% | $
Quotes you view appear here for quick access.

Kratos Defense & Security Solutions, Inc. Message Board

  • stockgirlscolon stockgirlscolon Apr 6, 2013 9:48 PM Flag

    I have no position here, but...

    have watched this company for some time. I know folks here - on both sides - have very strong feelings.
    My question is actually rather complicated, but it boils down to this: Why are they losing almost $2.50 per share: when is the last time this company actually made money: and can anybody see actual profitability in the near or even mid-term? The long term chart is actually not inspiring to those who might consider taking a long position here....

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • KTOS Net Income

      2006 - (46.7 MM)
      2007 - (28.2 MM)
      2008 - (106.0 MM)
      2009 - (38.3 MM)
      2010 - 14.6 MM
      2011 - (24.7 MM)
      2012 - (113.0 MM)

      Much of the big loss in 2012 was related to the write down of Goodwill prior to 2006 where KTOS overpaid for prior acquisitions. You are expected to believe that the current Goodwill balance is peachy keen and that KTOS has not overpaid for any acquisitions since 2006. You are also expected to believe that cash is going to "pile up" on the balance sheet at 0.25% interest in order to pay down some of the long term 9.5% bank debt in 15 months. You are also expected to believe that KTOS' revenues will be immune from sequestration cuts and that KTOS will start to turn a profit in 2013 Q3. If you believe that, join the dupes from Barrons who copied B. Riley's crib notes and predicted a KTOS share price of $11.00 on 9/15/2013.

      As so eloquently reminded by fellow poster EDM - caveat emptor, which roughly translates into "there's one born every minute."

      "Anybody can acquire companies. The hard part is integrating them in order to make them work profitably together."

      Good luck in your investments.

4.175+0.055(+1.33%)12:16 PMEDT