Lettering over existing material

I am wanting to add some wording (as in a sprayed stencil effect) to an existing material.
And the wording needs to appear on the edge of the plane.

What is the best way to go about this?

I have created a targa file with alpha channel but I am having problems knocking out the background of the lettering image file and positioning at the bottom edge of the plane.

Perhaps this " basic decaling" tutorial could help :

It’s from the “blender newbies” website.

I hope this is what you’re looking for and that it helps.

Thanks Koontz.

That’s perfect! Gotta love Blender!!