The Deen's List Vol.6 #361

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 #361 Saturday, December 6, 2008 1:04PM 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 December 5, 2008 -25.1% * -39.0%

12 months (Dec 5, 2007 to Dec 5, 2008) -26.0% * -39.7%

24 months (Dec 5, 2006 to Dec 5, 2008) -3.8% * -35.5%

* 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)

The economic outlook continues to deteriorate, but the tone of the market is improving. On Friday, we had another frightening piece of very bad news -- more than half a million people lost their jobs in November. Sure, everyone expected huge job losses, but even the most gloomiest of forecasts were not nearly gloomy enough. And yet stocks rallied! Up 3.7% on the S&P.

Psychology is the single most important factor driving stock prices, and a positive reaction to bad news is a sign that psychology has turned around. Friday was an extreme example of this.

Also, my stock picks are starting to perform well for the most part. So I am increasing our exposure to stocks somewhat. (We're still heavily in cash, though.)

One more observation: The market put in a "higher low" last week -- for the first time since August. That is, one short-term nadir was higher than the preceding short-term nadir.

Deen Capital accounts gave back 2.2% last week, in line with the S&P 500. For the fourth quarter to date, the scorecard now reads: Deen Capital -6.2%, S&P 500 -24.5%. We outperformed the market on the way up in 2005, 2006, and 2007, and we are very much outperforming on the way down in 2008.

I'm not declaring a bullish stance just yet -- but I am on the brink of doing so.

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:  +2.2 BEARISH       +3.3 NEUTRAL (2)

Market Internals:                    22% BULLISH        24% BULLISH (3)

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

Stocks:Cash ratio (average):              34:66              35:65

(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, December 6, 2008

Open Positions

Model Portfolio

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

Fuel Systems Solutions Inc. FSYS 12/05/08 $30.59 $30.51 0.1 5.0% -0.2%

PetMed Express Inc. PETS 12/03/08 $16.59 $15.55 0.4 5.6% -6.2%

DeVry Inc. DV 12/01/08 $56.18 $58.37 0.7 6.3% +3.9%

Almost Family Inc. AFAM 11/26/08 $40.06 $44.89 1.4 6.7% +12.0%

California Water Services CWT 11/24/08 $40.79 $41.35 1.7 6.0% +1.4%

American Science & Eng'g ASEI 11/20/08 $70.10 $74.00 2.3 5.3% +5.6%

Cash 65.1%

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)*

S&P Depositary Receipt SPY 12/03/08 $87.58 12/04/08 $85.20 0.1 -2.7%

Websense Inc. WBSN 11/26/08 $15.71 12/02/08 $14.62 0.9 -6.9%

PetMed Express Inc. PETS 11/19/08 $17.89 12/02/08 $16.77 1.9 -6.2%

Genoptix Inc. GXDX 11/26/08 $29.86 12/01/08 $28.84 0.7 -3.4%

LHC Group Inc. LHCG 11/25/08 $31.63 11/28/08 $32.98 0.4 +4.2%

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%

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

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Welcome to The Deen's List^TM, an e-mail stock newsletter from Deen Capital Management, Inc.

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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
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