The Deen's ListTM
A service of Deen Capital Management, Inc. (www.deencapital.com)
Our goal: Outperform the S&P 500 in both up markets and down.
Our result: +56.4% for the 60 months ending August 6, 2010 (vs. +1.2% for the S&P)
For complete performance data, click here
Vol.8 #172 Saturday, August 7, 2010 3:25PM EDT

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

Weekly Status Report: Contents

Typical Client Performance
Market Commentary
Typical Client Portfolio
Stocks Sold Over Past 13 Weeks
Subscription Information
Privacy Policy
Disclaimers
Contact Us

Typical Client Performance

Deen Capital S&P 500
Year-to-date as of August 6, 2010 +5.1% * +1.7%
12 months (Aug 6, 2009 to Aug 6, 2010) +15.3% * +14.7%
24 months (Aug 6, 2008 to Aug 6, 2010) +7.1% * -8.8%
36 months (Aug 6, 2007 to Aug 6, 2010) +9.7% * -18.3%
48 months (Aug 6, 2006 to Aug 6, 2010) +31.8% * -4.6%
60 months (Aug 6, 2005 to Aug 6, 2010) +56.4% * +1.2%

* An average of managed accounts, net after all commissions and fees.

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Market Commentary

Market Stance: BULLISH (since July 24, 2010)

As I expected, the market rallied last week. Deen Capital accounts gained +1.5% on average. However, this is less than the S&P, which tacked on +1.9%. This is a bit of a disappointment. I've taken on more risk than the market, yet so far our recent reward, though good, has been less than the market. I think this is likely to change shortly. I continue to expect outperformance on the up side.

(Year-to-date, we continue to outperform the S&P: +5.1% vs. +1.7%.)

I continue to see positive psychology at work. For instance, a disappointing jobs report early Friday sent stocks lower in the morning, but most of that loss was recovered in the afternoon. Deen Capital accounts even posted a slight gain on Friday. This is thanks to positive market psychology -- the market is taking bad news in stride.

In spite of an overall tepid economy, I am seeing plenty of individual stocks with strong sales growth, strong earnings growth, plenty of positive earnings surprises, plenty of breakouts with good follow-through up trends. And many of these stocks remain under-valued. In other words, this is a very favorable environment for my style of stock picking.

Stay tuned. Last week was good, but I suspect the best is yet to come.

My Three Primary Technical Indicators:

                                       Prior week             Now
                                       ----------           -------
NASDAQ Timing Model (Ver.10r):           BEARISH            BEARISH (1)
Last signal:  BEARISH on Apr 27, 2010

Performance of Recent Stock Picks:  +7.7 BULLISH       +5.0 NEUTRAL (2)

Market Internals:                    74% BULLISH        75% BULLISH (3)

-----------------------------------------------------------------------
Market's Overall Technical Rating:       BULLISH            NEUTRAL

Stocks:Cash ratio (average):              100:0              92:8

(1) A proprietary computer model based on technical analysis of the NASDAQ Composite.

(2) This number (from -10 to +10) is based on the performance of ALL my recent stock picks (I actually buy only some of these). A positive number means my recent stock picks are generally rising; a negative number means they are generally falling. Even so, I consider a reading below +3.1 to be bearish. I require a reading of +5.6 or better to call this indicator bullish.

(3) This is the percentage of stocks ($8 and up) which are trading above their 50-day moving average. The rating of this percentage (bullish, bearish or neutral) is based on which way it's been moving recently -- up, down or sideways.

-KD, Saturday, August 7, 2010

Typical Client Portfolio

Company Name Stock
Symbol
Buy
Date
NetBuy
Price*
Current
Price
Weeks
Held
% of
Portfolio
Gain
(Loss)
Radiant Systems Inc. RADS 08/06/10 $16.40 $16.73 0.0 6.2% +2.0%
GT Solar International, Inc. SOLR 08/05/10 $7.78 $8.00 0.1 6.1% +2.9%
Priceline.com Inc. PCLN 08/04/10 $283.86 $295.25 0.3 5.1% +4.0%
Herbalife Ltd. HLF 08/04/10 $54.77 $56.49 0.3 5.1% +3.1%
Nova Measuring Instruments NVMI 08/03/10 $6.25 $6.25 0.4 4.8% -0.1%
DDi Corp. DDIC 08/02/10 $9.48 $9.42 0.6 5.0% -0.7%
Skyworks Solutions SWKS 07/30/10 $17.62 $18.30 1.0 5.1% +3.9%
Ancestry.com Inc. ACOM 07/30/10 $19.82 $20.02 1.0 4.8% +1.0%
Ultra Clean Holdings UCTT 07/27/10 $10.50 $10.74 1.4 5.1% +2.3%
Informatica Corp. INFA 07/26/10 $31.21 $30.99 1.6 4.9% -0.7%
Advanced Energy Industries AEIS 07/26/10 $17.20 $17.19 1.6 4.9% -0.0%
S&P Depositary Receipt SPY 07/22/10 $109.60 $112.39 2.1 20.9% +2.5%
Cytec Industries Inc. CYT 07/21/10 $50.06 $49.97 2.3 4.8% -0.2%
iGATE Corp. IGTE 07/19/10 $16.02 $16.31 2.6 4.9% +1.8%
Adtran Inc. ADTN 07/14/10 $31.03 $31.46 3.3 5.0% +1.4%
Cash 8.0%  
Total 100%  

