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Top Rocket Stocks for Week of April 21

International Coal has the potential to move higher.

Updated from 6:59 a.m. EDT

This week's

Rocket Stock portfolio

features various momentum stocks that have easy triggers in this volatile market.

The key to choosing rocket stocks, which happen to be ideal for a stock-picking contest like

TheStreet.com's Beat the Street

, is to find high-beta stocks with potential catalysts in their future.

Before we turn to to

this week's Rocket Stocks portfolio

, let's take a look at how

last's week picks

fared.

  • Insteel Industries (IIIN) - Get Report: Up 15.7% on the week.
  • CSX (CSX) - Get Report: Up 8.7% on the week.
  • Goldman Sachs (GS) - Get Report: Up 8.1% on the week.
  • Cypress Semiconductor (CY) - Get Report: Up 7.3% on the week.
  • Joe's Jeans (JOEZ) : Up 3.8%.
  • Tesoro (TSO) : Up 3.2% on the week.
  • Cubist Pharmaceuticals (CBST) : Flat on the week.
  • Forest Labs (FRX) : Down 10% on the week on lowered 2009 revenue guidance.
  • China GrenTech (GRRF) : Down 10.6% on the week.
  • MannKind (MNKD) - Get Report: Down 18% on the week.

Now, let's look at a few picks from

this week's Rocket Stock portfolio

.

Making this week's list is

International Coal

(ICO)

, a stock that appears to be breaking out of its former resistance levels and could rocket higher in the coming week.

West Virginia-based International Coal is a large producer of metallurgic coking coal, which is used as a reducing agent in smelting iron ore and is an essential element in the manufacturing of steel. With the whole steel sector on fire, it is only natural to assume that International Coal is seeing increased orders.

The company, a member of our Stockpickr's

Top Steel Stocks

portfolio, has increased metallurgical production from 100,000 tons in 2006 to 2 million tons in 2008. And forecasts show that by 2010 the company will produce 2.6 million tons.

Year over year, its international pre-metric ton prices have increased substantially. In fact, its largest international consumers such as India, China and Russia are having massive coal shortages, which are forcing sharp increases in imports. With 94% of its 2008 orders committed, these additional orders will definitely boost future revenue.

International Coal is also an indirect play off the rallying natural gas prices as well. As natural gas rallies, increased pressure is put on coal-fired electrical generating plants to help increase electrical output.

The company is scheduled to report first-quarter earnings after Wednesday's market close. Its shares have lagged the coal sector overall since its initial public offering two years ago and, with a 15% short position, could see a nice move up.

Another stock making this week's portfolio is

Eastman Chemical

(EMN) - Get Report

, which is also set to report quarterly earnings this week, after Thursday's market close.

It is time to get back into the early cycle recovery stocks, and perhaps the safest way to play that is with the chemical stocks.

Last quarter, the company said it expects to double earnings to $10 to $11 a share by 2012 and to buy back 10%, or $500 million worth, of its shares this year. Eastman currently has a forward price-to-earnings ratio of 13, so factoring in potential earnigns of $11 a share, you could get a $130 stock by 2012.

TST Recommends

For more detailed analysis and the rest of this week's picks, including

Cemex

(CX) - Get Report

,

Zoran

(ZRAN)

and

Celanese

(CE) - Get Report

, check out the

Rocket Stocks for the Week of April 21-25

at Stockpickr.com.

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.

Another place to frequent is the

Answers

section on Stockpickr, where ideas such as those presented in this article are thrown around daily. And you can further discuss your ideas and share opinions in Stockpickr's

Members' Forums

section.

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.

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