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Please read carefully our disclaimers at the end of this newsletter. Market Stance: BEARISH (since September 26, 2009) 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, September 29, 2009, I bought INOD, first for client accounts, then for my personal accounts. Innodata Isogen, Inc. provides knowledge process outsourcing (KPO), publishing and related information technology services. They serve media, publishing, information services, information technology, manufacturing, aerospace and defense, government, law, and intelligence companies. The company was founded in 1988 and is headquartered in Hackensack, New Jersey with additional offices in Dallas, Texas; London, England; Paris, France; Jerusalem, Israel; and Beijing, China. Here's why I bought this stock: + Technical: The stock has been rising strongly this year, and average volume has been almost continuously increasing since April. This is a very small stock, but is just starting to appear on some money managers' radar screens, myself included. I am interpreting a sharp drop in the stock price Friday and early yesterday, with a partial rebound late yesterday, as presenting a good entry point. + Two quarters of excellent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +1%, -1%, +19%, and, most recently, for the quarter ended June 30, +21% to $21.6 million. + Excellent recent earnings-per-share growth. Here are the quarterly EPS figures for the last eight quarters:
Sep 08 vs Sep 07: 5c vs 8c Dec 08 vs Dec 07: 11c vs 9c Mar 09 vs Mar 08: 15c vs 3c Jun 09 vs Jun 08: 13c vs 1c Analyst estimates are not available for this little-known stock. + Valuation: At 18 times trailing 12-month earnings, the stock is attractively priced. + The company's industry group ("Computer Tech Services") is ranked #31 for relative strength out of 197 industry groups tracked by Investor's Business Daily. This ranking changes daily, and it has been generally rising over recent weeks and months. + The stock's 200-day moving average is rising, indicating a long-term uptrend. -KD, Tuesday, September 29, 2009 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.
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