Penny Stock News: Franklin Wireless Announces Third Quarter Fiscal 2011 Financial Results

Listed in Penny Stocks, Stock Picks,, Day Trading, Best Stocks

SAN DIEGO, CA–(Marketwire – May 13, 2011) – Franklin Wireless Corp. (OTCBB: FKWL), the
market leader in dual-mode WiMAX and CDMA modems for 3G and 4G wireless
broadband data communications, today announced financial results for the
third quarter of fiscal year 2011 ended March 31, 2011.

The Company reported net sales of $9.4 million for the quarter, compared
with $31.6 million in net sales for the corresponding period of 2010. Gross
margin improved to 29.7% from 13.5%, and despite the decrease in revenue,
net income rose to $1.5 million for the three month period ending March 31,
2011, compared with $1.3 million for the same period in 2010, which
represents a 13% increase year-over-year. The improved gross margin and
net income were driven primarily by an increase in the proportion of FTI
supplied products (vs. third party suppliers), which consisted of the
Company’s U600 and U210 USB modems. On a fiscal year-to-date basis, net
income more than doubled to $4.7 million from $2.3 million for the same
period last fiscal year.

Penny Stocks are stocks traded for under $2 and they represent the small cap companies. They trade on the OTCBB so you will not find them on the major stock exchanges. They are very cheap stocks and normally come for businesses needing capital. They are a very risky investment as the business can go under and leave you with a stock worth nothing. However that being said penny stock trading can be a great money maker, and there are numerous traders who make 6 figures and more from them each year.

The best reasons to trade in penny stocks are the fact that they do not require a large initial investment, meaning that they are an affordable investment for many. Penny stocks are cheap. For example if you were to buy 1000 shares in a company with shares at 10 cents, you would only require an investment of $100, whereas if the shares cost $5 you would require an investment of $5000. Penny stocks also have the potential of huge gains, and have been known to rise as much as 1000% daily. Therefore your $100 investment can be worth $1000. This is very unlikely to happen to other stocks from large cap businesses.

Article source: