The Deen's List Vol.7 #248

The Deen's List^TM

Our goal since Oct. 2005: Outperform the S&P through up markets and down.

A service of Deen Capital Management, Inc. (www.deencapital.com)

Vol.7 #248 Tuesday, October 6, 2009 11:25AM EDT

Please read carefully our disclaimers at the end of this newsletter.

Market Stance: BEARISH (since September 26, 2009)

Contents

Performance
Bought S&P Depositary Receipt (SPY)
Open Positions
Subscription Information
Privacy Policy
Disclaimers
Contact Us

Performance

Deen Capital S&P 500

Year-to-date as of October 5, 2009 +16.6% * +17.4%

12 months (Oct 5, 2008 to Oct 5, 2009) +8.4% * -2.8%

24 months (Oct 5, 2007 to Oct 5, 2009) -13.2% * -30.0%

36 months (Oct 5, 2006 to Oct 5, 2009) +17.2% * -18.0%

48 months (Oct 5, 2005 to Oct 5, 2009) +44.2% * -5.6%

* An average of managed accounts, net after all commissions and fees.

Click here for more performance data.

Click here for information on managed accounts.

Bought S&P Depositary Receipt (SPY)

Initial percent of portfolio (approx.) 20.0%

Net buy price in managed accounts* $105.96

Most recent close (Oct 05) $104.02

Net change (based on net buy price) +1.94

Today's volume as of 11:10am ET 61.7 million ($6.5 billion)

Average daily volume 188.0 million ($19.9 billion)

This year's earnings-per-share n/a

Next year's earnings-per-share n/a

P/E using next year's earnings n/a

Earnings growth rate, next 5 years n/a

Corporate Headquarters n/a

Web site n/a

* Buy prices shown are net after commissions and fees.

Today, Tuesday, October 6, 2009, I bought SPY (the S&P 500), first for client accounts, then for my personal accounts.

On the one hand, I'm still bearish. I don't like the low-volume quality of this rally.

On the other hand, the market is rallying sharply yesterday and today. The three stocks we own are performing extremely well. Yet, because we are so heavily in cash, we are underperforming. I have erred on the side of caution before; could I be doing so now?

On balance, I'm still cautious, but I have decided to be just slightly less cautious. I am putting 20% of our cash to work in the S&P 500. This is still a bearish portfolio, because it still includes 61% cash. It is still less volatile than the S&P.

-KD, Tuesday, October 6, 2009

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 10/06/09 $105.96 $105.92 0.0 19.8% -0.0%

Lincoln Educational LINC 09/28/09 $22.65 $23.09 1.1 4.9% +1.9%

RINO International Corp. RINO 09/17/09 $14.10 $24.14 2.7 8.3% +71.1%

Zhongpin, Inc. HOGS 09/08/09 $11.75 $14.12 4.0 5.7% +20.2%

Cash 61.3%

Total 100%

* Buy prices shown are net after commissions and fees.

** Current prices are at least 20 minutes old.

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.

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.

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
PO Box 30925
Santa Barbara, CA 93130
(800) 353-4990
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