Current Analysis: Text S.A.

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Text S.A. is a Poland-based company offering services in the SaaS (Software as a Service) model supporting sales and customer service.

The company was formerly known as LiveChat Software S.A. and changed its name to Text S.A. in September 2023. The company was founded in 2002 and is based in Wroclaw, Poland. It ceased to trade on the OTC market in July 2023 and  now trades on the Warsaw Exchange as TXT.WA. 

Three key data points gauge Text S.A. or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

Text S.A. Price

 Over the past year, Text’s share price increased about 20.4% from $30.12 to $36.25 as of Wednesday’s market close.

If Text S.A. stock trades in the range of $30.00 to $40.00 this next year, its recent $36.25 share price might rise to $37.50 by next year. Of course, Text S.A.’s price could drop about the same $1.25 estimated amount or more.

My upside estimate of $1.25, however, is about at the mid-point of the average annual price swing shown over the past five years the company has paid dividends.

Text S.A. Dividend

Text S.A. has paid variable Annual dividends since January 9, 2019.  Text’s most recent A dividend, as of September 1 to shareholders of record August 24th, was $1.44.

That measures up to an annual forward-looking yield of 3.97%.

Text S.A. Returns

Add the $1.44 anticipated annual dividend to Text’s estimated $1.25 possible price upside, revealing a $2.69 estimated gross gain per share for the coming year.

At Wednesday’s $36.25 closing price, a little over $1000 would buy 28 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.36 per share.

Subtracting that likely $0.36 brokerage cost from my estimated $2.69 estimated gross gain per share makes a net gain of $2.33 X 28 shares = $65.74 or about a 6.5% net gain.

This might be about time to pounce on Text S.A. shares. But beware, Text S.A. is a Polish Artificial Intelligence software company paying variable annual dividends for five years. Furthermore, the estimated $39.70 annual dividend from $1000 invested comes in at $3.45 greater than the recent $36.25 single share price. The question is what annual dividend payments are forthcoming?

Remember the true value of any stock is best realized through personal ownership of shares.

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