/06$18.8511.4+26.2%
Macrovision Corp.MVSN08/18/06$23.1410/20/06$26.119.0+12.8%
II-VI Inc.IIVI09/15/06$25.0310/19/06$24.444.9-2.3%
Copart, Inc.CPRT10/06/06$29.3310/19/06$28.491.9-2.9%
IDEXX Laboratories, Inc.IDXX07/28/06$86.5610/13/06$94.3311.0+9.0%
Wellcare GroupWCG08/03/06$51.7110/12/06$58.2910.0+12.7%
First Marblehead Corp.FMD09/15/06$60.2110/11/06$68.313.7+13.5%
Shire Pharma Group plcSHPGY10/09/06$57.2210/10/06$52.800.1-7.7%
Diodes Inc.DIOD09/14/06$43.9210/05/06$41.733.0-5.0%
Ultra Clean Holdings, Inc.UCTT09/20/06$11.0910/03/06$9.821.9-11.4%
Psychiatric Solutions, Inc.PSYS09/12/06$35.6010/02/06$33.362.9-6.3%
U.S. Global Investors, Inc.GROW09/07/06$27.8409/29/06$24.613.1-11.6%
Merix Corp.MERX09/21/06$13.8709/26/06$10.410.7-24.9%
ICON plcICLR07/26/06$62.5909/19/06$67.027.9+7.1%
FormFactor, Inc.FORM07/28/06$42.8709/19/06$46.187.6+7.7%
Integrated Device Tech, Inc.IDTI08/02/06$15.2909/15/06$15.946.3+4.3%
ValueClick, Inc.VCLK08/07/06$16.9909/15/06$17.455.6+2.7%
Internat'l Assets Holding CpIAAC09/13/06$23.1109/15/06$20.540.3-11.1%
Anixter International Inc.AXE07/25/06$50.6509/11/06$54.396.9+7.4%
Technitrol, Inc.TNL07/31/06$24.6609/11/06$27.056.0+9.7%
Encore Wire Corp.WIRE08/03/06$34.8509/11/06$34.565.6-0.8%
Nu Horizons Electronics CorpNUHC08/15/06$11.4609/11/06$11.943.9+4.2%
Digital River, Inc.DRIV08/16/06$47.1609/11/06$47.463.7+0.6%
Ansoft Corp.ANST08/28/06$24.3809/11/06$23.552.0-3.4%
The Exploration Co of DETXCO08/22/06$12.8808/29/06$11.861.0-7.9%
Average4.0+0.5%

* 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

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.

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  Disclaimers

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.

  Contact Us

The Deen's List
PO Box 30925
Santa Barbara, CA 93130
(805) 682-1870
deenslist@deencapital.com

Copyright © 2006 Deen Capital Management, Inc.