The Deen's List Vol.6 #374

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 #374 Saturday, December 13, 2008 6:10PM 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 12, 2008 -26.4% * -38.7%

12 months (Dec 12, 2007 to Dec 12, 2008) -27.4% * -39.5%

24 months (Dec 12, 2006 to Dec 12, 2008) -5.1% * -35.1%

* 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 December 13, 2008)

The market is giving contradictory signals.

On the one hand, my market internals indicator had its two best readings last week (Wednesday and Friday) since September 19. Also, the market has put in a sequence of higher highs and higher lows since the bottom of November 20. This is good.

On the other hand, my market indicators, which were just briefly overall bullish earlier this week, are now once again overall bearish. Friday, we had what some might call a bullish reversal, with the market down in the morning, but reversing in the afternoon and closing with a gain. I am skeptical of this turnaround, however, because volume was light.

As usual, I'll go with my indicators. We're over 50% cash, and I will be going into next week with a slight bias toward raising more cash. I would not be surprised to see more falling stock prices next week.

Deen Capital accounts were down 1.8% for the week, versus a 0.5% gain for the S&P. That's not good, but, quarter-to-date, it's Deen Capital -8.0%, S&P -24.0%.

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:  +3.3 NEUTRAL       -1.7 BEARISH (2)

Market Internals:                    24% BULLISH        36% BULLISH (3)

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

Stocks:Cash ratio (average):              35:65              48:52

(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 13, 2008

Open Positions

Model Portfolio

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

S&P Depositary Receipt SPY 12/10/08 $90.31 $88.99 0.4 9.8% -1.5%

Greatbatch Inc. GB 12/09/08 $24.37 $23.39 0.6 5.8% -4.0%

Fluor Corp. FLR 12/09/08 $49.98 $48.19 0.6 4.9% -3.6%

S&P Depositary Receipt SPY 12/08/08 $91.85 $88.99 0.7 14.8% -3.1%

Epiq Systems Inc. EPIQ 12/08/08 $16.95 $16.97 0.7 6.1% +0.1%

Comtech Telecom Co. CMTL 12/08/08 $49.55 $48.95 0.7 7.0% -1.2%

Cash 51.5%

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)*

California Water Services CWT 11/24/08 $40.79 12/11/08 $38.14 2.4 -6.5%

PetMed Express Inc. PETS 12/03/08 $16.59 12/11/08 $15.62 1.1 -5.8%

LHC Group Inc. LHCG 12/08/08 $35.74 12/09/08 $33.39 0.1 -6.6%

Fuel Systems Solutions Inc. FSYS 12/05/08 $30.59 12/09/08 $31.90 0.6 +4.3%

American Science & Eng'g ASEI 11/20/08 $70.10 12/09/08 $68.47 2.7 -2.3%

Almost Family Inc. AFAM 11/26/08 $40.06 12/09/08 $50.21 1.9 +25.3%

DeVry Inc. DV 12/01/08 $56.18 12/08/08 $53.76 1.0 -4.3%

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%

* 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.

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.

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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.

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