Current Analysis: Text SA

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

The company has developed LiveChat which is a tool that is used for direct communication between the website visitor and its owner. For the end user, it has the form of a chat window placed on the website.

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.

Three key data points gauge Text SA 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.

LCHTF Price

Over the past year, Text’s share price increased about 20.35% from $30.12 to $36.25 as of Tuesday’s market close.

If LCHTF stock trades in the range of $30.00 to $40.00 this next year, its recent $36.25 share price might rise to $39.00 by next year. Of course, Text’s price could drop about the same $2.75 estimated amount or more.

My upside estimate of $2.75, however, is based on the average annual price performance of the past two years

LCHTF Dividend

Text SA has paid Annual dividends increasing roughly annually since January 9, 2019. LCHTF's most recent A dividend, paid on September 1 to shareholders of record on August 24th, is $1.44. That annual return casts a forward yield of 3.96% per Tuesday’s closing price.

LCHTF Returns

Add the $1.44 anticipated annual dividend to Text’s estimated $2.75 possible price upside, revealing a $4.19 potential gross gain per share for the coming year.

At Tuesday’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 $0.26 per share.

Subtracting that likely $0.26 brokerage cost from my estimated $4.19 gross gain per share makes a net gain of $3.93 X 28 shares = $110.04 or about a 11% net gain.

This could be time to pounce on Text SA shares. But beware, LCHTF is a 19-year-old software development firm paying Q dividends for the past four years. However, the estimated $39.60 dividend from $1000 invested comes in at $3.35 more than the recent $36.25 single share price. The choice is yours. The dividend from the $1K invested exceeds the single share price by more than 9%.

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


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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