Biden Plans to Send This $9 Stock to $90 by 2022

In my free weekly Total Wealth service, we've been talking about stocks that trade for less than 10 bucks a share, but have an outsize chance of returning multiples of the purchase price - 3X, 7X, even 10X the initial investment.

This extreme profit potential is possible because the stocks we're talking about are keyed into unstoppable trends, backed by a flood of trillions in capital.

You'll get the chance in a second to get into my free Total Wealth research and get all my picks, but today I'm going to name a stock that I've just got to share with everyone. It's that big.

This company has real "10X" potential - what back in the day they used to call a "ten-bagger."

My subscribers got the ticker last week, and they've already had the chance to book nearly 10% profits, because, as I expected, it's come up nicely - especially since the president's address to Congress on Wednesday night.

For the moment, shares can still be had for less than $9, but here's why I don't think that'll be the case much longer...

Perfectly Positioned for Policy Priorities

It's no coincidence this stock has seen a boost since the president laid out his argument for trillions in spending on infrastructure. It's a company with a lock on government contracts across the globe, again, at just the moment Biden's White House is looking to sink trillions into infrastructure. That's one of the reasons why earnings are projected to rise tenfold over the next year - and that's the key to 10X profit potential.

The company I'm looking at here is PAE Inc. (NASDAQ: PAE), a Falls Church, Va.--based government contractor that has its hands in global security, infrastructure, outsourcing, construction, training and testing, and even space services.

Each and every one of those is a "front-burner" enterprise for the United States and its allies.

It's a company that was spawned in the Cold War era, in 1955 - when it was founded as Pacific Architects and Engineers, a California architecture-and-engineering firm helping Washington rebuild Asia following the Second World War.

Now known as PAE, the company today operates in about 60 countries, on every continent.

(Note: I've talked about some great cheap stocks to buy in my Total Wealth research service. You can click here to start your free subscription right now - you'll get all the strategies, insights, and names of stocks I talk about regularly... and it'll never cost you anything.)

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When Washington looks to set up an intelligence operation and needs a secure construction site, PAE is often the first choice. When it needs support for a federal data center, PAE is there. When it needs the physical "stuff" that makes border security possible, it looks to PAE.

And when it comes to the Space Program, the United States couldn't function without PAE. The company supports the Johnson Space Center in Houston, the Kennedy Space Center in Merritt Island, Fla., rocket testing at the Stennis Space Center in Hancock County, Miss., and spacecraft assembly operations at Michoud Assembly Facility in New Orleans.


Shah Gilani says 2021 could be a gold mine for Americans - and these 5 stocks are "screaming buys."


Shah Gilani says 2021 could be a gold mine for Americans - and these 5 stocks are "screaming buys."

Here's the real takeaway here: Uncle Sam is a fixture on PAE's customer rolodex. Over time, the federal government just keeps getting bigger. Indeed, President Biden just went on national television to outline the biggest government expansion since Lyndon B. Johnson in the 1960s.

And because the government owns the monetary printing press, PAE - and, by extension, you - will always get paid.

For proof, look no further than earnings growth

Earnings per share are projected to grow from $0.07 a share in calendar 2019 to as much as $0.75 this year and a possible $0.94 in 2022 - that's better than a 10X jump, and more like a 12X.

What does that mean for a stock that's currently trading just under $8.80?

Wall Street's sell-side crowd has a 12-month consensus target of $14, with a high of $16 - a peak jump of more than 100% from where it's trading right now.

But if PAE delivers on - or, better still, beats - those earnings, higher peaks are certainly possible.

That's the allure of a cheap stock strategy. When you buy sound companies trading in the single digits, you're exerting more buying pressure... and when Wall Street catches on, their buying pressure can take your investment 5X, 7X, 10X higher. I saw that very thing happen time and time again during the three decades-plus I spent on Wall Street.

As I said at the beginning, PAE is not the only cheap stock out there projected to make it big; it's not the only cheap stock on my radar right now.

Some of the stocks on my 2021 must-buy list are very cheap by Wall Street's standards, and plenty of the outrageously popular "Pure Portfolio Poison" stocks I recommend people sell or avoid trade for big money.

You can go right here to watch me run through the best stocks and the worst - what to buy and what to unload at all costs. I'm naming names here in a stock-picking marathon. You can watch it at your leisure - just be sure to take notes.

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About the Author

Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.

The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.

Shah founded a second hedge fund in 1999, which he ran until 2003.

Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.

Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.

Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.

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