this company was a telecommunications provider services and equipment. If they stayed with that model, they would be out of business now. It's been difficult during the Demarco years I know, but the model looks good if they can manage the debt. Not sure about the telecom industry pitfalls? Check the fortunes of Lucent now Alcatel Lucent, total debacle, from $70 a share to nothing and loss of much more wealth than Kratos
your facts are irrefutable. but didn't he have success with his previous company? Titan? Company grew and was bought out I think. It seems like there's a steady in flow of contracts here with some diversity coming into play. If they can get the debt/cash flow under control the equity model looks solid, if, if investors can withstand the short plays at earnings report time. The cash situation is primary risk here IMHO
Very painful for long-term holders, not doubt. I worked with Alcatel, Lucent and many similar companies large and small from the beginning of the high-tech boom. Its very sad how everything imploded and has never really come back. Large companies are a shadow of their former selves, start-ups are at or near record lows, consolidation continues. All this has hurt innovation and makes the U.S. more vulnerable to foreign companies than it should be.
I get frustrated that KTOS PPS isn't higher, but sometimes lose sight of the fact that investment timelines are often best measured by 3-5 years. IMHO KTOS has a good combination of focus and direction, yet remains diversified to weather economic uncertainty and unrest worldwide...and are in a good position for brighter quarters and years ahead. I look forward to listening more carefully to future conference calls and networking with my friends in the industry about their prospects.