I'll jump in with my all-knowing and condescending remarks before Pics has the chance to provide the REEL ANSEWR.
KTOS has a good product line, but took on lots of debt and bought companies at their high price. Now the industry is declining (news flash - defense spending is cyclical.) Sales should be $1.4B vs. $900M if maintaining old trends. This shake-out / consolidation always happens. The DoD will eventually benefit with higher efficiency and lower G&A rates, but KTOS must survive and streamline operations first. High debt, declining industry, and increased competition has caused many companies problems. The debate on this site is if the KTOS management team and BOD can handle this reality and still leave some value for the shareholders.
Pics has the chance to provide the REEL ANSEWR. . They continued to pay ridiculous premiums because they totally failed to grow organically. Krappy management is too busy structuring their pay, bonuses and stock options to have any time to run the shop efficiently or worry about the shareholders (or bag holders for last 9 years). there really is not debate here as Kraptos managements' performance over last 8 years speaks for itself. These worthless individuals should be immediately removed and banned from participating anywhere in the industry.
See how SAI is recognizing the issue and doing something about it. Check out their news today.
Bidnow73, Let me say VERY WELL SAID in your review, Let me now add a few more thoughts .tarting with there is only 29 more trading days untill 3rd Quarter comes to a close on Septemb 28, 2012. Your mention of Debt and High Prices made by Kratos , well that is your view , My View is that the Prices paid are and were and will be seen as a very excellent price by Kratos MGMT, This can now be seen as a tremendious growth opportunity and should the same opportunity happen to be coming today the prices paid by TEAM KRATOS would have been a lot HIGHER and the Terms also would have been a lot higher . Kratos actually drove a very good bargin in relation to now being in CONTROL of so many Government PLATFORMS that the MILITARY GOVERNMENT DEEMS A NECESSITY. There now are several entities really looking at the very select ARENAS that KRATOS NOW IS PLAYING IN, You even mention this in saying Kratos has a lot of very strong Programs that the Government is highley involvedin. . Looking at the Price paid by Kratos and looking at the sudden interest in all of the arenas that KRATOS is considered to be the SOLE SOURCE MFG and there Products are included in RETROFIT MILITARY REHABING CONTRACTSalso KRATOS also builds , manages and has live employees on so many of these platforms ALL WITH ALL OF THE NECESSARY TOP CLEARENCE . This means a lot and so many of the sub contracting corporations just dont have these top clearence personel , KRATOS TEAM Comprises a very high percentage of there employees , actually they may have as many clearence level personel as a lot of government contractors have as total workers , I have heard close to 80 % are classified clearence employees at Kratos and Kratos has close to 4400 total employees , several other other contractors with government contracting are less than even a thousand employees . The point is TEAM KRATOS has the Manpower necessary from selling to building to installing to overseeing to actually manage the built systems , Kratos has it all togeather. Another issue on Debt and the Military Budget the republican Romney last night insisted that when is elected he will revive the Military Budget and bring us to a level of being number in our DEFENSE of AMERICAS INTEREST and gave the percentage of increase for his military budget , it is printed in todays newspaper . You know that when the government needs money they borrow it short term bonds well after the first of the year or even before they will be cashing those in for long term notes , this also is what sort of could happen for banks borrowing money from the Fed would be a converioon from loan package for a long term loan package , Friday the Fed meets it could be seen then or if money solutions are still needed next time , They have the solutions, which would also mean Kratos would be offered other solutions if needed , remember KRATOS IS A TOP PRIZE that will BRING TOP DOLLAR FOR A BUY OUT OR A MERGER and several ways it now can be accomplished THOSE WITH THE MOSTEST WILL GET KRATOS ..This might even interest You that being the movers and shakers will again fall in love with KRATOS , reason accumulation of KRATOS SHARES below the 5.00 dolla share current price, They , meaning the Market makers wanted in and now they are involved and can make some money as KRATOS SOON STARTS ASCENDING , You Shares that Kratos sold to Oak at 5.00 a share had to be accounted for and now it has, so be it off now to the ascending heights , 3rd quarter earnings is almost here and a lot will be known at that time, Im still predicting my 30% gain based on closing of year 2011 December 30th and that closing price was5.96 per share and 2nd share price was 3rd day of JANUARY 2012 and that share of Kratos was 6.13 per share, close today August 30th 2012 was 4.88 . But Kratos has 4 more trading months to get to that 30 %GAIN I think they can get there or further , but what do I know , ???? in a few more months we all see what takes place . looking for any and all comments and should any of you care to make a prediction on percentage increase please post it and I will keep it till year end , or untill the 30 % increase has been attained if prior end of year 2012. Just a note from Picsantee, pics..