KSW (NASDAQ:KSW) announced yesterday that it has been awarded $15.6 million in new contracts to install HVAC units at a new development site on the Brooklyn waterfront. The contracts come from a real estate development group headed by Jeff Levine, with whom KSW has already cooperated on several projects.
The news is obviously quite bullish for KSW, as it adds some 15% to their backlog. Additionally, the contract reaffirms the quality of KSW’s work, as they continue to be called back by existing developers for new projects. I have recently been adding to my KSW position, taking the contrarian view that insider selling would not be able to hold the stock down due to incredibly strong fundamentals. It appears that my patience here has been rewarded, and KSW is still an inexpensive stock at current levels (especially considering the large cash position). The extra volume brought on by this contract should help to absorb most of the rest of the stock that is scheduled to be sold by the CEO this year, and with the insider sales out of the way, there will be little to hold down the stock price over the next few months.
KSW 1-yr chart