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Please read carefully our disclaimers at the end of this newsletter. Market Stance: BEARISH (since August 11, 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 Industrial Svcs of America (IDSA)
* Buy prices shown are net after commissions and fees. Today, Wednesday, August 18, 2010, I bought IDSA, for both client and my personal accounts. Industrial Services of America, Inc. provides ferrous and non-ferrous scrap metal recycling and waste management services in the United States and Canada. This stock is a component of the IBD 100 Index. ("IBD" = "Investor's Business Daily") Here's why I bought this stock: + Strong stock takes a dip. This stock has risen sharply since the end of February, from $6.70 on Feb 26 to $20.73 on Aug 3. Average volume has increased 15-fold over this time frame -- mostly on the buy side, obviously. Then the stock took a dip, closing at $15.98 last Friday. I suspect this dip represents 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: +177%, +255%, +206%, and, most recently, for the quarter ended June 30, +137% to $92.8 million. + Excellent recent earnings-per-share growth. Here are the quarterly EPS figures for the last eight quarters:
Sep 09 vs Sep 08: 37c vs 24c Dec 09 vs Dec 08: 24c vs (21c) Mar 10 vs Mar 09: 27c vs 12c Jun 10 vs Jun 09: 36c vs 17c + Strong and rising earnings-per-share estimates: According to recent data from First Call, the consensus earnings estimate for 2010 is $1.36, revised upward from $1.17 90 days ago (and up from 2009 actual earnings of 91c); and the consensus estimate for 2011 is $1.91, revised upward from $1.82 90 days ago. + Valuation: At 9 times next year's estimated earnings, the stock is still, even after the big runup since February cited above, very attractively priced. + The company's industry group ("Pollution Control") is ranked #62 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, Wednesday, August 18, 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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