Anthony Speciale Stock Market Analyst

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Why These Super Cheap Stocks are Primed for Huge Gains

Well, we’ve run out of holiday tropical-themed shirts, but we have not run out of holiday gift ideas for you.

Today, I’m going to give you two stocks that are super cheap based on earnings. These are smaller companies that you should use a limit order to buy, but both of these stocks have the potential for explosive 2022 gains.

They’re very cheap based on earnings, and the balance sheets are so strong that I really don’t see any chance of serious financial distress for these companies in 2022.

TSR, Inc.

So, jumping right in… TSR, Inc. (TSRI) is a staffing company that does staffing for contract computer programmers in New York, New England and the mid-Atlantic region.

Most of their clients are banks, asset managers, insurance companies, health insurance companies, publishing companies and electric utilities that need programmers and don’t want to hire them in-house. Instead, they can get them on a contract with TSR.

They have also supplied computer programmers to tech startups that need projects done but don’t have enough money yet to afford a full-time in-house programmer.

So, it’s a good business. The need for technology, as we all know, is growing, and I don’t think that particular trend is ever going to roll back.

Companies are going to be hiring more contract programmers, which should set up a bunch of growth opportunities for this company.

The stock is trading at a ridiculous price of just three times earnings in spite of the fact that the company is reporting record revenues. Insiders own about 29% of the stock, while institutional ownership is very low.

Any good news that brings institutional buying pressure into this stock is going to cause the stock to explode higher over the course of the next year.

Franklin Wireless Corp.

Next up is Franklin Wireless Corp. (FKWL), which is trading at just five times profits.

This company makes routers, wireless hotspots and internet connected applications, including pet & vehicle trackers, and a new cloud-based device that schools and other institutions are using to manage multiple devices.

It’s a subscription-based service that allows businesses and schools to give remote access to their systems without having massive startups costs.

They’ve got this up to about 50,000 subscribers so far, which is kind of a critical mass point for this program, so it should start driving some profits going forward.

The stock is just ridiculously cheap because they had a router recall earlier this year with Verizon. That’s been worked through, and the difficulties are solved. It appears they have made Verizon happy with the way it’s all worked out.

But the stock is now trading a just five times earnings. Any good news coming into shares of FKWL should cause the stock to move dramatically higher.

The stock was $22 earlier this year, and it’s down 80% or so. All the bad news is more than priced into the stock, and the balance sheet is rock solid, so I don’t think anything terrible is going to happen financially.

As business picks back up, just one little bit of good news and this stock is going to go to several times the current stock price in 2022.

Again, it’s a smaller company, so use a limit order and don’t throw a market order in on this. And you don’t have to buy a lot because, if they work, the gains are going to be massive.

Massive gain potential… Very low risk in the balance sheet… That’s a great combination for the year ahead.