Beat the Street

Top Rocket Stocks for Week of March 24

03/24/08 - 11:01 AM EDT


Adjusted EBIT margins went from 7.4% to 13.1% from 2006 to 2007. Robbins & Myers has beaten earnings estimates six out of the last seven earnings reports, and last quarter the company raised its 2008 guidance by 25 cents a share.

Weekly Catalyst: With 60% of its revenue coming from overseas, Robbins & Myers is greatly aided by a positive currency conversion rate. Robbins & Myers is also an indirect play on rising oil with most of its end-market customers' business based on $40-a-barrel oil. With oil trading at 2.5 times that level, the company could deliver a huge beat.

One other fact to note is that there's a massive 18% short position on Robbins & Myers shares. That large short position gives the stock an even greater potential of moving much higher on an earnings upside surprise.

For more detailed analysis and the rest of this week's picks, including National Oilwell Varco NOV, Verizon VZ and Baidu BIDU, check out the Rocket Stocks for the Week of March 24-28.

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 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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