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Please read carefully our disclaimers at the end of this newsletter. Market Stance: BULLISH (since December 1, 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 China Yuchai Int'l (CYD)
* Buy prices shown are net after commissions and fees. Today, Tuesday, December 1, 2009, I bought CYD, for both client and my personal accounts. China Yuchai International Ltd, through its subsidiary, Guangxi Yuchai Machinery Company Limited (GYMCL), manufactures, assembles, and sells light-duty, medium-sized, and heavy-duty diesel engines for construction equipment, trucks, buses, and cars in China. Here's why I bought this stock: + Technical: This stock has been very strong since a major breakout back on October 20. After two weeks of edging lower, the stock had a big up day yesterday (+12.3%) on extremely heavy volume (a 12-month record). I view this as a new technical buy signal. + Excellent and accelerating recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +16%, +12%, +33%, and, most recently, for the quarter ended Sep 30, +34% to $511.1 million. + The pattern of earnings growth has been a roller coaster ride, but the most recent quarter was superb. Here are the quarterly EPS figures for the last eight quarters:
Dec 08 vs Dec 07: 25c vs 48c Mar 09 vs Mar 08: 92c vs 25c Jun 09 vs Jun 08: 19c vs 25c Sep 09 vs Sep 08: 98c vs 25c There are no estimates available for this little-known stock. + Valuation: At 7 times trailing 12-month earnings, the stock is still, even after yesterday's big gain, attractively priced. + The stock's 200-day moving average is rising, indicating a long-term uptrend. I chose to buy the stock in spite of the following negative factor: - The company's industry group ("Trucks & Parts - Heavy Duty") is ranked #46 for relative strength out of 197 industry groups tracked by Investor's Business Daily. This ranking changes daily, and it has been generally falling over recent weeks and months. -KD, Tuesday, December 1, 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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