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TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.                                                                                                                                                                                                                                                                         Sweden-based Elekta AB (EKTAF) is a medical technology company, providing clinical solutions for treating cancer and brain disorders worldwide. It develops, manufactures, and distributes treatment planning systems for neurosurgery and radiotherapy, including stereotactic radiosurgery and brachytherapy.

The company's installed base of more than 5,000 linear accelerators, GammaKnife, and Unity platforms, and software is used in more than 6,000 hospitals globally.

The company's sales are evenly distributed across geographies, with North and South America accounting for 29%; Europe, the Middle East, and Africa accounting for 37%; and Asia-Pacific contributing the remainder.

The company was incorporated in 1972 and is headquartered in Stockholm, Sweden.

Three key data points gauge Elekta 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.

EKTAF Price

Over the past year, Elekta’s share price fell 1.7% from $7.69 to $7.56 as of Monday’s market close.

If Elekta shares trade in the range of $5.00 to $10.00 this next year, its recent $7.56 share price might rise to $7.75 by next year. Of course, EKTAF’s price could drop about the same $0.19 estimated amount or more.

My annual upside estimate of $0.19 however, is within the range of the company’s average annual price gains over the past two years.

EKTAF Dividend

Elekta AB has paid variable semi-annual dividends since September 2014. Elekta’s most recent SA dividend of $0.12 was declared July 13 for shareholders of record on February 26th and the payout was made March 1st.

The forward-looking $0.24 annual dividend yields 3.17% at Monday’s $7.56 share price.

EKTAF Returns

To put it all together, add the Elekta estimated annual dividend of $0.24 to the estimated price upside of $0.19 to find a $0.43 estimated gross gain for the coming year.

At Monday’s $7.56 share price, a little under $1000 would buy 132 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.075 per share.

Subtracting that likely $0.075 brokerage cost from the $0.43 gross gain reveals a net gain of 0.355 X 132 shares = $46.86 for a 4.68% estimated net gain on the year.

You might choose to pounce on Elekta AB. It is a 51-year-old dividend-paying Stockholm-based electro surgical equipment company.  Furthermore, the estimated $31.70 annual dividend income from $1k invested is 4.19 times greater than Eleka’s recent $7.56 single share price.

The exact track of Elekta AB’s ongoing future price and dividend will be determined by market action.

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

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