The Deen's ListTM
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 #301 Wednesday, December 2, 2009 12:44PM EST

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

Market Stance: BULLISH (since December 1, 2009)

Contents

Performance
Bought Lihua International, Inc. (LIWA)
Open Positions
Subscription Information
Privacy Policy
Disclaimers
Contact Us

Performance

Deen Capital S&P 500
Year-to-date as of December 1, 2009 +20.5% * +25.6%
12 months (Dec 1, 2008 to Dec 1, 2009) +20.1% * +39.3%
24 months (Dec 1, 2007 to Dec 1, 2009) -11.4% * -21.5%
36 months (Dec 1, 2006 to Dec 1, 2009) +18.7% * -15.3%
48 months (Dec 1, 2005 to Dec 1, 2009) +36.2% * -4.8%

* 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)

Initial percent of portfolio (approx.)5.0%
Net buy price in managed accounts*$9.99
Most recent close (Dec 01)$8.26
Net change (based on net buy price)+1.73
Today's volume as of 12:29pm ET1.6 million ($15.9 million)
Average daily volume247,000 ($2.5 million)
This year's earnings-per-sharen/a
Next year's earnings-per-sharen/a
P/E using next year's earningsn/a
Earnings growth rate, next 5 yearsn/a
Corporate HeadquartersBritish Virgin Islands
Web sitewww.lihuaintl.com

* 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

Open Positions

Model Portfolio

Company Name Stock
Symbol
Buy
Date
NetBuy
Price*
Current
Price**
Weeks
Held
% of
Portfolio
Gain
(Loss)
Lihua International, Inc. LIWA 12/02/09 $9.99 $10.10 0.0 5.0% +1.1%
China Green Agriculture Inc. CGA 12/01/09 $17.21 $16.91 0.1 4.9% -1.7%
China Yuchai Int'l CYD 12/01/09 $16.90 $16.25 0.1 4.8% -3.8%
SmartHeat Inc. HEAT 11/30/09 $13.03 $15.42 0.3 5.7% +18.4%
Telestone Technology TSTC 11/25/09 $13.63 $15.73 1.0 5.6% +15.4%
S&P Depositary Receipt SPY 11/25/09 $111.39 $111.03 1.0 25.0% -0.3%
S&P Depositary Receipt SPY 11/16/09 $110.45 $111.03 2.3 24.3% +0.5%
S&P Depositary Receipt SPY 11/13/09 $109.96 $111.03 2.7 15.0% +1.0%
Priceline.com Inc. PCLN 11/10/09 $203.56 $217.26 3.1 5.1% +6.7%
Cash 4.6%  
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 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.

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Privacy Policy

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Disclaimers

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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