The Deen's ListTM
Our Goal: To outperform the S&P through up markets and down.
A service of Deen Capital Management, Inc. (www.deencapital.com)
Vol.6 #278 Tuesday, September 2, 2008 11:29AM EDT

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

Market Stance: BULLISH (since July 17, 2008)

Contents

Performance
Bought Bruker Corp. (BRKR)
Open Positions
Subscription Information
Privacy Policy
Disclaimers
Contact Us

Performance

Deen Capital S&P 500
Year-to-date as of August 29, 2008 -10.1% * -11.4%
12 months (Aug 29, 2007 to Aug 29, 2008) +2.5% * -10.6%

* An average of managed accounts, net after all commissions and fees.

Click here for more performance data.

Click here for information on managed accounts.

Bought Bruker Corp. (BRKR)

Initial percent of portfolio (approx.)5.0%
Net buy price in managed accounts*$16.37
Most recent close (Aug 29)$15.44
Net change (based on net buy price)+0.93
Today's volume as of 11:25am ET990,027 ($16.2 million)
Average daily volume548,300 ($9.0 million)
This year's earnings-per-share$0.54 (est)
Next year's earnings-per-share$0.73 (est)
P/E using next year's earnings22.4 (est)
Earnings growth rate, next 5 years25% per year (est)
Corporate HeadquartersBillerica, MA
Web sitewww.bruker-biosciences.com

* Buy prices shown are net after commissions and fees.

Today, Tuesday, September 2, 2008, I bought BRKR, first for client accounts, then for my personal accounts.

Bruker Corp. designs, manufactures, and markets life science and materials research tools based on mass spectrometry, X-ray, and spectroscopy technologies.

This stock is a component of the IBD 100 Index. ("IBD" = "Investor's Business Daily")

Here's why I bought this stock:

+ Possible breakout today: The stock is up sharply today on heavy volume. A close above $16.33 would be a breakout from a six-month trading range to a new six-and-a-half year high. The intraday high so far, as I write this, is $16.72.

+ Volume spike: As I write this, about two hours after the opening bell, volume is about 1.8 times average.

+ Excellent recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +26%, +35%, +15%, and, most recently, for the quarter ended June 30, +31% to $311.5 million.

+ Excellent recent earnings-per-share growth. Here are the quarterly EPS figures for the last eight quarters:

Sep 07 vs Sep 06:  6c vs  4c
Dec 07 vs Dec 06: 17c vs  9c
Mar 08 vs Mar 07: 10c vs  9c
Jun 08 vs Jun 07: 13c vs 11c

+ Strong and rising earnings-per-share estimates: According to recent data from First Call, the consensus earnings estimate for 2008 is 54c, revised upward from 51c 90 days ago (and up from 2007 actual earnings of 53c); and the consensus estimate for 2009 is 73c, revised upward from 70c 90 days ago.

+ Valuation: At 22 times next year's estimated earnings and a projected 5-year annualized earnings growth rate of 25%, the stock is attractively priced.

+ History of earnings surprises: This company has reported earnings-per-share at least a penny above estimates in three of the past four quarters. Most recently, for the quarter ended June 30, they "beat the Street" by 4c.

+ The company's industry group ("Medical - Systems/Equipment") is ranked #24 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, Tuesday, September 2, 2008

Open Positions

Model Portfolio

Company Name Stock
Symbol
Buy
Date
NetBuy
Price*
Current
Price**
Weeks
Held
% of
Portfolio
Gain
(Loss)
Bruker Corp. BRKR 09/02/08 $16.37 $16.45 0.0 5.0% +0.5%
Solera Holdings Inc. SLH 08/28/08 $30.01 $30.54 0.7 5.0% +1.7%
Kendle International Inc. KNDL 08/28/08 $50.63 $50.40 0.7 4.9% -0.5%
Sapient Corp. SAPE 08/27/08 $9.25 $9.59 0.9 5.1% +3.7%
LDK Solar Co. Ltd. LDK 08/26/08 $48.65 $49.12 1.0 4.9% +1.0%
SkillSoft PLC SKIL 08/22/08 $10.67 $10.92 1.6 5.0% +2.3%
VisionChina Media Inc. VISN 08/21/08 $19.22 $20.29 1.7 4.1% +5.6%
SunPower Corp. SPWR 08/18/08 $89.00 $93.84 2.1 5.1% +5.4%
Estee Lauder Cos Inc. EL 08/18/08 $51.31 $49.95 2.1 4.8% -2.6%
Ebix Inc. EBIX 08/14/08 $105.10 $113.40 2.7 5.4% +7.9%
PAREXEL International Corp. PRXL 08/07/08 $32.62 $32.11 3.7 4.9% -1.6%
Thoratec Corp. THOR 08/05/08 $23.18 $27.18 4.0 6.9% +17.3%
II-VI, Inc. IIVI 08/05/08 $39.98 $44.60 4.0 5.5% +11.6%
Covidien, Ltd. COV 08/05/08 $52.60 $54.76 4.0 6.1% +4.1%
Varian Medical Systems VAR 07/24/08 $59.79 $64.53 5.7 6.6% +7.9%
Woodward Governor WGOV 07/22/08 $44.19 $46.60 6.0 5.4% +5.4%
Cash 15.8%  
Total 100%  

* Buy prices shown are net after commissions and fees.

** Current prices are at least 20 minutes old.

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.

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.

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
(800) 353-4990
deenslist@deencapital.com

Copyright © 2008 Deen Capital Management, Inc.