Updated from 6:13 a.m. ESTTrading 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
- 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.
- Fluid Management, which is an indirect play on oil. Drillers need their rigs cleaned and RBN's fluid management products do just that.
- Process Solutions, which is involved with the chemical and pharmaceutical sectors.
- 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.
- 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.