Please read carefully our disclaimers at the end of this newsletter. Market Stance: BULLISH (since November 28, 2007)Contents
Year-To-Date Performance
* 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. Bought NDS Group plc ADS (NNDS)
* The "Net buy price" is the total net purchase cost after commissions for all managed accounts divided by the total number of shares. Today, Friday, November 30, 2007, I bought NNDS, first for client accounts, then for my personal accounts. NDS Group plc supplies open conditional access software and interactive systems for the secure delivery of entertainment and information to television set-top boxes, and personal computers. They also develop secure datacasting solutions for the distribution of data and multimedia. Here's why I bought this stock: + Recent Breakout: Back on October 29, this stock broke out of a 17-month trading range to a six-and-a-half year high on very heavy volume. This was in response to a huge earnings surprise. + Technical: Since the breakout, the stock price has been edging lower, but has held up relatively well. It has participated in this week's rally, and is now back up very near that six-and-a-half year high. + Excellent recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +8%, +20%, +31%, and, most recently, for the quarter ended Sep 30, +25% to $204.9 million. + Excellent recent earnings-per-share growth. Here are the quarterly EPS figures for the last eight quarters: Dec 06 vs Dec 05: 52c vs 45c Mar 07 vs Mar 06: 50c vs 49c Jun 07 vs Jun 06: 70c vs 34c Sep 07 vs Sep 06: 79c vs 61c + Mostly rising earnings-per-share estimates: According to recent data from First Call, the consensus earnings estimate for FY 08 (ends June 30) is $2.71, revised upward from $2.66 90 days ago (and up from FY 07 actual earnings of $2.33); and the consensus estimate for FY 09 is $3.13, revised downward from $3.16 90 days ago, but up from $3.09 a month ago. + Valuation: At 19 times next year's estimated earnings and a projected 5-year annualized earnings growth rate of 24%, the stock is attractively priced. + Recent earnings surprises: Earnings for the quarter ended June 30 came in 14c above estimates, and the most recent quarter, ended September 30, came in 21c above. + The company's industry group ("Computer Software - Enterprise") is ranked #8 for relative strength out of 197 industry groups tracked by Investor's Business Daily. This ranking changes daily, and it has been generally rising over recent weeks and months. + The stock's 200-day moving average is rising, indicating a long-term uptrend. -KD, November 30, 2007
* 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. 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. Your feedback is welcome. Send e-mail to deenslist@deencapital.com. To subscribe or unsubscribe, include the word "subscribe" or "unsubscribe" in the Subject line. This newsletter is free to managed account clients. For a limited time, it is also free to all interested parties. 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. 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. The Deen's List Copyright © 2007 Deen Capital Management, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||