The Deen's List Vol.6 #386

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 #386 Saturday, December 27, 2008 8:54PM 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 26, 2008 -27.6% * -39.2%

12 months (Dec 26, 2007 to Dec 26, 2008) -28.9% * -40.4%

24 months (Dec 26, 2006 to Dec 26, 2008) -7.7% * -35.8%

* 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)

Last week, the S&P slid 1.6%, and Deen Capital accounts gave back 1.3%. For the quarter to date, it's S&P -24.6%, Deen Capital -9.4%. This is the story of 2008 -- a very ugly year, just less so for Deen Capital clients.

There are no significant new clues here regarding the market's next move. The picture I painted one week ago in this space stands. Since November 20, the market has been behaving well -- trending higher. However, I continue to be skeptical of this rally. We're not seeing the heavy buying volume normally associated with a major market turnaround. More importantly, my indicators remain overall bearish.

There may be some upside to be had in carefully selected stocks, but, in my view, risk remains high. That's why we're 69% in 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:  +1.2 BEARISH       +2.0 BEARISH (2)

Market Internals:                    54% BULLISH        49% BULLISH (3)

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

Stocks:Cash ratio (average):              61:39              31:69

(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 27, 2008

Open Positions

Model Portfolio

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

American Science & Eng'g ASEI 12/24/08 $69.06 $68.43 0.4 4.9% -0.9%

AECOM Technology Corp. ACM 12/23/08 $28.99 $30.13 0.6 5.2% +3.9%

TeleCommunication Systems Inc TSYS 12/22/08 $8.39 $8.26 0.7 4.1% -1.5%

Shenandoah Telecom SHEN 12/18/08 $26.24 $27.13 1.3 5.2% +3.4%

S X C Health Solutions SXCI 12/16/08 $17.16 $16.40 1.6 4.8% -4.4%

Greatbatch Inc. GB 12/09/08 $24.37 $25.18 2.6 6.4% +3.3%

Cash 69.4%

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 12/16/08 $89.18 12/22/08 $85.64 0.9 -4.0%

S&P Depositary Receipt SPY 12/10/08 $90.31 12/22/08 $85.64 1.7 -5.2%

S&P Depositary Receipt SPY 12/08/08 $91.85 12/22/08 $85.64 2.0 -6.8%

Fuel Systems Solutions Inc. FSYS 12/18/08 $32.31 12/22/08 $32.80 0.6 +1.5%

Epiq Systems Inc. EPIQ 12/08/08 $16.95 12/22/08 $15.65 2.0 -7.7%

Comtech Telecom Co. CMTL 12/08/08 $49.55 12/18/08 $45.91 1.4 -7.4%

Fluor Corp. FLR 12/09/08 $49.98 12/18/08 $49.23 1.3 -1.5%

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 11/04/08 $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 11/03/08 $96.60 11/05/08 $98.97 0.3 +2.5%

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%

* 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.

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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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