|
Please read carefully our disclaimers at the end of this newsletter. Market Stance: BULLISH (since December 8, 2008) Contents
Performance
* An average of managed accounts, net after all commissions and fees. Click here for more performance data. Click here for information on managed accounts.
* Buy prices shown are net after commissions and fees. Today, Tuesday, December 9, 2008, I bought GB, first for client accounts, then for my personal accounts. Greatbatch, Inc. manufactures components used in implantable medical devices. This stock is a component of the IBD New America and the S&P 600 SmallCap Indexes. ("IBD" = "Investor's Business Daily") Here's why I bought this stock: + Technical: The three heaviest volume days of November and December (to date) have been up days. Also, the stock is trading near the high end of its 4-month trading range. + I think the stock is a buy today in particular because it was down yesterday, trading as low as $23.21, testing its 50-day moving average. Today, it is up slightly, but still down from Friday's close. + Excellent recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +34%, +59%, +81%, and, most recently, for the quarter ended Sep 30, +72% to $136.2 million. + Latest quarter shows a turnaround in recent earnings-per-share growth. Here are the quarterly EPS figures for the last eight quarters:
Dec 07 vs Dec 06: 21c vs 23c Mar 08 vs Mar 07: 16c vs 33c Jun 08 vs Jun 07: 30c vs 42c Sep 08 vs Sep 07: 44c vs 29c + Strong and rising earnings-per-share estimates: According to recent data from First Call, the consensus earnings estimate for 2008 is $1.27, revised upward from $1.19 90 days ago (but down from 2007 actual earnings of $1.33); and the consensus estimate for 2009 is $1.69, revised upward from $1.64 90 days ago. + Valuation: At 14 times next year's estimated earnings and a projected 5-year annualized earnings growth rate of 13%, the stock is attractively priced. + History of earnings surprises: This company has reported earnings-per-share at least 6c above estimates in both of the past two quarters. Most recently, for the quarter ended Sep 30, they "beat the Street" by 12c. + The stock's 200-day moving average is rising, indicating a long-term uptrend. I chose to buy the stock in spite of the following negative factor: - The company's industry group ("Medical Products") is ranked #28 for relative strength out of 197 industry groups tracked by Investor's Business Daily. This ranking changes daily, and it has been generally fairly stable to falling slightly over recent weeks and months. -KD, Tuesday, December 9, 2008 Model Portfolio
* Buy prices shown are net after commissions and fees. ** 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 © 2008 Deen Capital Management, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||