Ken Deen's THE AGGRESSIVE TRADER(tm) "Seeking double-digit profits in one to four months" BUY ALERT P.O. Box 4791 Vol. 1, No. 115 Santa Barbara, CA 93140 November 25, 1992 (805) 565-2039 9:40am New York Time CompuServe: 72020,2050 *** Note: Vol.1 #114 is the monthly report for October. I did not upload it. *** If you send me your paper mailing address, I will mail you a copy. -Ken Stock+Options Account (editor's personal account): * BUY Arrow Electronics, Inc. (NYSE: ARW). This morning I bought 200 ARW at 27 3/4. * BUY Intervoice Inc. (NASDAQ: INTV). This morning I bought 300 INTV at 16 1/2. Stock-Only Account (editor's personal account): No trades DESI(tm) Account (a computer-simulated hypothetical account): No trades DESI(tm) Buy/Sell Signals (computer-generated): None Other Trading Ideas: The following stocks are recommended for purchase. Each has excellent sales and earnings growth, and each has had a recent drop in price and now appears poised to resume its long-term uptrend: * American Colloid Co. (NASDAQ: ACOL, $24.50) * Biogen Inc. (NASDAQ: BGEN, $44.88) * Broderbund Software (NASDAQ: BROD, $38.50) * Hauser Chemical Research (NASDAQ: HAUS, $23.75) * Leucadia National Corp. (NYSE: LUK, $68.50) * Pyxis Corp. (NASDAQ: PYXS, $40.63) * SCI Systems Inc. (NASDAQ: SCIS, $15.50) * Sybase Inc. (NASDAQ: SYBS, $43.50) * Syquest Technology, Inc. (NASDAQ: SYQT, $24.25) Arrow Electronics, Inc. The story here is dramatic and accelerating sales and earnings growth, a very strong group, a low P/E, and a brief selloff that climaxed last Wednesday, setting the stage for a resumption of the long-term uptrend. Here are the last four quarters of sales and earnings growth. Note the acceleration in the growth rate: Quarter Ended Sales($mil) Earnings-per-share --------- ------------------- ------------------- Dec 31 91 346.6 vs 236.2 +47% 0.32 vs 0.06 +433% Mar 31 92 378.7 vs 236.8 +60% 0.38 vs 0.15 +153% Jun 30 92 382.0 vs 233.1 +64% 0.41 vs 0.16 +156% Sep 30 92 407.4 vs 227.2 +79% 0.47 vs 0.10 +370% As of yesterday's close, the stock was selling for 17.4 times earnings. This makes the stock a great bargain! The stock is in a long-term uptrend, which it is now poised to resume after being hit by profit-taking the past two weeks. The selloff appears to have climaxed last Wednesday. As of yesterday's close ($27.50), the stock was 8.7% off its high of $30.13 set on Nov. 11. Arrow is in the "Electronics Parts Distributors" group, which is very much in favor on the Street. The group relative strength ranking is 99, the highest possible. Arrow's earnings-per-share ranking is also 99, and its relative strength ranking is 95. The next earnings report is due Feb. 26. Arrow Electronics, located in Melville, New York, is the world's largest industrial distributor of electronic components and computer products. Intervoice Inc. Here we have very fast sales and earnings growth, a very strong group, a low P/E, and a breakout yesterday in heavy trading from an 8-week base. Here are the numbers from the last four quarters: Quarter Ended Sales($mil) Earnings-per-share --------- ---------------- ------------------- Nov 30 91 8.9 vs 6.7 +33% 0.16 vs 0.19 -16% Feb 29 92 9.6 vs 4.8 +103% 0.15 vs 0.03 +400% May 31 92 10.4 vs 5.5 +88% 0.18 vs 0.01 +1700% Aug 31 92 10.9 vs 6.2 +76% 0.22 vs 0.01 +2100% At yesterday's close of $16.13, the stock is selling for 23 times earnings; that's very modest indeed given the company's growth rate. Yesterday, the stock broke out of an 8-week base on heavy volume: almost six times the daily average number of shares changed hands. The next earnings report is expected on January 9. The company is in the hot "Computer Software" group. On Monday, this group had a relative strength ranking of 95, up from 92 four weeks earlier. The company's earnings-per-share ranking is 99, and its relative strength ranking is 93. Intervoice, located in Dallas, Texas, designs and sells systems which allow users to access a computer database from a touch-tone telephone. All rankings in today's alert (earnings-per-share, relative strength, and group relative strength) are from Investor's Business Daily. ---------------------------------------------------------------------------- *** 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-