Ken Deen's THE AGGRESSIVE TRADER(tm) "Seeking double-digit profits in one to four months" ALERT Vol. 2, No. 35 P.O. Box 4791 February 25, 1993 Santa Barbara, CA 93140 10:50am New York Time CompuServe: 72020,2050 (805) 565-2039 Internet: 72020.2050@compuserve.com Market Stance: Bearish *** ALERT ITEMS: *** Marginable Account (editor's personal account): * SELL 50 Cummins Engine Co. (NYSE: CUM). Today I sold all 50 shares at 85 5/8. I had bought these shares Feb. 12 at 85 1/8 (Vol.2 #28) After this trade, the account value is $37,498. Of that, $33,810 is long stocks and $3,688 is cash. IRA Account (editor's personal account): * SELL 50 Cummins Engine Co. (NYSE: CUM). Today I sold all 50 shares at 85 5/8. I had bought these shares Feb. 12 at 85 1/8 (Vol.2 #28) After this trade, the account value is $40,984. Of that, $31,848 is long stocks and $9,136 is cash. *** TRADING IDEA ITEMS (There will be no followup on these ideas): *** Breakouts (The following stock(s) have excellent sales and earnings growth, and have just broken out from a six-week or longer base.): * Applied Materials Inc. (NASDAQ: AMAT, $39.38) EPS:95, RS:86, GR:7->5(*), PE:31, Electronic Components - Semiconductors Climactic Selloff/Rebounds (The following stock(s) have excellent sales and earnings growth, are in long-term uptrends, and have just had a climactic selloff-and-rebound.): * Advanta Corp. Class A (NASDAQ: ADVNA, $34.75) EPS:99, RS:81, GR:34->70(*), PE:42, Financial/Business Services * Chrysler Corp. (NYSE: C, $38.50) EPS:68, RS:94, GR:103->34(*), PE:26, Automobile - Mfg (Vol.1 #71) * Outback Steakhouse Inc. (NASDAQ: OSSI, $26.00) EPS:99, RS:73, GR:27->65(*), PE:51, Retail - Food & Restaurants * Data Race Inc. (NASDAQ: RACE, $20.13) EPS:99, RS:54, GR:12->14(*), PE:20, Computer Periph Eqpmt (Vol.2 #14) * Healthsource Inc. (NYSE: HS, $28.88) EPS:95, RS:59, GR:8->145(*), PE:21, Medical-Health Maint. Org. Cummins Engine Co. I am continuing to adjust my portfolio in the wake of my shift to a bearish market stance on Feb. 17 (see Vol.2 #30). As I have written before, my market timing program gives a market sell signal about once a year. When it does, my goal is no longer a "double-digit profit in one to four months" for the stocks I bought prior to the sell signal; my goal becomes "preservation of capital", or "damage control". I'd rather be in cash at this time. Yesterday's market action was very constructive, but my proprie- tary market timing program remains bearish. I am taking advantage of the recent rise in Cummins stock to raise some cash at a breakeven price on this recent purchase. Announcement: (*) Improved Group Ranking The manner in which group strength is reported has recently changed. Every Wednesday, Investor's Business Daily lists all 197 industry groups (plus the S&P 500 and S&P Industrial indices) ranked in order of percent change over the prior six months. This ranking is on a scale of 1 to 199, with #1 being the best performing group and #199 the worst. An entry, for example, of GR:37->28, ..., Computer Software means that the ranking of the Computer Software group is 28, as of the most recent Wednesday. The first number, 37, is the average rank over the preceding eight Wednesdays. From this information, one may infer that the computer software group is performing well (28 is a relatively low number on the 1-to-199 scale), and also that the software group appears to be gaining favor (28 is an improvement over the prior 8-week average of 37). ---------------------------------------------------------------------------- Previous Alert: Vol.2 #33 (Feb. 23, 1993) "Trading Ideas" (less important). You may elect to receive Alerts only, or both Alerts and Trading Ideas. ---------------------------------------------------------------------------- *** To all who download this newsletter *** On April 1, 1993, this newsletter will be available only for a subscription fee. There will be no further uploads on or after that date. From now through March 31, 1993, I am offering at-cost subscriptions (very very inexpensive) by e-mail, fax, and postal mail. These are alternatives to downloading. Also, Monthly Status Reports are available in printed form only. These are chock-full of informative charts, graphs, and tables reviewing newsletter performance and explaining the DESI(tm) System. I invite you to send me your postal mail address so that I may send you a Monthly Status Report and an at-cost subscription form. -Ken Deen ---------------------------------------------------------------------------- The Aggressive Trader is edited and published at irregular intervals, but at least monthly, by Deen Capital Management, Inc., P.O. Box 4791, Santa Barbara, California 93140, (805) 565-2039. Deen Capital Management, Inc., its principals, employees, affiliates, and/or clients may have positions in securities recommended herein and may make additional purchases and/or sales in these securities. Recommendations made in this publication involve a high degree of risk and may result in losses. Readers should not assume that recommendations will be profitable or will equal past performance. The information in this publication is collected from sources believed to be reliable, but neither the accuracy nor the completeness of this information is guaranteed. The Aggressive Trader, Deen Earnings Surprise Index, DESI, and DESI-3 are all trademarks of Deen Capital Management, Inc. Copyright (c) 1993 Deen Capital Management, Inc. -END-