|
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 Research In Motion (RIMM)
* Buy prices shown are net after commissions and fees. Today, Monday, December 21, 2009, I bought RIMM, for both client and my personal accounts. This stock is a component of the NASDAQ 100. Here's why I bought this stock: + News: Last Thursday, Dec 17, after the close, the company announced results for the quarter ended Nov 30. Earnings came in at $1.10 per diluted share (vs 83c last year and analysts' consensus $1.04). Revenue was up 41% to $3.92 billion. + A "true surprise"*: For a week prior to the news, the stock was mostly edging lower. Then, on Friday, Dec 18, the stock jumped +10% on very heavy volume (about 4 times average). * "True surprise" is my term to describe a company news item that ignites heavy buying and that was not preceded by a short-term run-up in the stock price (i.e. not preceded by rumor). + Today, the price is down slightly on lighter volume. I'm treating this as a buying opportunity. + Excellent recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +84%, +53%, +37%, and, most recently, as cited above, +41%. + Excellent recent earnings-per-share growth. Here are the quarterly EPS figures for the last eight quarters:
Feb 09 vs Feb 08: $0.90 vs $0.72 May 09 vs May 08: $0.98 vs $0.84 Aug 09 vs Aug 08: $1.08 vs $0.86 Nov 09 vs Nov 08: $1.10 vs $0.83 + Strong and rising earnings-per-share estimates: According to recent data from First Call, the consensus earnings estimate for FY 10 (ends Feb 28) is $4.30, revised upward from $4.14 90 days ago (and up from FY 09 actual earnings of $3.44); and the consensus estimate for FY 11 is $4.95, revised upward from $4.92 90 days ago. + Valuation: At 14 times next year's estimated earnings and a projected 5-year annualized earnings growth rate of 19%, the stock is still, even after Friday's big gain, attractively priced. + History of earnings surprises: This company has reported earnings-per-share at least 3c above estimates in each of the past four quarters, including the just-reported quarter cited above, which "beat the Street" by 6c. + The company's industry group ("Telecom - Wireless Equipment") is ranked #94 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, Monday, December 21, 2009 Sold China Green Agriculture Inc. (CGA) -13.7%
* Buy and sell prices shown are net after commissions and fees. This means that the gain/loss shown is also net after transaction expenses. Today, Monday, December 21, 2009, I sold CGA, first for client accounts, then for my personal accounts. This stock has closed below my stop loss price of $15.85 two days in a row, and it is down again today. Reason enough to sell. -KD, Monday, December 21, 2009 Sold Lihua International, Inc. (LIWA) -4.8%
* Buy and sell prices shown are net after commissions and fees. This means that the gain/loss shown is also net after transaction expenses. Today, Monday, December 21, 2009, I sold LIWA, first for client accounts, then for my personal accounts. I am selling LIWA today based on a probable signal from my proprietary StockSell Program. This is based purely on technical considerations. -KD, Monday, December 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.
The Deen's List Copyright © 2009 Deen Capital Management, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||