China Security and Surveillance Technology (OTC:CSCT) shares may soon get a much needed boost from Conrad Bringjourn's Clinton Group. The activist hedge fund sent a letter to the company commending management's execution to date but cautioning that its shares were substantially undervalued. Shareholders are hoping that the hedge fund can work with CSCT to unlock value for everyone.

China Security and Surveillance is trading below its value for several reasons. First, the company is traded over-the-counter which makes it much less liquid and thus less preferable for investors. Secondly, there is very little in terms of analyst coverage or investor relations, which makes it difficult for investors to find the company. Combined, these factors have led to a company that is trading at just 12.1x consensus 2008 EPS with a PEG of only 0.4x - making the stock extremely undervalued given management's execution!

The Clinton Group offered to help the company obtain a timely listing on the New York Stock Exchange (NYSE) that would help it enable it to offer investors greater liquidity while also attracting more attention. More, E-House China's recent IPO on the NYSE and subsequent dramatic rise is a clear indication of Wall Street's appetite for successful Chinese firms. Shareholders are hoping for similar results from this company after a listing.

The Clinton Group offered to support and advise the company in finding two independent directors as well as introducing the company to equity research analysts and prominent investment banks. If successful in generating additional interest and liquidity in the company, CSCT could see a substantial rise in share value. This makes the stock one worth watching!