Top Rocket Stocks for Week of Dec. 31

First up is Noven Pharmaceuticals(NOVN Quote - Cramer on NOVN - Stock Picks). The company announced late Wednesday that U.S. regulators tentatively approved its experimental drug Stavzor, which treats bipolar disorder, epilepsy and migraine headaches.

Despite this major piece of positive news, Noven shares actually finished down 1.4% on Thursday. Trading nearer its 52-week low than its low, with a short position of nearly 10%, $75 million in cash and zero debt, Noven is poised to move much higher now that the Food and Drug Administration has hinted that it will approve this drug.

Next up is EMC(EMC Quote - Cramer on EMC - Stock Picks). The stock is down more than 25% from its high in October of $25. Despite its insanely cheap valuations compared with spinoff VMware(VMW Quote - Cramer on VMW - Stock Picks) (of which it owns 86%), there are some concerns regarding EMC's financial services industry business.

However, Oracle's(ORCL Quote - Cramer on ORCL - Stock Picks) bullish earnings report two weeks ago is a big positive for the sector. Its strength from the financial services industry negates the concerns raised by Cisco Systems'(CSCO Quote - Cramer on CSCO - Stock Picks) report. This can be directly extrapolated as a positive for EMC given the percentage of its business in that area.

Last week EMC inked a deal to buy Document Sciences(DOCX Quote - Cramer on DOCX - Stock Picks) for $85 million. EMC has $5.5 billion in total cash, so this is a relatively small buy for the company. Also, management has a proven track record as they bought VMware for $600 million in 2003; currently VMware is worth $35 billion.

With a $2 billion stock-buyback plan and double-digit earnings growth since 2002, EMC is one of the cheapest plays going into earnings season.

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