* Buy prices shown are net after commissions.

Stocks Sold Over Past 13 Weeks

Company Name Stock
Symbol
Buy
Date
NetBuy
Price*
Sell
Date
NetSell
Price*
Weeks
Held
Gain
(Loss)*
S&P Depositary Receipt SPY 07/22/10 $109.60 08/05/10 $112.37 2.0 +2.5%
Old Dominion Freight ODFL 07/28/10 $40.52 08/05/10 $37.42 1.1 -7.7%
Cirrus Logic Inc. CRUS 07/20/10 $18.04 08/05/10 $19.71 2.3 +9.2%
S&P Depositary Receipt SPY 07/22/10 $109.60 08/04/10 $112.86 1.9 +3.0%
S&P Depositary Receipt SPY 07/22/10 $109.60 08/02/10 $112.66 1.6 +2.8%
S&P Depositary Receipt SPY 07/22/10 $109.60 07/30/10 $110.73 1.1 +1.0%
S&P Depositary Receipt SPY 07/22/10 $109.60 07/27/10 $111.35 0.7 +1.6%
Cyberonics Inc. CYBX 07/20/10 $21.69 07/27/10 $23.87 1.0 +10.1%
S&P Depositary Receipt SPY 07/08/10 $107.20 07/16/10 $106.63 1.1 -0.5%
S&P Depositary Receipt SPY 07/06/10 $103.73 07/16/10 $106.63 1.4 +2.8%
S&P Depositary Receipt SPY 06/28/10 $107.83 07/16/10 $106.63 2.6 -1.1%
Tibco Software Inc. TIBX 06/25/10 $12.82 07/06/10 $11.92 1.6 -7.1%
SMART Modular Technologies SMOD 06/18/10 $6.79 06/29/10 $6.02 1.6 -11.4%
iGATE Corp. IGTE 06/17/10 $13.90 06/29/10 $13.26 1.7 -4.6%
Entropic Communications ENTR 06/21/10 $6.41 06/29/10 $6.38 1.1 -0.5%
Deckers Outdoor Corp. DECK 06/17/10 $161.60 06/29/10 $143.38 1.7 -11.3%
Cirrus Logic Inc. CRUS 06/16/10 $15.53 06/29/10 $16.01 1.9 +3.1%
American Public Education APEI 06/17/10 $47.56 06/29/10 $44.36 1.7 -6.7%
S&P Depositary Receipt SPY 06/18/10 $111.71 06/25/10 $108.08 1.0 -3.2%
S&P Depositary Receipt SPY 06/16/10 $111.99 06/25/10 $108.08 1.3 -3.5%
S&P Depositary Receipt SPY 06/15/10 $111.85 06/25/10 $108.08 1.4 -3.4%
Avago Technologies Ltd. AVGO 06/16/10 $22.84 06/24/10 $21.11 1.1 -7.6%
S&P Depositary Receipt SPY 06/09/10 $107.29 06/09/10 $106.63 0.0 -0.6%
Maidenform Brands MFB 05/13/10 $25.03 05/20/10 $22.77 1.0 -9.0%
Local.com Corp. LOCM 04/26/10 $8.16 05/14/10 $8.26 2.6 +1.3%
Idexx Labs IDXX 04/23/10 $66.72 05/14/10 $64.22 3.0 -3.7%
S&P Depositary Receipt SPY 05/10/10 $116.63 05/13/10 $116.31 0.4 -0.3%
DG FastChannel, Inc. DGIT 05/06/10 $40.93 05/13/10 $41.28 1.0 +0.8%

* Buy and sell prices shown are net after commissions. This means that the gains/losses shown are also net after transaction expenses.

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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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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The Deen's List
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Santa Barbara, CA 93130
(800) 353-4990
deenslist@deencapital.com

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