Ken Deen's THE AGGRESSIVE TRADER(tm) "Seeking double-digit profits in one to four months" BUY/SELL ALERT P.O. Box 4791 Vol. 1, No. 105 Santa Barbara, CA 93140 November 11, 1992 (805) 565-2039 1:00am New York Time CompuServe: 72020,2050 Stock+Options Account (editor's personal account): * Later today, after the market opens, I will BUY 200 Data Race Inc. (NASDAQ: RACE). Yesterday's close was 23 1/4. Stock-Only Account (editor's personal account): No trades DESI(tm) Account (a computer-simulated hypothetical account): * All 4,626 shares of Nature's Bounty Inc. (NASDAQ: NBTY) will be SOLD today at the low for the day. DESI(tm) Buy/Sell Signals (computer-generated): * SELL Nature's Bounty (NASDAQ: NBTY) on Wednesday Nov. 11. The lowest price on Nov. 11 will be used as a sell price for the purpose of tracking the performance of DESI(tm) signals. The DESI(tm) buy signal for this stock was on August 3 (see Vol.1 #74). The high price on Aug. 3 was 6 2/3 (after adjusting for a 3-for-1 split). Yesterday's low was 12 3/4, 91% higher! Data Race Inc. This stock is a new issue, having gone public barely a month ago. I do not normally buy new issues, because technical analysis does not apply to them. However, I am making an exception in this case, because of the superb sales and earnings growth, the relatively modest P/E, and the very high and increasing relative strength of both the stock and its industry group. First, let's look at the last four quarters of explosive growth: Quarter Ended Sales($mil) Earnings-per-share ------ ---------------- ------------------- Sep 30 9.5 vs 4.0 +139% 0.31 vs 0.15 +107% Jun 30 7.8 vs 2.5 +220% 0.27 vs 0.02 +1250% Mar 31 5.5 vs 2.1 +163% 0.16 vs 0.02 +700% Dec 31 4.4 vs 1.9 +130% 0.12 vs 0.02 +500% The P/E stands at 27, which is not at all high given such a very high growth rate. The company ranks among the fastest growing companies in the country, with a 5-year annualized earnings growth rate of 104%. The stock's earnings-per-share-growth rank is 99, the highest possible, according to Investor's Business Daily. The stock's relative strength rank is 90; the stock has soared over 50% since going public. The ratio of upside to downside volume is a very high and very bullish 4.5, according to Daily Graphs. The "computer peripheral equipment" group is very strong and growing stronger; the group relative strength rank has climbed from 88 two weeks ago to 97 yesterday. (Another of my favorite stocks, Media Logic, is also in this group.) Data Race, located in San Antonio, Texas, is a leading producer of high performance data communication products for portable computers. ---------------------------------------------------------------------------- *** To all who download this newsletter *** I invite you to send me your CompuServe ID to receive these alerts by e-mail. You will get them faster. I do not charge for this service. In addition, I invite you to send me your paper mail address. I will then send you a paper mailing once a month. This is the only way to receive the monthly status reports, which are chock-full of informative charts, graphs, and tables. I pay the postage. The monthly paper mailings also include hardcopy with stock charts of these buy/sell alerts. -Ken Deen ---------------------------------------------------------------------------- This issue of The Aggressive Trader(tm) may be copied and distributed freely. Please pass it around! The Aggressive Trader is edited and published at irregular intervals, but at least monthly, by Kenneth L. Deen ("Ken Deen"), P.O. Box 4791, Santa Barbara, California 93140, (805) 565-2039. 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. 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 Kenneth L. Deen. Copyright (c) 1992 Kenneth L. Deen. -END-