Profit from "Window Dressing" as Quarter Ends (GPOR, CBB, DOLE)
Friday Marks End of Q3
Sep 26, 2012 3:25:26 AM PDT
Traders can book profits from money managers looking to buy the best performing stocks over the last quarter such as Gulfport Energy (NASDAQ: GPOR), Cincinnati Bell (NYSE: CBB) and Dole Food Company (NYSE: DOLE).
This is a phenomenon known as "window dressing." Money managers want to show in their reports to clients that they were savvy enough to buy the stocks that rose the most over the last quarter. This happens at the end of each calendar quarter.
Over the last quarter, Gulfport Energy is up more than 77%. For the same period, Cincinnati Bell rose more than 58%. Due to massive insider buying from the chief executive officer, Dole Foods jumped 64.75% for the last three months of market action.
The surging continued for the last week. Dole Foods rose another 1.59%. Cincinnati Bell was up 3.11%. Volume was strong for each.
Cincinnati Bell is now very close to its 52-week high. Dole Foods is close to its year high of $15.19 at $14.02. Gulfport Energy is well below its year high.
These stocks could continue to rally. There is no reason to avoid a stock with a rising share price if the fundamentals are solid. The "window dressing" at the end of a quarter is a good way to profit in the short term, however. If a stock has its ex-dividend date towards the end of a quarter in which it has risen sharply, that would be an ideal time to profit from "capturing the dividend."