Ken Deen's THE AGGRESSIVE TRADER(tm) "Seeking double-digit profits in one to four months" BUY ALERT 1339 Virginia Rd. Vol. 1, No. 83 Montecito, CA 93108 September 11, 1992 (805) 565-2039 10:30am EDT CompuServe: 72020,2050 Stock+Options Account: No trades Stock-Only Account (formerly "Model Portfolio"): No trades DESI Trading System(tm): No trades Other Trading Ideas: Recommended for purchase: National Semiconductor (NSM, $12.00) The DESI-3(tm) timing indicator is GREEN for Sept. 11. Market Commentary The strong rally led by growth stocks I have been predicting appears to be getting underway. Yesterday's 1.1% gain in the NASDAQ Composite beat the 0.9% gain in the Dow, and occurred on very heavy volume. Many growth stocks are under-valued right now, having been beaten down severely during the first half of 1992 when money was flowing into cyclical stocks. I see the market, at least for growth stocks, as fairly low-risk right now, because the NASDAQ Composite is in a bullish recovery configuration, climbing on high volume days and retreating on lighter volume, and because there is so much pessimism about the economy and the market. Market tops occur when everyone is giddy with optimism; market bottoms occur when gloom and doom is in the air. Bull markets "climb a wall of worry", and these days worry abounds. As for my personal accounts, I am not buying today because I am waiting for the next DESI(tm) buy, which may not be until October when third-quarter earnings start coming in. Recommended for purchase: National Semiconductor (NSM, $12.00) Yesterday, NSM reported earnings of 17 cents a share vs. a loss of $1.64 a year ago. In response, the stock gapped up at the open, and closed up 7/8 at 12 on extremely heavy trading volume -- six times average turnover and the heaviest daily volume in seven months. Yesterday's action also represents a technical breakout to a 4-year high, after a 7-month basing formation. Its Investor's Business Daily Earnings-per-Share Rank is 95, and its IBD Relative Strength is 92. According to Investor's Business Daily, analysts are projecting a turnaround from a loss of $1.24 in fiscal 1992 (which ended in May) to a profit of 85 cents in FY'93 and $1.20 in FY'94. A graph of National Semiconductor stock appears on page 6 of today's Investor's Business Daily. ---------------------------------------------------------------------------- The Aggressive Trader(tm) is edited and published at irregular intervals, but at least monthly, by Kenneth L. Deen ("Ken Deen"), 1339 Virginia Road, Montecito, California 93108, (805) 505-2039, and is distributed free of charge to all interested parties. Ken Deen reserves the right to begin charging a subscription fee at any time. Ken Deen, his employees, affiliates, and/or clients may have positions in securities recommended herein and may make additional purchases and/or sales in these securities. Ken Deen frequently reveals in this publication the holdings, trading activity, and performance of certain of his personal brokerage accounts. However, he reserves the right to discontinue this practice at any time without notice. Recommendations made in this publication involve risk and may result in losses. Readers should not assume that recommendations will be profitable or will equal past performance. Neither The Aggressive Trader(tm) nor Ken Deen shall be liable in any manner for losses of any kind. The information in this publication is collected from sources believed to be reliable, but neither the accuracy nor the completeness of this information can be guaranteed in any way. Reporduction in whole or in part without the express written consent of the editor is strictly prohibited. Deen Earnings Surprise Index, DESI, DESI-3, and DESI Trading System are all trademarks of Kenneth L. Deen. Copyright (c) 1992 Kenneth L. Deen. -END-