“Window Dressing” is the term pertaining to how fund managers shuffle their holdings at the end of each quarter to make their portfolio appear at a glance to be holding winning stocks. Thus, it is wise to look at which stocks are winning stocks that look fundamentally sound. Thus, these stocks may be the most likely to benefit from “Window Dressing” and may be good holdings for 2012.
(Click charts to expand)
ATA (ATAI) - $8.77
The computer-based testing service company in the People’s Republic of China has a PEG of 0.79. Forward PE is 15.95. Number of shares sold short fell by about half that of the prior month.
Cabot Oil & Gas (COG) - $77.89
With approximately 2,761 billion cubic feet of natural gas equivalents as December 31, 2010, the company should do well. Plus, the Appalachian basin has been hot ever since the purchase of Atlas Energy. PEG is 1.63. Forward PE is 30.79. Number of shares sold short fell from 3.69 million in the prior month to 3.59 million.
Jazz Pharmaceuticals (JAZZ) - $38.41
The maker of Xyrem, a sodium oxybate oral solution for the treatment of both cataplexy and excessive daytime sleepiness in patients with narcolepsy, has a PEG of 0.35. Forward PE is 11.30. Number of shares sold short rose from 1.44 million in the prior month to 1.53 million.
Questcor Pharmaceuticals (QCOR) - $42.86
The biopharmaceutical company, which provides prescription drugs for the treatment of auto-immune diseases, has a PEG of 0.86. Forward PE is 22.32. Number of shares sold short rose from 4.98 million in the prior month to 5.16 million.
Stamps.com (STMP) - $26.03
The provider of online postal services has a PEG of 1.04. Forward PE is 19.57. Number of shares sold short fell from 1.52 million in the prior month to 1.50 million.
Ulta Salon, Cosmetics & Fragrance (ULTA) - $64.16
With 21,000 beauty products, the chain is growing swiftly. The stock has a PEG of 1.53. Forward PE is 28.26. Number of shares sold short rose from 1.92 million in the prior month to 2.2 million.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.