The Deen's ListTM
A service of Deen Capital Management, Inc. (www.deencapital.com)
Vol.4 #259 Saturday, December 9, 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 December 8, 2006

Deen Capital+21.2%*
S&P 500+14.8%

* 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)

Deen Capital accounts outperformed the market last week in spectacular fashion. The major market averages were up about 1.0%, while Deen Capital accounts were up more than 4%. Wow!

And this in spite of the fact that two out of three of my technical indicators have been bearish now for two weeks running. Normally, I would retreat to mostly cash under this circumstance. This time is different, because my stock picks have been performing so spectacularly well. My sole bullish indicator is the one which measures the performance of my stock picks (including some that I "buy" only on paper). It has been extremely strong recently. Last week, it improved still further. It now stands at a rarely seen near-perfect +9.0 (scale -10 to +10). Anything above +5.5 is bullish.

Bottom line: Our stocks are clearly going up, we are clearly making money, so I continue to milk this rally for all its worth. However, the market is very fickle, and we are now way out on a limb. I am prepared to retreat to cash quickly if my stocks begin to falter.

My Three Primary Technical Indicators:

                                       Prior week             Now
                                       ----------           -------
NASDAQ Timing Model (Ver.10q):           BEARISH            BEARISH (1)
Last signal:  BEARISH on Nov 27, 2006

Performance of Recent Stock Picks:   +8.0 BULLISH        +9.0 BULLISH (2)

Market Internals:                    69% BEARISH        72% BEARISH (3)

-----------------------------------------------------------------------
Overall Rating:                          BEARISH            BEARISH

Stocks:Cash ratio (Ken's IRA):            89:11              100:0

(1) A proprietary computer model based on technical analysis of the NASDAQ Composite.

(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, December 9, 2006

  Open Positions

Company Name Stock
Symbol
Buy
Date
NetBuy
Price*
Current
Price
Weeks
Held
Gain
(Loss)
Gulf Island Fabrication Inc.GIFI12/06/06$39.06$39.400.3+0.9%
SimpleTech Inc.STEC12/04/06$10.30$10.240.6-0.6%
DSW Inc.DSW11/30/06$38.12$38.011.1-0.3%
Dress Barn, Inc.DBRN11/30/06$24.12$23.981.1-0.6%
Allegheny Technologies Inc.ATI11/30/06$88.64$98.201.1+10.8%
Allis-Chalmers Corp.ALY11/28/06$18.02$24.321.4+35.0%
The9 LimitedNCTY11/22/06$27.58$29.752.3+7.9%
Metretek Technologies, Inc.MEK11/22/06$14.33$14.352.3+0.2%
Zoll Medical Corp.ZOLL11/21/06$51.05$54.122.4+6.0%
Watts Water Technologies IncWTS11/17/06$41.68$42.723.0+2.5%
Cisco Systems, Inc.CSCO11/15/06$26.62$26.983.3+1.4%
Ultra Clean Holdings, Inc.UCTT11/13/06$13.16$13.173.6+0.1%
Dolby LaboratoriesDLB11/10/06$26.70$30.784.0+15.3%
Emerson Electric Co.EMR11/08/06$87.17$86.114.3-1.2%
AMREP Corp.AXR11/07/06$68.47$103.014.4+50.4%
Apple Computer, Inc.AAPL10/25/06$81.55$88.266.3+8.2%
Google Inc.GOOG10/20/06$456.24$484.117.0+6.1%
Average2.9+8.4%

* 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)
Research in MotionRIMM10/05/06$110.2811/27/06$135.827.6+23.2%
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%
Average4.2+1.2%

* 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

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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  Privacy Policy

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.

  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.