Beat the Street

Top Rocket Stocks for Week of March 24

03/24/08 - 11:01 AM EDT


Updated from 7:13 a.m. EDT

With so much liquidity hitting this market coupled with the fact that stocks in general are cheap, an inevitable snapback rally happened.

Since the start of the Rocket Stocks column, I've each week compiled a list of stocks that I believe have the catalysts to send them soaring in the coming days.

But before we get to this week's Rocket Stocks portfolio, let's take a look at how last week's picks fared.

  • Goldman Sachs GS: Up 26.5% on the week after beating analysts' earnings estimates Tuesday.
  • Level 3 Communications LVLT: Up 8.1% on the week as a pure snapback play.
  • Tesoro TSO: Up 3.7% on the week.
  • UltraShort Oil & Gas ProShares DUG: Up 3.4% as oil fell 6% on the week.
  • Gilead GLD: Up 2.1% on the week.
  • Enzon Pharmaceuticals ENZN: Up 2% on the week.
  • Aluminum Corp. of China ACH: Up 0.5% on the week after reporting lower-than-expected earnings Tuesday.
  • Hollywood Media HOLL: Down 0.8% on the week.
  • Market Vectors Global Agribusiness ETF MOO: Down 3.4% as agricultural stocks lagged the overall market this week.
  • Southern Union SUG: Down 4.3% on the week as natural gas prices fell.

Now let's look at some of the picks from this week's Rocket Stocks.

First up this week is Robbins & Myers RBN, a diversified machinery and oil pumping company that is set to report fiscal second-quarter earnings on Thursday.

Robbins & Myers is divided into two main business platforms:

  1. Fluid Management supplies Robbins & Myers with a substantial part of its total revenue. Fluid management, especially its pressure pumping systems, is essential in keeping oil rigs squeaky clean, allowing them to pump as much oil as they physically can. With oil at record prices, it's only natural to assume this part of the business is booming.
  2. Process Solutions deals with the chemical and pharmaceutical sectors. Its Romaco division, which has been very volatile in the past, saw large orders at the beginning of the first quarter. Most analysts have yet to add Romaco's earnings potential into their overall estimates. Once they see a second quarter of steady growth and orders in Romaco, analysts are likely to boost their estimates.

While weaker industrial goods orders may slow down some of its domestic sales, 60% of the Robbins & Myers' total revenue comes from outside the U.S, making this slowdown hardly an issue. Also, the dollar is 12% weaker since the company last reported earnings.

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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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