Amidst the AI transition, several companies perceived to be ‘under threat’ are being discounted at unprecedented levels.

In this case, a seemingly simple chatbot provider is being overlooked, despite maintaining consistent double-digit growth since its 2012 listing (no negative years).

The company is successfully pivoting from $50/month contracts toward high-value $500+/month custom-made enterprise accounts (now representing nearly 60% of MRR), signaling a clear pathway to defending and expanding its competitive advantage.

Let’s dive into the details.

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Pick of the Week. A curated series of high-conviction research on companies currently under our microscope. We screen for specific dislocations where the market has mispriced the balance sheet or earnings power.

The Selection Criteria:

Asset Arbitrage: Trading at a discount to tangible liquidation value.
Backlog Disconnect: Future contracted revenue ignored by the market.
Hidden Margins: Structural profitability masked by temporary noise or CAPEX cycles.

The Structure:

The Business: A concise operational overview.
The Dislocation: The specific structural reason the opportunity exists.
The Valuation: A stress-tested snapshot including downside risks (”Red Flags”) and our proprietary score.

None of the following should be construed as investment advice. Please consult a financial advisor before making any investment decision. You will find a full disclaimer at the end of this post.

💬 Text S.A. ($TXT)

Headquartered in Wrocław, Poland, Text (formerly LiveChat Software) is a high-margin customer engagement and conversational AI powerhouse.

[$TXT] 6x EBIT/EV, 20.7% 5-yr Rev CAGR, and…

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