The Deen's List Vol.6 #353

The Deen's List^TM

Our Goal: To outperform the S&P through up markets and down.

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

Vol.6 #353 Saturday, November 29, 2008 5:23PM EST

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

Weekly Status Report: Contents

Performance
Market Commentary
Open Positions
Stocks Sold Over Past 13 Weeks
Subscription Information
Privacy Policy
Disclaimers
Contact Us

Performance

Deen Capital S&P 500

Year-to-date as of November 28, 2008 -23.3% * -37.7%

12 months (Nov 28, 2007 to Nov 28, 2008) -23.5% * -37.6%

24 months (Nov 28, 2006 to Nov 28, 2008) +3.0% * -32.7%

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

Click here for more performance data.

Click here for information on managed accounts.

Market Commentary

Market Stance: BEARISH (since November 6, 2008)

Last week, the market staged a huge rally. The S&P shot up 12.1%, while Deen Capital accounts, on average, gained 2.2%. This does not mean that the market has turned the corner. There remains high risk that the steep and painful downtrend of the past year will re-assert itself soon. That's why I did not jump in with both feet.

That rally is much less impressive when put in context -- the S&P merely moved from -44.4% to -37.7% year-to-date.

Still, what about those 10 percentage points of gain we missed out on? I, for one, am content to let it go, if, as part of the deal, I can also "miss out" on 18 points of loss. Such is the case here. The "deal" is my strategy of sitting on very high levels of cash during unusually dicey market conditions. The 18 points of avoided loss refers to the rest of the fourth quarter, prior to this past week. Over that time frame, September 30 to November 21, the S&P swooned 22.8%, while Deen Capital accounts gave back only 4.1%.

And yet, I have done some nibbling; I sold a stock at a small profit last week; and all the stocks we now own are showing a paper profit. This is certainly a constructive development. My indicators, though still overall bearish, are approaching neutral territory.

If my indicators turn the corner next week -- entirely possible -- I will change my tune. Until then, I continue to maintain a high level of cash.

My Three Primary Technical Indicators:

                                       Prior week             Now
                                       ----------           -------
NASDAQ Timing Model (Ver.10q):           BEARISH            BEARISH (1)
Last signal:  BEARISH on Sep 4, 2008

Performance of Recent Stock Picks:  -5.3 BEARISH       +2.2 BEARISH (2)

Market Internals:                     6% BEARISH        22% BULLISH (3)

-----------------------------------------------------------------------
Market's Overall Technical Rating:       BEARISH            BEARISH

Stocks:Cash ratio (average):              10:90              34:66

(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 recent stock picks (I actually buy only some of these). A positive number means my recent 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, Saturday, November 29, 2008

Open Positions

Model Portfolio

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

Websense Inc. WBSN 11/26/08 $15.71 $16.17 0.4 6.1% +2.9%

Genoptix Inc. GXDX 11/26/08 $29.86 $31.73 0.4 5.2% +6.3%

Almost Family Inc. AFAM 11/26/08 $40.06 $43.96 0.4 6.4% +9.7%

California Water Services CWT 11/24/08 $40.79 $42.50 0.7 6.0% +4.2%

American Science & Eng'g ASEI 11/20/08 $70.10 $75.87 1.3 5.3% +8.2%

PetMed Express Inc. PETS 11/19/08 $17.89 $17.93 1.4 4.9% +0.2%

Cash 66.0%

Total 100%

* Buy prices shown are net after commissions and fees.

