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Please read carefully our disclaimers at the end of this newsletter. Market Stance: BULLISH (since October 9, 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. Bought Telestone Technology (TSTC)
* Buy prices shown are net after commissions and fees. Today, Wednesday, October 21, 2009, I bought TSTC, first for client accounts, then for my personal accounts. Telestone Technologies Corp. provides wireless communications coverage solutions in China and internationally. Here's why I bought this stock: + News: Yesterday, before the open, the company announced that its Wireless Fiber Distribution System passed all testing procedures of the FCC. + Breakout: The stock soared 31% yesterday on enormous volume. This price move was a breakout from a 33-month trading range to a new all-time high. + Volume spike: Yesterday's volume was some 22 times average. Incredible. + Three quarters of excellent recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: -10%, +14%, +22%, and, most recently, for the quarter ended June 30, +12.1% to $12.1 million. + Three quarters of excellent recent earnings-per-share growth. Here are the quarterly EPS figures for the last eight quarters:
Sep 08 vs Sep 07: 11c vs 19c Dec 08 vs Dec 07: 32c vs 24c Mar 09 vs Mar 08: 11c vs 8c Jun 09 vs Jun 08: 19c vs 17c Earnings estimates and earnings surprise history data are not available for this little-known stock. + Valuation: At 15 times trailing 12-month earnings, the stock is still, even after yesterday's big gain, attractively priced. + The company's industry group ("Telecom - Wireless Equipment") is ranked #49 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, Wednesday, October 21, 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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