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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 Lihua International, Inc. (LIWA)
* Buy prices shown are net after commissions and fees. Today, Wednesday, December 2, 2009, I bought LIWA, for both client and my personal accounts. Lihua International, Inc., through its subsidiaries, manufactures copper replacement products for magnet and fine wire markets in China. Here's why I bought this stock: + Breakout: The stock is up sharply today on extremely heavy volume. If the current price holds, this will be a breakout from an 8-week trading range to a new all-time high. + Volume spike: As I write this, about 3 hours after the opening bell, volume has already exceeded 6 times average, and is on track to set an all-time record. + Excellent recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +1%, +112%, +225%, and, most recently, for the quarter ended Sep 30, +186% to $40.9 million. + Mostly excellent recent earnings-per-share growth. Here are the quarterly EPS figures for the last eight quarters:
Dec 08 vs Dec 07: 13c vs 19c Mar 09 vs Mar 08: 19c vs 17c Jun 09 vs Jun 08: 31c vs 25c Sep 09 vs Sep 08: 39c vs 27c No estimates are available for this little-known stock. + Valuation: At 10 times trailing 12-month earnings, the stock is still, even after this morning's big gain, very attractively priced. + The company's industry group ("Electrical Equipment") is ranked #103 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. -KD, Wednesday, December 2, 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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