The Deen's List Vol.4 #267

The Deen's List^TM

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

Vol.4 #267 Monday, December 18, 2006 3:56PM ET

Please read carefully our disclaimers at the end of this newsletter.

Contents

Market Timing Alert: BEARISH
Year-To-Date Performance
Open Positions
Subscription Information
Privacy Policy
Disclaimers
Contact Us

Market Timing Alert: BEARISH

My Index which tracks the performance of my recent stock picks has fallen today from +5.5 (Friday's close) to +3.8 (as of about a half-hour before the close). +5.5 is neutral but very close to bullish, while +3.8 us neutral but very close to bearish.

My other two technical indicators turned bearish over a week ago. Net result: My indicators are almost unanimously bearish -- and falling. This looks like a very good time to reduce our risk profile. I smell elevated market risk here. This could spell trouble.

We've had a terrific year. I aim to keep it that way. Managed accounts are already about 60% cash thanks to my recent selling. I now am biased in favor of sitting on cash.

-KD, December 18, 2006

Year-To-Date Performance

Year-To-Date as of December 15, 2006
Deen Capital	+22.4%	*
S&P 500	+16.3%

* 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.

Open Positions

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

Palomar Med Tech PMTI 12/14/06 $53.23 $52.21 0.6 -1.9%

Gulf Island Fab GIFI 12/06/06 $39.06 $37.33 1.7 -4.4%

SimpleTech Inc. STEC 12/04/06 $10.30 $11.34 2.0 +10.1%

DSW Inc. DSW 11/30/06 $38.12 $38.27 2.6 +0.4%

Dress Barn The DBRN 11/30/06 $24.12 $23.54 2.6 -2.4%

Cisco Sys Inc. CSCO 11/15/06 $26.62 $27.69 4.7 +4.0%

Dolby Laboratories DLB 11/10/06 $26.70 $31.45 5.4 +17.8%

* 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.

Subscription Information

Welcome to The Deen's List^TM, 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 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.

The Deen's List
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Santa Barbara, CA 93130
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