Volume 4, Issue 1
September 19, 2005

Companies of the Week:
Large Cap:	Lyondell Chemical Company (NYSE: LYO)
Mid Cap:	Nordson Corporation (NASDAQ: NDSN) SERENA Software Inc (NASDAQ: SRNA)
Small Cap:	None
OPS Warning:	None

Large Cap Stock of the Week
Market Cap Over 3 Billion
Lyondell Chemical Company (NYSE: LYO, $27.65), with a market cap of $6.8 billion, is a Large Cap Stock of the Week. Lyondell Chemical Company engages in the manufacture and marketing of various intermediate and performance chemicals. It carries StockDiagnostics.com's best OPS Ranking of 1. This OPS Plus company has a trailing twelve-month OPS of $4.17, a 374.2% increase from a year ago. This company's trailing twelve-month EPS is $1.95. With a Cash Cycle Ratio of 2.1x, we consider this company to have high quality EPS. The current OPS Margin is 7.6%. The current P/E Ratio is 14.2x versus the P/OPS Ratio of 6.6x. From an OPS point of view, we consider this company an excellent value to its current price. Trailing twelve-month revenues are up 200.8%.

Mid Cap Stocks of the Week
Market Cap from 500 Million to 3 Billion
Nordson Corporation (NASDAQ: NDSN, $37.93), with a market cap of $1.3 billion, is a Mid Cap Stock of the Week. Nordson Corporation produces precision dispensing equipment that applies adhesives, sealants, and coatings to a range of consumer and industrial products during manufacturing operations. It carries StockDiagnostics.com's best OPS Ranking of 1. This OPS Plus company has a trailing twelve-month OPS of $3.51, a 13.8% increase from a year ago. This company's trailing twelve-month EPS is $1.93. With a Cash Cycle Ratio of 1.8x, we consider this company to have high quality EPS. The current OPS Margin is 15.4%. The current P/E Ratio is 19.6x versus the P/OPS Ratio of 10.8x. From an OPS point of view, we consider this company an excellent value to its current price. Trailing twelve-month revenues are up 9.7%.

SERENA Software Inc (NASDAQ: SRNA, $19.47), with a market cap of $800.9 million, is a Mid Cap Stock of the Week. SERENA Software, Inc. engages in the development, marketing, and support of software products for managing process and controlling change across the information technology environment. It carries StockDiagnostics.com's best OPS Ranking of 1. This OPS Plus company has a trailing twelve-month OPS of $1.90, a 68.0% increase from a year ago. This company's trailing twelve-month EPS is $0.72. With a Cash Cycle Ratio of 2.6x, we consider this company to have high quality EPS. The current OPS Margin is 32.6%. The current P/E Ratio is 27.0x versus the P/OPS Ratio of 10.2x. From an OPS point of view, we consider this company an excellent value to its current price. Trailing twelve-month revenues are up 71.2%.

Small Cap Stock of the Week
Market Cap Below 500 Million
None

OPS Warning of the Week
None

Update of Previous Picks: Top 5 Performers over the Last Week

Large Cap	Mid Cap	Small Cap
Cardinal Health, Inc. (CAH) AmerisourceBergen Corporation (ABC) Safeway Inc (SWY) IMS Health, Inc. (RX) ConocoPhillips (COP)	MEMC Electronic Materials Inc (WFR) United Online, Inc. (UNTD) Parametric Technology Corp (PMTC) The TriZetto Group, Inc. (TZIX) Guess?, Inc. (GES)	Sun Hydraulics Corp (SNHY) Netsmart Technologies Inc (NTST) The Keith Companies, Inc. (TKCI) Alliance Imaging, Inc. (AIQ) Multi-Color Corp (LABL)

Removed from Newsletter, as of Last Friday's Close, for the Following Reasons:

Change in OPS Profile	Poor Price Performance	Fully Valued
None	None	None

Current Stocks
View Current Newsletter Track Record

Large Caps	Mid Caps	Small Caps	Warnings
ABC ADSK AMAT AZN BEAS BR CAH CEN CMVT COP DRI DVN FCX HCA HMA INTC INTU LYO MSFT PFE PPL QLGC RX S SFA SLR SWY TXN	AVT BXG CGT CSGS CYMI DRIV ELX EMMS EPIC GES HAE HW ISSX ITG KFY KND LPNT MLHR MRX MYK NDSN NOVL PMTC PPD PRGS PSS RAD SE SRNA TSAI TZIX UNTD USPI WBSN WDC WFR	AIQ ANST APLX CLZR CMTL CMTL CPTV DRAM ESC ICCI LABL MOSS NANO NOVA NTST ODSY PIK PSTI PTC PWEI QSII SBGI SCUR SNHY SUNN TKCI WTT	TWP UTSI

Newsletter Editor
Richard McLean, Director of Research

Disclaimer
StockDiagnostics.com has a policy that prohibits all staff from buying or selling any newsletter stocks within 48 hours of adding or removing a stock from the newsletter list. In addition, StockDiagnostics.com does not receive commissions or any compensation other than subscription revenue.

This newsletter is provided as an information service only. The statements and opinions in this newsletter should not be construed as an offer or solicitation or recommendation to buy, sell or hold securities. Readers should remember that past performance is not necessarily an indicator of future performance and StockDiagnostics.com makes no express or implied guarantee as to future performance of any stock mentioned in this newsletter. StockDiagnostics.com accepts no liability for any loss arising from reliance on or use of this newsletter.