Caldwell Partners Int'l (A) (CWL-T)

IF growth returns then CWL could do OK, but it has seen revenues decline for nearly the last two years. Margins also took a significant dip in 2023 and CWL generated a net loss. Looking back to years when CWL did see significant growth, it's margins remained quite thin so it was still not overly attractive.  Due to the size of the company, it could see some share price appreciation if growth returns, but trends have been negative for a while now. The balance sheet is does have high total debt but CWL does have a good cash balance so net debt is essentially none. We would would stay cautious here generally unless CWL makes significant progress towards growing the top and bottom lines. It is still a very tiny company at $24M and it can be hard to attract investor interest. 
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Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Revenues increased by 112% yoy. The growth has been from organic and acquisitions. There is solid demand for their products and further growth is expected through acquisitions. The sector looks good, and it should continue to grow with remote work trends. Has a strong balance sheet. Unlock Premium - Try 5i Free

They are a recruitment company. It’s not very exciting. It was 45 cents a few years ago, but has been pretty flat since 2013. They pay a nice dividend, the stock hardly trades (about 12000 share volume). It’s profitable and well-managed. He would be interested in the stock at 75 cents but it is so illiquid that it would be hard to accumulate at that price. He doesn’t see a lot of upside at this time.

A nice, little, solid company with a dividend. Received a takeover bid early this year, but that was declined. Has a good balance sheet, a good dividend and is a good business. Doesn’t know why they bother being public. A “heads you win/tales you break even” scenario. 5.5% dividend yield.

This is in the “executive search” world, and is a relatively small company. A couple of months ago they were the target of a takeover attempt, so instead the company bought back some of their stock. Have done a great job of raising their dividend and of keeping their balance sheet clean. The growth rate is quite good. Very vulnerable to economic swings. If it were a bigger company, he would like this a lot more. It doesn’t trade that much. In terms of risk/reward versus the balance sheet, dividend and how the company is run, there is lots to like about it.

In the executive search industry. While previously primarily focused on Canada, in the last 5-6 years, the CEO has made an effort to grow in the US. Over time this is very likely to be an acquisition candidate for one of the larger US players. Feels pretty good about their prospects. Very cheap at current prices. Thinks it is well worth $2 a share. Dividend yield of 6%.

This is in the executive search business in Canada. They are the 6^th or 7^th largest executive search firm in North America. We are seeing a nice pick up in the US job market, which is positive for this company. Have a lot of cash in their balance sheet. It might be an attractive acquisition candidate some day. Thinks there is good upside from here. Yield of 5.97%.

Likes this company, but he cautions that it is a very thin trader, and very small. Involved in corporate recruiting, so are highly attuned to the economy. Have cash on the books and earnings are starting to kick in. Pays a very, very attractive dividend of over 6%.

Small-cap company in the executive search business. A bit of a turnaround situation. They have done a great job of expanding in the US market, so they benefit from the US$ translation. Have a lot of cash on the balance sheet. As long as the US economy does well, their revenue will grow. Based on their cash balance, this stock is quite undervalued. Pays a nice dividend of about 5%-6%.

Seem to have a lot of visibility. They are working on deals presently. Pays a nice dividend and is trading at a low multiple. Too small for him, but if he were running a microcap fund, he would have it in his portfolio. Pays a dividend of over 5%.

Has some good attributes and still likes it. Feels there is still some good upside left. In the executive search business, and have a significant presence in the US. As the US economy is recovering, they are getting a lot more traction and mandates there. About half of the market cap is sitting in cash, so from a valuation standpoint it really adds a nice margin of safety. A pretty attractive dividend, which he feels is sustainable and safe. He could see upside to $2 a share.

A business that generally is going to benefit from a recovery in the economy. Have done a great job of expanding outside of Canada into the executive search business in the US in the last few years. As the US economy improves, the business and the number of searches they do will improve. Has a very large cash balance of about $0.45-$0.50 as share. Pays a nice dividend of 6.8%.

An executive search firm, small cap. They are in turn-around mode and have grown aggressively in the US. 7% dividend yield now. Pretty good fundamental business. It is a pretty discounted price.