By James Altucher
Posted on March 30, 2009

Each week, I like to find beaten-up stocks that I believe have the potential to surge higher (or lower) in coming days due to a specific event-driven catalyst. I especially like when these stocks with near-term potential also qualify as solid long-term plays.

I compile my ideas in the Rocket Stocks portfolio portfolio. Remember, each pick has a specific catalyst.

Before we get to this week's picks, let's take a look back at last week's portfolio.

My Phillips-Van Heusen (PVH) recommendation worked perfectly, finishing the week up a whopping 35% vs. a rise in the S&P 500 of approximately 5%. For the quarter ending Feb. 1, Phillips-Van Heusen reported earning 30 cents per share, which was at the high end of the company’s forecast of 25 cents to 30 cents per share and 2 cents better than the average Wall Street estimate of 28 cents per share. For the quarter, revenue edged down 1% to $577.8 million, which was short of the company’s forecast of $585 million to $590 million. Additionally, Citigroup increased its price target on the stock to $24 from $19, saying Phillips-Van Heusen "is managing well through the current environment, in our view, with clean inventory management, moderated expansion plans, and a robust balance sheet.”

Now, for this week’s Rocket Stocks portfolio.

Lindsay (LNN) is a snapback earnings play this week. Recently, its fiscal first-quarter profit rose 45%. For the three months ended Nov. 30, net income rose to $6.3 million, or 51 cents per share, compared with $4.4 million, or 36 cents per share, in the year-earlier period. Operating income for Lindsay has grown from just $16 million in 2003 to more than $62 million, with a compounded annual growth rate of 20% for the five-year period.

In total, for full-year 2008, revenue is up $475 million compared with just $282 million in 2007 -- that’s an increase of more than 65% in a single year. Domestic irrigation revenue $239 million is up 63% from 2007, international irrigation revenue of $136 million is up 95%, and infrastructure revenues of $100 million is up 53%. More important, gross margins improved to 26.1% from 24.7% from last year. Operating costs dropped from 16.3% in 2007 to 13% in 2008.

Interestingly enough, Lindsay has a very strong highway safety business, which fits right into Obama’s infrastructure plan. Here revenues have gone from just $12.1 million in 2003 to more than $100.2 million in 2008, with operating income of $1.2 million in 2003 to more than $16.7 million in 2008.

Lindsay is also a big beneficiary of the declining price of steel, which has hurt companies like U.S Steel (X), AK Steel Holding (AKS) and Nucor Corporation (NUE).

This week’s Rocket Stocks portfolio also includes a bullish trade on Research In Motion (RIMM) and a bearish bet on Apollo Group (APOL).

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:

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, research 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

Stocks Rising on Unusual Volume: These are potential breakout plays.

Stocks With Unusual Options Activity: Perhaps someone knows something?

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.

At the time of publication, Altucher had no positions in stocks mentioned.

Who’s on Stockpickr Answers? Dan Fitzpatrick will be on Stockpickr Answers on March 31 to respond to investing and trading questions posed by members of the Stockpickr community. Not a member? Join the Stockpickr community today -- free.

P.S. Where is Jim Cramer putting his own money? Take a free peek at his personal portfolio to see all his buys and sells by clicking here. When you do, Jim will also send you exclusive email alerts telling you everything he’s about to add to or shed from his Action Alerts PLUS portfolio -- before he makes his trade.