Caldwell Partners International Inc T.CWL

Trevor Rose's Insights - DON'T BUY

[Possibleidiot01]

GeraldW will have an opinion on this .

DON'T BUY

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

17/04/2024

 

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

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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consulting

 

$0.780

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[Torontojay]

That is a fair statement by Trevor Rose. There are certainly risks ahead and one could argue that we are not in a new bull market but a challenging one to say the least. Full time employment in the US peaked in June 2023 and has not recovered ever since. 

[mlmack66]

Sounds like Trevor did not read it does not believe the latest MDA where management says they have seen a significant increase in business in the past few months. We'll see in July when they report next.