Updated from 6:13 a.m. EST

Trading stocks can be a cruel and an unpleasant process, especially short term. Stocks go through all sorts of growing pains all the time: There are missed earnings, misunderstood press releases, downbeat management meetings and negative analyst reports with which to contend.

But sometimes the stocks that drop the most snap back the hardest.

Each week at Stockpickr.com, we search for those stocks that are underappreciated by Wall Street, with the thought that they can be ridden higher on a snapback play.

As readers know, I like to look for stocks that have potential catalysts ahead of them. The catalysts I look for vary from week to week, but typically they might include earnings, irrational selloffs, regulatory decisions, misinterpretation of company-specific news and other market-independent events that could push a stock higher.

3 Stocks I Saw On TV

But before I get to this week's Rocket Stock picks, let's take a look at how last week's Rocket Stocks picks fared in another rough market.
  • Syngenta (SYT): up 5% on the week as Monsanto (MON) reported great earnings.
  • Harvard Bioscience (HBIO): up 3.5% on the week.
  • Annaly (NLY): up 0.6% for the week.
  • Yahoo! (YHOO): down 0.3% on the week.
  • Target (TGT): down 5.3% for the week, even though activist investor Bill Ackman suggested that Target shares are worth $120.
  • EMC (EMC): down 7.5% for the week.
  • NutriSystem (NTRI): down 9.3% for the week.
  • Noven (NOVN): down 9.8% for the week.
  • Terex (TEX): down 10.7% for the week.

Now let's look at the 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 earnings on Jan. 9.

Robbins & Myers is divided into three main business platforms:
  1. Fluid Management, which is an indirect play on oil. Drillers need their rigs cleaned and RBN's fluid management products do just that.
  2. Process Solutions, which is involved with the chemical and pharmaceutical sectors.
  3. Romaco, which offers the greatest risk/reward ahead of earnings. Romaco is primarily involved in packaging equipment for cosmetic and pharmaceutical companies. Earnings from Romaco are volatile, but even a slight gain for Romaco should help shares of Robbins & Myers.

Weaker industrial goods orders may slow down some of its U.S.-based business, but with 60% of total revenue coming from outside the U.S., this shouldn't be an issue.

Weekly Catalyst: With 60% of its revenue coming from overseas, Robbins & Myers is greatly aided by currency rates. RBN is also an indirect play on rising oil, and the company should see increased orders as oil rises. And even the slightest gain in Romaco could help EPS greatly.

Next up is Sciele Pharma ( SCRX), which last week received regulatory approval to sell a new version of its blood pressure drug Sular. Sciele expects to launch the drug relatively quickly during the first quarter, and sales are expected to start in late February.

Neponset Equity Research analyst Noelle Tune said in a note to clients that Sciele is "starting the new year on the right foot."

Possibly more interesting is the massive short position in Sciele. Almost 30% of its total shares are short, which seems high considering this piece of solid news.

With shares trading closer to their 52-week low than their 52-week high despite having FDA approval, Sciele Pharma offers an interesting entry point to play a possible short-squeeze rally.

Also worth looking at this week is Synchronoss Technologies ( SNCR). With the Consumer Electronics Show set to take place this week in Las Vegas, Synchross shares could profit substantially as investors look for an indirect way to play new electronic gadgets. Synchronoss makes ActivationNow software, which helps host communication over the Internet.

If Palm ( PALM) comes out with anything new at the trade show, shares of Synchronoss could pop. Synchronoss Technologies also has a short position of 20%.

For more detailed analysis and the rest of this week's picks, check out the Rocket Stocks for the Week of Jan. 7-11 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 backtested 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.
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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