This week, I'm looking for the fourth technology representative of six for my Ivy portfolio. The technology sector includes nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health, and information technology and services, to internet, scientific instruments, software, solar and all such technological enterprises.
Today I'm reviewing a small-cap (~$906M) information technology services organization named Computer Services Inc. Its trading ticker symbol is CSVI.
Computer Services Inc is a customer service company that delivers innovative technology solutions to banks, financial institutions and other businesses nationwide. Computer Services, Inc. was incorporated in 1965 and is headquartered in Paducah, Kentucky.
The company offers services related to bank and payment processing, cloud-based banking security, mobile and internet solutions, electronic distribution, regulatory compliance, and managed services. It gets revenue from fees including processing fee, maintenance fee, support fee and software licensing and installation fees. its business activity is in the United States. It provides its products and services to community banks, regional banks, and multi-bank holding companies, as well as to various other business enterprises.
I use three key data points to gauge the value of any dividend equity-like CSVI:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest.
Those first three primary keys, however, best tell whether a company has made, is making, and will make money.
CSVI Price
CSVI's price per share closed at $65.45 Friday. A year ago its price was $47.30. Price increased $18.15 or 38.37% in the past year.
Assuming CSVI's stock trades in the range of $55.00 to 75.00 this year, CSVI's recent $65.45 price could rise by $5.25 and go to $70.70 by early May 2020.
CSVI Dividends
CSVI's most recent declared quarterly dividend was $0.36 declared March 5th and paid March 29th. A $0.36 Q dividend equates to an annual payout of $1.44 for a yield of 2.20% at yesterday's $65.45 closing price.
Gains For CSVI?
Adding a $1.44 annual estimated dividend to my $5.25 estimate of CSVI's price upside shows a $6.69 potential gross annual gain, per share, which will be reduced by costs to trade those shares.
Say we pay a little under $1,000.00 today at the $65.45 recent stock price would buy us 15 CSVI shares.
A $10 broker fee paid half at purchase and half at sale will cost us $0.67 per share. Subtract that $0.67 brokerage cost from the estimated $6.69 gross annual gain leaves a net gain of $6.02 X 15 shares
= $90.30 or a 9.1% net gain on a $981.75 investment.
Therefore, CSVI now shows a possible net gain of 9.1% including a 2.20% dividend yield.
No brokers cover this stock.
No consensus score is available.
However, you can look at Computer Services Inc and see it has made money, is making money, and could net 9.1% gains including a 2.20% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to determine if CSVI is worth your time and money.
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