KSW Inc.(KSW)

July 22nd, 2010
Q1 2010 data
Check list:
1.Major Business.
Installing heating, ventilating and air conditioning (HVAC) systems at New York.


2.Price/Book ratio.
Current price $2.70. Book value $3.24. Share: $6.29m. Market cap: $17m.


3.Current ratio. Debt/Current Asset ratio. Debt maturity and interest. Inventory level.
Total current assets: $38.8m. Total liability: $21.3m. Total Debt $1m. Cash $15m. Cash per share $2.38.
Big backlog $110m recorded.


4.Revenue, Earning. Deficit check. Price/Sales ratio.
Revenue 2005-2009: $53m, $77m, $77m, $93m, $64m. 
Earning  2005-2009: (0.47+0.52+0.59+0.68+0.20)/5=$0.49.


5.Dividend history.
2006: $0.06.
2007: 5% stock dividend.
2008: $0.20.
2009: $0.10.
2010: $0.10.

6.Free Cash flow
FCF  2007-2009: $2.8m, $1.5m, $-1.0m.

7.SG&A, R&D expense.
2005 to 2009: $3.5m to $5.0m

8.Management compensation. Options. 
CEO: 450k + 9.5% of profit as bonus. 2007 to 2009: $1.2m, $1.3m, $0.7m
CEO 105k $1.58 options exercised. Sold 80k in open market so far.
Dividend for CEO 2007 to 2009:  $156k, $78k, $78k. Just a fraction of his income. 
Top 4 officer: 2007 to 2009: $1.9m, $2.1m, $1.4m


9.Buy back, insider holding and trading info.
Floyd Warkol (CEO): 780k share.  12.2%.
All Directories:         864k.          13.5%
Floyd set to auto sell his 105k stock earlier 2010. Now has sold around 80k.


10.Employee numbers. Revenue/Employee. Compensation/Employee.
Dec. 31, 2008 and 2009: only 43 full time employees. 

11.Industry comparison.
N/A 

12.Major events.
2008: Bought 4000sqf office+10000 sqf shop space + 5000 sqf storage yard from CEO owned for $2.5m.

13.Concerns.

CEO selling 105k stocks while he only have 780k(12%) shares. Obviously he doesn't want to increase his share in the company.  At current price, his share is worth around just $2.3m, just two times of his annual income for the past 3 years ($0.7m, $1.3m, $1.2m). The dividend he got for the past 3 years is just a fraction of his income.
1)Why is he keeping selling shares?
2)Can we expect him to share profit with share holders?


2. Unstable dividend history. 


14.Others.
Good analysis, but suspicious of promoting the stock. 
http://classicvalueinvestors.com/i/index.php/2010/05/05/ksw-a-deal-in-new-york/


Updated:
Was acquired by others at $5 at year 2012