Top Rocket Stocks for Week of Feb. 11

Stock quotes in this article: SUG , NYX , SJM , MSFT , AA , CSCO , GOOG  

Updated from 6:15 a.m. EST

At the start of each week I look to find stocks that can rise in the coming week, no matter which way the market moves. Even if we have another 400-point downswing in the Dow, hundreds of stocks will close the day higher, and it's my job to help you uncover the stocks most likely to do so.

This week's Rocket Stocks portfolio includes names like Cisco (CSCO Quote), Alcoa (AA Quote) and Microsoft (MSFT Quote). But before we look at this week's picks, let's review how last week's picks fared.

  • Google (GOOG Quote): Up 1.5% on the week.
  • Plains Exploration & Production (PXP Quote): Down 3% on the week despite the strong move in oil.
  • Local.com (LOCM Quote): Down 3% on the week.
  • Yum! Brands (YUM Quote): Down 4% on the week after the packaged foods company reported solid earnings and international growth. However, revenue was pressured by high chicken and cheese costs.
  • Dell (DELL Quote): Down 4% on the week.
  • Manitowoc (MTW Quote): Down 4.2% on the week despite beating Wall Street earnings estimates.
  • Inverness Medical (IMA Quote): Down 7.3% on the week.
  • Archer Daniels Midland (ADM Quote): Down 10% on the week despite strong earnings.
  • Ram Holdings (RAMR Quote): Down 10% on the week as the company seeks "a number of alternatives to improve its capital position."
  • Aluminum Corp. of China (ACH Quote): Down 14% on the week after teaming up with Aloca (AA Quote) to buy a nearly 10% stake in Rio Tinto (RTP Quote).

Now let's take a look at the Rocket Stocks for the Week of Feb. 1-15.

First up this week is Southern Union (SUG Quote), which gathers and sells natural gas in the U.S. In the beginning of January, Jim Cramer said that he's been expecting natural gas to catch on for years, particularly since natural gas is basically the same price it's been for the past two years.

Southern Union owns 50% of the Florida Gas pipeline. Florida is a great market to be in because its population is growing very quickly as America's aging baby boomers retire to warmer climates. Florida's summertime weather makes the Florida Gas pipeline highly desirable, as air conditioners and large commercial freezers use an abundant supply of natural gas to keep them working.

Southern Union also owns the largest liquefied natural gas import terminal in the U.S. This terminal has sent out capacity of 1.8 billion cubic feet of natural gas per day.

Despite posting in November a third-quarter earnings beat and increasing its annual dividend by 50% to 60 cents a share, shares of Southern Union have been in a horrible slide. The stock hit new 52-week lows on Jan. 22 and 23.

With organic growth projects and potential for continued strong earnings Southern Union is very attractive at current prices.

Also worth looking at is New York Stock Exchange (NYX Quote), a stock that is flirting with its 52-week low. The exchange last week reported in-line earnings but also disappointing delays in expected cost savings from recent acquistions. There's been a lot of discussion on Stockpickr.com about this stock's slide, but let's take a step back and look at the basic fundamentals.

NYSE has EBITDA of $1 billion, and that number is expected to see a double-digit rise over the next year. Its enterprise-value-over-EBITDA multiple of just 11 puts it in potential buyout territory. Now I don't believe NYSE will get acquired, but this EBITDA multiple should help financing issues with the AMEX.

One of NYSE Euronext largest holder is mega hedge fund Atticus Capital, which holds some 15 million shares of NYSE stock.

For more detailed analyses and the rest of this week's picks, check out the Rocket Stocks for the Week of Feb. 11-15.

As always, to find the snapbacks and potential breakouts on a regular basis, check out these Stockpickr portfolios, which I use in my own research each week:

  • Today's Hot List: This daily list is a must-view every midday to see what stocks are making the biggest moves and why.
  • Always check the Biggest Percentage Losers, a list of stocks that lost big the day before, because they can snap back hard.

    When you check this list on Stockpickr, you can see which stocks are owned by the quality hedge funds and mutual funds. Pay attention to those. They will be buying at the lower prices, so you should be also.

  • Ditto for the 52-week-low list. You must check the above two lists every day if you hope to find volatile stocks.
  • Biotech Short Squeezes: Dendreon(DNDN Quote) and others can often be found in this category.
  • Stocks Rising on Unusual Volume: These are potential breakout stocks.
  • Stockpickr's System Trades of the Day: These are trades triggering that day in various back tested trading systems we've developed.
  • Stocks With Unusual Option Activity: Perhaps someone knows something?
  • Latest Activist Situations: These are beaten-down stocks that hedge funds are accumulating shares of and demanding change in. Believe me, these hedge funds piggyback each other. And once they start rocking the boat, things happen quickly. This should be on your must-view list.

One final place to frequent is the Answers section on Stockpickr, where ideas such as those presented in this article are thrown around daily.

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At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.

James Altucher is president of Stockpickr LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for the Financial Times and the author of Trade Like a Hedge Fund, Trade Like Warren Buffett and SuperCa$h. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback; click here to send him an email.

TheStreet.com has a revenue-sharing relationship with Trader's Library under which it receives a portion of the revenue from purchases by customers directed there from TheStreet.com.

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