Stockpickr: This Week's Rocket Stocks

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So much liquidity is hitting both this market and the global markets in general that the inevitable is happening: All of the low-hanging fruit is getting acquired.

As I've been doing each week since the start of TheStreet.com's Beat the Street contest, I've compiled a list of stocks for this week that I believe have the catalysts to send them soaring in coming days. For this week's portfolio of potential rocket stocks, however, I focused on names that might be potential takeover targets.

To compile the portfolio, Contest Stocks V, I gleaned these ideas from other Stockpickr portfolios:

• Top 20 Most Volatile Stocks on Earnings Day, the stocks that have historically risen, or fallen, the most on earnings day. Earnings season is still in full force this week.
• Top Nasdaq Short Interest, the major Nasdaq stocks and their corresponding short interest.
• Top 10 Potential Short Squeezes, a list of stocks with high short interest and high insider buying.
• Top Tech Takeover Targets, a list of technology companies that appear to be in the sweet spot to get acquired.

I also made use of Stockpickr's Mean Reversion System to find stocks that have triggered the system but where we can still get in below the system price. Basically, if a stock falls more than 10% below its 200-day moving average, buy and hold until it goes above 5% below its 200-day moving average. The portfolio link provides the historical results of the system, but it's been reliable in bull and bear markets.

Our first stock, BEA Systems(BEAS Quote), has been triggering the Mean Reversion System. With BEA, the system has worked nine out of 12 occurrences since 1998 for an average return of 5% per trade. The trade this time has been open since May 1 at $11.14, providing an opportunity to get a better price than the system.