Stocks Sold Over Past 13 Weeks

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

LHC Group Inc. LHCG 10/30/08 $30.61 11/19/08 $31.80 2.9 +3.9%

Thoratec Corp. THOR 10/31/08 $24.67 11/18/08 $21.98 2.6 -10.9%

Greatbatch Inc. GB 11/11/08 $25.54 11/18/08 $23.77 1.0 -6.9%

Cubist Pharmaceuticals CBST 11/13/08 $24.95 11/18/08 $22.31 0.7 -10.6%

S&P Depositary Receipt SPY 11/13/08 $90.22 11/14/08 $88.40 0.1 -2.0%

Fuel Systems Solutions Inc. FSYS 11/07/08 $37.26 11/13/08 $32.31 0.9 -13.3%

S&P Depositary Receipt SPY 11/03/08 $96.60 11/05/08 $98.97 0.3 +2.5%

S&P Depositary Receipt SPY 11/04/08 $100.20 11/05/08 $95.62 0.1 -4.6%

Ensign Group Inc. ENSG 11/03/08 $17.92 11/05/08 $15.93 0.3 -11.1%

S&P Depositary Receipt SPY 10/30/08 $94.91 10/31/08 $95.02 0.1 +0.1%

S&P Depositary Receipt SPY 10/17/08 $95.44 10/21/08 $95.81 0.6 +0.4%

Royal Gold Inc. RGLD 09/18/08 $37.73 10/16/08 $33.18 4.0 -12.1%

S&P Depositary Receipt SPY 09/25/08 $121.56 09/29/08 $113.48 0.6 -6.6%

S&P Depositary Receipt SPY 09/19/08 $124.54 09/29/08 $113.48 1.4 -8.9%

S&P Depository Receipt SPY 09/19/08 $124.33 09/24/08 $118.73 0.7 -4.5%

S&P Depository Receipt SPY 09/18/08 $120.17 09/24/08 $118.73 0.9 -1.2%

S&P Depository Receipt SPY 09/18/08 $120.17 09/22/08 $120.50 0.6 +0.3%

Varian Medical Systems VAR 07/24/08 $59.79 09/19/08 $60.12 8.1 +0.5%

Thoratec Corp. THOR 08/05/08 $23.18 09/19/08 $27.48 6.4 +18.6%

Covidien, Ltd. COV 08/05/08 $52.60 09/19/08 $53.60 6.4 +1.9%

Estee Lauder Cos Inc. EL 08/18/08 $51.31 09/19/08 $50.51 4.6 -1.6%

Super Micro Computer, Inc. SMCI 09/03/08 $10.71 09/17/08 $9.98 2.0 -6.8%

DXP Enterprises, Inc. DXPE 09/08/08 $60.40 09/17/08 $57.66 1.3 -4.5%

Questcor Pharmaceuticals Inc QCOR 09/11/08 $6.19 09/17/08 $5.78 0.9 -6.7%

CSX Corp. CSX 09/12/08 $61.28 09/16/08 $56.59 0.6 -7.7%

Solera Holdings Inc. SLH 08/28/08 $30.01 09/15/08 $28.74 2.6 -4.2%

II-VI, Inc. IIVI 09/08/08 $42.30 09/15/08 $40.26 1.0 -4.8%

Bruker Corp. BRKR 09/02/08 $16.37 09/12/08 $15.30 1.4 -6.5%

Parametric Tech PMTC 09/08/08 $20.77 09/11/08 $19.76 0.4 -4.9%

Sapient Corp. SAPE 08/27/08 $9.25 09/10/08 $8.66 2.0 -6.4%

SkillSoft PLC SKIL 08/22/08 $10.67 09/09/08 $10.43 2.6 -2.3%

Ebix Inc. EBIX 08/14/08 $105.10 09/05/08 $102.11 3.1 -2.8%

VisionChina Media Inc. VISN 08/21/08 $19.22 09/05/08 $17.33 2.1 -9.8%

LDK Solar Co. Ltd. LDK 08/26/08 $48.65 09/05/08 $43.52 1.4 -10.6%

Kendle International Inc. KNDL 08/28/08 $50.63 09/05/08 $46.49 1.1 -8.2%

II-VI, Inc. IIVI 08/05/08 $39.98 09/04/08 $41.88 4.3 +4.8%

PAREXEL International Corp. PRXL 08/07/08 $32.62 09/04/08 $30.63 4.0 -6.1%

SunPower Corp. SPWR 08/18/08 $89.00 09/03/08 $85.19 2.3 -4.3%

Woodward Governor WGOV 07/22/08 $44.19 09/02/08 $45.87 6.0 +3.8%

* Buy and sell prices shown are net after commissions and fees. This means that the gains/losses shown are also net after transaction expenses.

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.

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.

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
PO Box 30925
Santa Barbara, CA 93130
(800) 353-4990
deenslist@deencapital.com