KSW Inc. (AMEX:KSW) shares have rose more than six percent since Richard Silberberg's Moab Capital Partners disclosed a 6.2 percent stake in the company calling its shares "significantly undervalued" in a Schedule 13D/A filing late last week. Many shareholders are hoping that this new attention could help the company unlock value.

"[We] purchased the shares in open market transactions because in their opinion, the highly-regarded management team of KSW, Inc. has created a unique value-engineering business proposition which is driving the issuer’s superior growth in backlog, revenue and earnings margins," said Moab Capital Partners in a statement.

KSW furnishes and installs heating, ventilation and air conditioning (HVAC) systems and process piping systems for institutional, industrial, commercial, high-rise residential and public works projects, which is quickly becoming a hot business in places like New York City where the company operates.

KSW also continues to post strong earnings. Early last month, the company reported net income of $0.12 per share compared to $0.10 per share last year. If you take stock compensation and other expenses out of that number, they made $0.14 per share - a 40% year-over-year rise in net income. More, this is one declining revenues as a result of more difficult market conditions that are just now starting to turn around.

Moab Capital Partners said, "[We] believe the shares are significantly undervalued as of August 20, 2007 ... [the company] is well capitalized and poised to expand its business within the New York City metropolitan market and beyond." Combined, these factors make KSW a stock worth watching!

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