The Deen's ListTM
A service of Deen Capital Management, Inc. (www.deencapital.com)
Vol.4 #273 Saturday, December 30, 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 29, 2006

Deen Capital+21.2%*
S&P 500+15.6%

* 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)

2006 is now in the record books. My preliminary year-end calculation shows that Deen Capital accounts gained 21% on average, easily outpacing all major market averages.

Last week, the market (and Deen Capital accounts) made modest forward progress, but my technical indicators continue to be unanimously bearish. Little can be learned from last week's market action, since so many market participants were on vacation.

I opined one week ago in this space that "There's at least a reasonable chance that the bull market has merely paused -- the pause that refreshes -- and will resume next month". We'll know soon enough. I'm not gambling on an immediate resumption of the bull market; no, I'm honoring my indicators, which are telling me to cool my heels. The market looks weak right now.

But when the bull market does return, I intend to aggressively capitalize on it. Meanwhile, I wish you and yours a very Happy New Year!

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:  -0.6 BEARISH       +1.6 BEARISH (2)

Market Internals:                    58% BEARISH        63% BEARISH (3)

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

Stocks:Cash ratio (Ken's IRA):            38:62              29:71

(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 30, 2006

  Open Positions

Company Name Stock
Symbol
Buy
Date
NetBuy
Price*
Current
Price
Weeks
Held
Gain
(Loss)
ON SemiconductorONNN12/20/06$7.57$7.571.3+0.0%
Palomar Med TechPMTI12/14/06$53.23$50.672.1-4.8%
SimpleTech Inc.STEC12/04/06$10.30$12.683.6+23.1%
DSW Inc.DSW11/30/06$38.12$38.574.1+1.2%
Cisco Sys Inc.CSCO11/15/06$26.62$27.336.3+2.7%

* 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)
Dress Barn TheDBRN11/30/06$24.1212/28/06$23.244.0-3.7%
Gulf Island FabricationGIFI12/06/06$39.0612/26/06$36.462.9-6.7%
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%

* 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

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  Privacy Policy

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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
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(805) 682-1870
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Copyright © 2006 Deen Capital Management, Inc.