Daily Stock Analysis: CSP Inc.

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CSP Inc. bears the ticker symbol CSPI, and this is my first mention of CSPI for this new Viking Portfolio, or any of my previous seven dog of the week folios.

CSP Inc along with its subsidiaries develop and market Information Technology (IT) integration solutions, advanced security products, managed IT services, cloud services, purpose-built network adapters, and high-performance cluster computer systems.

The firm operates in two segments namely (1) Technology Solutions, where the company focus on value-added reseller integrated solutions including third-party hardware, software, and technical computer-related consulting, and (2) High-Performance Products segments, where the company design, manufacture and deliver products and services to customers that require specialized cyber security services, networking, and signal processing.

It generates a majority of its revenue from the Technology Solutions segment.

Geographically, the company generates major revenue from the Americas.

CSP Inc. was incorporated in 1968 and is headquartered in Lowell, Massachusetts.

Three key data points gauge CSPI, or any dividend-paying firm:

(1) Price

(2) Dividends

(3) Returns

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

CSPI Price

CSP Inc.'s price per share was $11.75 at Thursday’s market close. In the past year, CSPI's share price increased by $3.72, or about 4.6%.

If CSPI stock trades in the range of $7.00 to $15.00 this next year, its recent $11.75 share price might reach $12.40 by next year. That upside estimate of $0.65 is about the average of CSPI annual price gains over the past ten years.
 

CSPI Dividend

CSP Inc.'s most recent annual dividend of $0.12 cast a forward annual yield of 1.02%.
 

CSPI Returns

Adding the $0.12 annual estimated CSPI dividend to my one-year price upside estimate of $0.65 reveals a $0.77 potential gross gain estimate per share.

At Thursday’s $11.75 closing price, a little under $1000 would buy 85 shares.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might cost us about $0.12 per share.

Subtracting that maybe $0.12 brokerage cost from my estimated $0.77 gross gain makes a net gain of $0.65 X 85 shares = $55.25 for a 5.5% net gain including the 1.02% annual dividend yield.

In the next year, our $1K investment in shares of CSPI could generate $10.20 in cash dividends. Furthermore, a single share of CSPI at Thursday’s $11.75 price is $1.65  more than the estimated annual dividend income from our $1000.00 invested.

So, by my dogcatcher ideal, this is not a proper time to buy CSP Inc. shares, based on their dividends for 2023. The current dividend from $1K invested is $1.65 lower than the CSP Inc single share price.

Consider yourself alerted. Wait for CSPI share price to drop to $10.95

All of the estimates above are speculation based on the past history of investment in shares of CSP Inc. Only time and money invested in this stock will determine its future market value.


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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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