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: +55.5% for the 60 months ending August 27, 2010 (vs. -2.2% for the S&P)
For complete performance data, click here
Vol.8 #193 Saturday, August 28, 2010 11:59AM 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 27, 2010 -1.9% * -3.3%
12 months (Aug 27, 2009 to Aug 27, 2010) +6.0% * +5.2%
24 months (Aug 27, 2008 to Aug 27, 2010) +2.4% * -13.0%
36 months (Aug 27, 2007 to Aug 27, 2010) +3.2% * -22.4%
48 months (Aug 27, 2006 to Aug 27, 2010) +22.5% * -10.6%
60 months (Aug 27, 2005 to Aug 27, 2010) +55.5% * -2.2%

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

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Market Commentary

Market Stance: BEARISH (since August 11, 2010)

Deen Capital performance last week was on par with the S&P -- both slipped -0.6%. Year-to-date, we're now -1.9%, still outperforming the S&P's -3.3%.

Persistently high unemployment, a very weak housing market, tepid economic growth, and fear of a double-dip recession continue to weigh on stocks. My indicators remain overall bearish. I continue to maintain a high-cash low-risk portfolio.

At the same time, I must say that I do see technical hints of a possibly important market reversal. We had a solid rally on Friday on strong volume off of an important support level. I think there's a good chance this rally could spill over into next week. But how high will it take us? How long will it last? Friday morning, stocks were down, at or near a 7-week low, before rallying. Might that have been a significant bottom?

I rather suspect not. Too little evidence at this time. Nevertheless, I did buy some SPY (S&P 500) on Friday. Remember, my goal is to outperform the S&P. I am constantly weighing our risk of underperforming if the market goes down versus our risk of underperforming if the market goes up. The latter risk increased significantly on Friday, in my opinion, and I view this buy as a small step in the direction of reducing that "risk". We're still 48% in cash, still less volatile than the S&P. That "risk" is reduced, but still present.

My Three Primary Technical Indicators:

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

Performance of Recent Stock Picks:  -3.6 BEARISH       -1.4 BEARISH (2)

Market Internals:                    49% BEARISH        52% NEUTRAL (3)

-----------------------------------------------------------------------
Market's Overall Technical Rating:       BEARISH            BEARISH

Stocks:Cash ratio (average):              28:72              52:48

(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 28, 2010

Typical Client Portfolio

Company Name Stock
Symbol
Buy
Date
NetBuy
Price*
Current
Price
Weeks
Held
% of
Portfolio
Gain
(Loss)
S&P Depositary Receipt SPY 08/27/10 $106.60 $106.86 0.0 29.9% +0.2%
VeriFone Systems, Inc. PAY 08/26/10 $24.45 $24.52 0.1 5.0% +0.3%
Radiant Systems Inc. RADS 08/12/10 $15.84 $17.18 2.1 5.5% +8.5%
Nanometrics Inc. NANO 08/12/10 $12.59 $13.65 2.1 5.6% +8.5%
GT Solar International, Inc. SOLR 08/05/10 $7.78 $7.70 3.1 6.3% -1.0%
Cash 47.7%  
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)*
ZST Digital Networks, Inc. ZSTN 08/17/10 $7.11 08/23/10 $5.96 0.9 -16.2%
Industrial Svcs of America IDSA 08/18/10 $16.67 08/23/10 $14.14 0.7 -15.1%
S&P Depositary Receipt SPY 08/17/10 $109.98 08/20/10 $107.23 0.4 -2.5%
Fossil Inc. FOSL 08/10/10 $45.71 08/16/10 $42.59 0.9 -6.8%
Ballantyne Strong, Inc. BTN 08/09/10 $9.32 08/13/10 $8.38 0.6 -10.1%
Ancestry.com Inc. ACOM 07/30/10 $19.82 08/13/10 $19.02 2.0 -4.0%
Ultra Clean Holdings UCTT 07/27/10 $10.50 08/11/10 $9.68 2.1 -7.8%
Skyworks Solutions SWKS 07/30/10 $17.62 08/11/10 $17.16 1.7 -2.6%
Radiant Systems Inc. RADS 08/06/10 $16.40 08/11/10 $15.74 0.7 -4.0%
Priceline.com Inc. PCLN 08/04/10 $283.86 08/11/10 $287.63 1.0 +1.3%
Nova Measuring Instruments NVMI 08/03/10 $6.25 08/11/10 $5.66 1.1 -9.5%
Informatica Corp. INFA 07/26/10 $31.21 08/11/10 $29.23 2.3 -6.4%
iGATE Corp. IGTE 07/19/10 $16.02 08/11/10 $15.42 3.3 -3.7%
Herbalife Ltd. HLF 08/04/10 $54.77 08/11/10 $55.12 1.0 +0.6%
DDi Corp. DDIC 08/02/10 $9.48 08/11/10 $8.24 1.3 -13.1%
Cytec Industries Inc. CYT 07/21/10 $50.06 08/11/10 $47.96 3.0 -4.2%
Advanced Energy Industries AEIS 07/26/10 $17.20 08/11/10 $15.93 2.3 -7.4%
Adtran Inc. ADTN 07/14/10 $31.03 08/11/10 $30.27 4.0 -2.5%
S&P Depositary Receipt SPY 07/22/10 $109.60 08/10/10 $112.30 2.7 +2.5%
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 $111.29 0.7 +1.5%
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%

* 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.

Contact Us

The Deen's List
PO Box 30925
Santa Barbara, CA 93130
(800) 353-4990
deenslist@deencapital.com

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