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Please read carefully our disclaimers at the end of this newsletter. Market Stance: BULLISH (since July 24, 2010) Contents
Typical Client 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 Nova Measuring Instruments (NVMI)
* Buy prices shown are net after commissions and fees. Today, Tuesday, August 3, 2010, I bought NVMI, for both client and my personal accounts. Nova Measuring Instruments Ltd. makes process control metrology systems used in the fabrication of semiconductors. Here's why I bought this stock: + News: This morning, before the open, the company announced results for the quarter ended June 30. Earnings came in at 18c per diluted share (vs 1c last year). Revenue was up 179% to $19.4 million. I was unable to find quarterly sales and earnings estimates for this little-known company. + The stock is up sharply this morning on extremely heavy volume. + Breakout: This morning, the stock is breaking out of a 14-week trading range to a new 7-month high. It's within 50c of a 6-year high. + Volume spike, mostly on the buy side: This morning's volume, just an hour and a half after the opening bell, is huge -- already more than 13x average. + Excellent recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +29%, +145%, +179%, and, most recently, as cited above, +179%. + Excellent recent earnings-per-share growth. Here are the quarterly EPS figures for the last eight quarters:
Sep 09 vs Sep 08: 9c vs (9c) Dec 09 vs Dec 08: 13c vs (12c) Mar 10 vs Mar 09: 12c vs (8c) Jun 10 vs Jun 09: 18c vs 1c + Solid earnings estimates: One source indicates an estimate of 40c per share for 2010 and 50c for 2011. I have no data on whether these estimates have been rising or falling. + Valuation: At 13 times next year's estimated earnings, the stock is still, even after this morning's gain, attractively priced. + The company's industry group ("Elec - Semiconductor Equipment") is ranked #73 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, Tuesday, August 3, 2010
* Buy prices shown are net after commissions. ** 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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