TOP IDEAS: With revenues of $50 million plus, Caldwell Partners International (TSX: CWL) will now be on the watch list of strategic buyers which could value the stock at $2.30 and higher.

Investorfile's share price accumulation target of $1.30 for Caldwell Partners International Inc. was reached on July 18, 2014. For the record, we do not revise share price targets for our Investorfile Top Ideas - Small Cap Value Stocks. We have positioned our blog to be one of the first providers of a pragmatic perspective of a small cap company stock's potential worth, where there may be uncovered value that has been largely overlooked by the investment community.

With a year-over-year revenue increase of 30% in Q2, Caldwell Partners International Inc. (TSX: CWL - $1.26) posted another strong quarter in fiscal 2015. But what has gone unnoticed: In the last 12 months this Company has generated about $50 million in sales, an annual revenue run-rate that, no doubt, will be exceeded by the time Caldwell Partners reports its fiscal 2015 results.

Caldwell Partners International is a premier executive search firm whose focus is on the high end of the employment search market; for CEOs, CFOs, presidents, boards of directors and senior level positions where an executive search is seen as an important business investment rather than an expense. Caldwell Partners' executive search expertise serves a multiple of major industries, including Financial Services, Technology, Industrial, Insurance, Healthcare, Consumer, Media and Government.

We reported in our blog post last year that Caldwell Partners was poised to grow (See: Caldwell Partners is on a growth course). In fiscal 2013, the Company reported annual revenues of $33.8 million. This fiscal year the revenues should top $50 million. Caldwell Partners has grown rapidly.

What is behind the growth?

1. The Caldwell Partners brand is strong as one of the world's most trusted advisors in executive search. Its business operations have momentum.

2. The recent and continuous arrival of high-calibre executive search partners who are deciding to join Caldwell Partners is building the Company's overall market presence and industry competitiveness.

3. Average fees and search per partner at Caldwell Partners is at industry-high levels.

4. Caldwell Partners has an international footprint with offices/partners located across the United States, Canada and the UK (London).

5. The current business environment for executive search services is robust.

With a $50 million revenue run-rate and its international presence, Caldwell Partners will be on the radar of industry consolidators.

Typically an executive search firm is valued at a range of 1 to 1.4 times its annual revenue run-rate. This suggests that today Caldwell Partners is worth $50-$70 million or approximately $2.30 to $3.30 per share. This equates to a potential average upside of 122% in the stock price from its current trading levels.

Does it pay to hold Caldwell's stock today and realize this value?

We say yes. Why?

1. The Company pays a $0.02 per share quarterly dividend (a 6.1%yield).

2. Dividend payout rates have increased annually over the last three years.

3. Caldwell Partners maintains a very strong balance sheet with cash on hand and no debt.

4. The Company is profitable.

Therefore we still recommend small cap investors should buy and hold Caldwell Partners' stock.

Caldwell Partners has approximately 21.2 million shares outstanding.

The Caldwell Partners International website: www.caldwellpartners.com

Author ownership disclosure: TSX: CWL - YES

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