The market is so dirt-cheap and is due for such a nasty snapback that we can hold off on the usual opening anecdotes and get right down to business.

Each week I like to find beaten-up stocks that I believe have the potential to snap back in coming days because of specific catalysts that could play out. I especially like when these stocks with near-term growth potential also qualify as solid long-term plays.

My main goal here is to find stocks that can rise in the coming week, no matter how the market moves. I like to look for snapbacks, earnings plays and other tradable market catalysts. As a general rule, you want to buy extreme weakness and sell extreme strength

For a complete list of ideas, check out this week’s Rocket Stocks portfolio.

Apple (AAPL) is an $80 stock with $28 in cash and zero debt. It trades with a forward P/E of 12.18 and EV/EBITDA of 7.73. Consensus estimates for 2009 are $5.35 on more than $37.5 billion in revenue. MacBook sales are growing three times faster than the industry average, and iPhone unite sales grew by more than 400% in the fourth quarter of 2008. Sure, holiday sales are going to be weak, but that is why the stock is down from an all-time high of more than $200 earlier this year. I like Apple for both the long and short term.

KBR (KBR) is a $9.86 stock that has $6.87 in cash and zero debt. It is going to earn at least $1.70 this year, which means that its current valuations place KBR at just two times earnings estimates. KBR is a $1.59 billion infrastructure company, with a backlog of $13.4 billion. KBR's revenue is 89% internationally based and 11% domestically based. Its backlog is broken up into six pieces: downstream, government and infrastructure, services, technology, upstream and ventures.

Xinyuan Real Estate (XIN) is a $1.75 stock, with $1.90 in cash and a total debt-to-equity ratio of 0.7. Xinyuan is an earnings play off Chinese real estate. In a press release regarding the $586 billion stimulus, the Chinese government specifically mentions improving living and housing conditions for middle- to lower-class families by 2010; that has Xinyuan written all over it. Xinyuan is the leader in residential development in "second-tier" cites, or cities with populations of less than 5 million to 10 million. The company just announced an 8% buyback. "The Board's authorization of this share repurchase program reflects our continued confidence in the long-term growth prospects of our company and China's real estate industry. We are committed to increasing shareholder value and we believe that our ADSs are presently undervalued in the marketplace," said CEO Yong Zhang.

JPMorgan Chase (JPM) is a $24 best-of-breed financial stock with a stated book value of $36.50 per share. The integration of Bear’s prime brokerage unit is going better than expected, and assets that JPMorgan and the Federal Reserve assumed are now performing very well. Last week, BlackRock (BLK) president Robert Kapito told reporters that “the cash flows are coming in very close to what we had anticipated from the very beginning.”

In rough times like these, staple companies like Campbell Soup (CPB) are solid ideas. The stock, which yields 2.7%, received a huge analyst upgrade by Deutsche Bank ahead of the quarter last week. Deutsche said that it now expects the company to post EPS growth of 7% as “more consumers are eating at home.” Deutsche also said: “Food makers have been hit by high prices for key ingredients like corn and oil, which has put pressure on their margins and forced them to raise prices. But those prices are moderating after highs this summer.” So despite being a great recession name, Campbell is an indirect trade on the mammoth drop in the prices of corn, wheat and other commodities.

Are things bad in our economy? Of course, but if you wait for Mr. Market to ring a bell for you at the bottom, you are likely to miss a substantial move higher.

For more ideas, check out this week’s Rocket Stocks portfolio.

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:

The Daily Hot List: This must-view portfolio of what stocks are making moves and why is posted at midday each day.

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. The funds will be buying at the lower prices and likely supporting the stock.

Ditto for the 52-week-low list. You must check the above two lists every day if you hope to find volatile stocks that can snap back

Biotech Short Squeezes: Dendreon and others can often be found in this category.Stocks Rising on Unusual Volume: These are potential breakout plays.

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 Options Activity: Perhaps someone knows something?

Latest Activist Situations: These are 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 the 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. And you can further discuss your ideas and share opinions in Stockpickr's Member Forums section.

By James Altucher

Posted on Nov. 23, 2008