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I used the recent pullback of the last few days to increase my position in KSW (NASDAQ:KSW) by about 50% at $7.29. Yes, the insider selling has started again from the CEO, but I’m taking a bit of a contrarian opinion that the stock will be able to absorb the rest of his scheduled sales and move higher despite them.

The recent 5% stock dividend was all about adding liquidity for this stock, and I believe the stock is now better suited to absorb the sales. The recent move up to $8 indicates that someone is finally paying attention, and the CEO was able to sell a rather large block (12k shares) last week. By my count, he only has about 65k shares left to be sold, and that is a sum that I think the market can absorb without significant downside.

KSW is now my 2nd largest holding after Harbin Electric (NASDAQ:HRBN).

KSW 1-yr chart