The Deen's ListTM
A service of Deen Capital Management, Inc. (www.deencapital.com)
Vol.4 #270 Friday, December 22, 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 22, 2006

Deen Capital+21.1%*
S&P 500+15.0%

* 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: BEARISH (since December 18, 2006)

Clients of Deen Capital have good reason to be merry, as managed accounts have performed exceptionally well this year, handily outpacing the market averages.

My indicators are now unanimously bearish, and I have moved assets under management from roughly 63% invested in stocks to roughly 38%. In other words, we are now mostly in cash.

I am suspicious of my bearish indicators, however. Volume is light, and will almost certainly remain light throughout next week, as many market participants are on vacation. The market's behavior under such conditions says next to nothing about its likely behavior come January.

There's at least a reasonable chance that the bull market has merely paused -- the pause that refreshes -- and will resume next month.

Permit me to take this opportunity to extend my best wishes for a safe, healthy and joyous holiday season.

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:  +5.5 NEUTRAL       -0.6 BEARISH (2)

Market Internals:                    71% BEARISH        58% BEARISH (3)

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

Stocks:Cash ratio (Ken's IRA):            63:37              38:62

(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 22, 2006

  Open Positions

Company Name Stock
Symbol
Buy
Date
NetBuy
Price*
Current
Price
Weeks
Held
Gain
(Loss)
On SemiconductorONNN12/20/06$7.57$7.320.3-3.3%
Palomar Med TechPMTI12/14/06$53.23$50.941.1-4.3%
Gulf Island FabricationGIFI12/06/06$39.06$37.542.3-3.9%
SimpleTech Inc.STEC12/04/06$10.30$12.002.6+16.5%
DSW Inc.DSW11/30/06$38.12$39.913.1+4.7%
Dress Barn TheDBRN11/30/06$24.12$23.873.1-1.0%
Cisco Sys Inc.CSCO11/15/06$26.62$26.935.3+1.2%

* 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)
Dolby LaboratoriesDLB11/10/06$26.7012/19/06$31.005.6+16.1%
GoogleGOOG10/20/06$456.2412/18/06$463.848.4+1.7%
AMREP Corp.AXR11/07/06$68.4712/18/06$127.885.9+86.8%
Allis chalmers EnrgyALY11/28/06$18.0212/18/06$22.812.9+26.6%
Watts Water Tech AWTS11/17/06$41.6812/15/06$41.304.0-0.9%
Emerson Elec Co.EMR11/08/06$43.5812/14/06$42.925.1-1.5%
The9 LimitedNCTY11/22/06$27.5812/13/06$27.223.0-1.3%
Apple ComputerAAPL10/25/06$81.5512/12/06$86.006.9+5.5%
Zoll Medical Corp.ZOLL11/21/06$51.0512/12/06$53.633.0+5.1%
Metretek TechMEK11/22/06$14.3312/12/06$13.362.9-6.8%
Allegheny TechATI11/30/06$88.6412/12/06$89.571.7+1.1%
Ultra Clean HoldingsUCTT11/13/06$13.1612/11/06$12.934.0-1.8%
Research In MotionRIMM10/05/06$110.2811/27/06$135.827.6+23.2%
Metretek TechMEK11/07/06$14.5811/21/06$13.042.0-10.6%
Comtech GroupCOGO10/31/06$16.7111/16/06$15.632.3-6.5%
Republic Airways HlgRJET11/07/06$17.9911/15/06$17.161.1-4.6%
GigamediaGIGM11/09/06$11.1911/09/06$10.090.0-9.8%
Buffalo Wild WingsBWLD10/25/06$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 HoldingsUCTT10/24/06$12.9011/02/06$12.551.3-2.7%
Interactive IntellININ10/06/06$15.3411/01/06$16.563.7+8.0%
21st Century HldgTCHC10/19/06$22.7211/01/06$26.681.9+17.4%
Skechers Usa 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 Wld WdWW08/10/06$35.0310/27/06$44.6511.1+27.5%
Park ElectrochemicalPKE09/20/06$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%
Iivi 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 LabsIDXX07/28/06$86.5610/13/06$94.3311.0+9.0%
Wellcare HealthplansWCG08/03/06$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 Plc AdsSHPGY10/09/06$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 HoldingsUCTT09/20/06$11.0910/03/06$9.821.9-11.4%
Psychiatric SolutnPSYS09/12/06$35.6010/02/06$33.362.9-6.3%
Us Global Inv 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%

* 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.