Top Rocket Stocks: Coldwater Creek

Updated from 5:34 a.m. EDT

Don't even think about playing in the Beat the Street trading contest if you're going to trade the Wal-Marts (WMT) or Microsofts (MSFT) of the world. While I believe both could be solid long-term investments, the key in a competitive stock-picking contest is to focus on two main strategies: snapbacks and breakouts.

Hedge funds that focus on short-term trading have modeled out the various types of snapbacks and breakouts that occur. For this week, I've set up a Rocket Stocks portfolio that focuses on the stocks most likely to succeed for the week.

Last week was brutal, with the market dropping over 400 points for the week, but this recent decline in stocks has created some great opportunities.

Before I talk about this week's Rocket Stocks, let's see how last week's picks performed.

• Echelon (ELON): Finished the week down 10%.
• CDC (CHINA): Finished the week down 13%.
• China GreenTech (GRRF): Finished the week down 15%.
• China Sunergy (CSUN): Finished the week down 19%.
• Ensco (ESV): Finished the week down 3%.
• Anadarko (APC): Finished the week down 2%.
• Goldman Sachs (GS): Finished the week down 7%.
• Tesoro (TSO): Finished the week down 5%.
• Eagle Bulk Shipping (EGLE): Finished the week down 8%.
• Ram Energy Resources (RAME): Finished the week up 29%.

Now let's take a look at the Rocket Stocks for the Week of May 27-May30.

First up this week is China Nepstar (NPD), which could snap back into the company's earnings on Wednesday.

China Nepstar operates as one of the largest retail drugstores in mainland China, providing over-the-counter drugs, supplements and various personal care products.

The company has $400 million in cash and zero debt, and its largest shareholder is Goldman Sachs, which owns 25% of the company. Shares are down a whopping 30% for the year, from a high of $18 or so.

With the Chinese middle class caring more and more about psychical health, coupled with recent environmental issues, shares of China Nepstar could move much higher.

1 2 Next › Last »