Daily Stock Pick: Computer Services
A portfolio of stocks I started September 3, named Volio Folio, holds 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
I'm reviewing today the fifth of five technology sector stocks today striving to be picked to join the Volio folio collection. This would be the second pick for Volio!
The technology stock sector has nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health, information technology and services, to internet, scientific instruments, software, solar, and all such techno-marvels.
My subject today is a small-cap information technology services firm named Computer Services Inc.Their trading ticker symbol is CSVI.I previously reported on this company on May 17, 2018for my Safari portfolio, and April 30, 2019 for the Ivy portfolio, It has yet to be chosen!
Computer Services Inc. (CSI) is a customer service company that delivers innovative technology solutions to banks, financial institutions and other businesses nationwide.
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 collects its revenue from the sources of fees such as processing fee, maintenance fee, support fee and software licensing and installation fees. Geographically business activity is functioned through the United States.
Computer Services, Inc. was incorporated in 1965 and is headquartered in Paducah, Kentucky.
I use three key data points to gauge dividend paying equities or funds like Computer Services Inc (CSVI):
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest or not.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
CSVI Price
CSVI's price per share closed at $44.00 yesterday. A year ago its price was $26.45. In a year its price grew $17.55 or 66.4%.
Assuming CSVI's stock trades in the range of $60 to $60.00 this year, CSVIs recent $44.00 price could rise by $15.00 and get to $59.00 by mid September, 2020. If its momentum from last year continues.
CSVI Dividends
CSVI's latest declared quarterly dividend was $0.21 payable September 25th.
That $0.21 Q payout added to the previous threeequates to $0.84 annually and yields1.91% based on yesterday's $44.00 closing price.
CSVI Gains?
Adding the $0.84 annual estimated dividend to my $15.00 estimate of CSVI's price upside shows a $15.84 potential gross gain, per share, which will be reduced by costs to trade these shares.
Say we put a little over $1,000.00 today at the $15.84 recent stock price, we'd buy 23 shares of Computer Services Inc (CSVI) shares.
A $10 broker fee paid half at purchase and half at sale will cost us $0.43 per share.
Subtract that $0.43 brokerage cost from the estimated $15.84 gross estimated gain leaves a net gain of $15.41 X 23 shares = ($354.43) or a 35.45% net gain on a $1,012.00 investment.
Therefore, Computer Services Inc,whose trading ticker symbol is CSVI now shows a possible net gain of 35.45% including a 1.91% dividend yield. It could be more, it could be far less.
The above speculation is based on past year performance. The actual results remain to be seen to learn if Computer Services Inc (CSVI) is worth your time and money.
Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts Catch Your Underdog Daily ...
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