Tuesday, August 4, 2009

KSW Starting a Climb?

It's hard to find stocks with decent fundamentals that haven't already careened way off the market's bottom and are a worry to buy now. KSW is in a despicable area of the market. They do HVAC and commercial building piping, not globally, but just in the U.S. and mainly just New York. You won't hear its virtues being discussed on CNBC and I doubt if the funds are too loaded up with it just now. The current quarter has dipped into the red, but overall they haven't been too devastated by the recession: (click to enlarge charts)

The stock has been devastated far more than their financial results and now trades at a ttm PE of 5. Inside ownership is a strong 31% of the shares, no big recent buying though. They pay a 3.5% dividend if you have to wait some more for a recovery in the stock. But you may not have to wait that long:

It had a more active February than is ideal, but it has that "left for dead" appeal. And it has good divergence between the accumulation/distribution trend and the 200 dma, which has just now been breached as well as a fairly well entrenched resistance level just below $ 3 dollars.

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