Now we can expect $0.08 pretend Earnings and Zacks can put up another pretend earnings beat on their chart!
I fully expected a drop to $6.50 from last year's $7.68 close, but this is pretty telling. I also would not be surprised with cash flow problems, especially related to any technical or contractual delays with the drone program. However dropping under the Oak purchase price of $5.00 a share is something. There must be something else going on as my fear/greed sensor is pinging.
$5.07 Closing September 14, 2012.
$4.14 Low Week of March 13, 2013.
$4.97 New 52 week low November 18, 2014.
Buy and hold has not worked out so well here. On the other hand, some have made lots of profit trading over this time period.
online barrons youknowwhat
"Mike Crawford, who covers Kratos for B. Riley, sees cash earnings of 62 cents a share in 2012 and 77 cents, on a higher share count, in 2013, as integration efforts take hold and as revenue grows 9%.
"In the next year , cash is likely to pile up on the balance sheet."
'Says one money manager who owns the stock and knows the company well: "The shares are stupidly cheap here. In a bad environment, they are worth eight to 10 times Ebitda, and in a good environment, even more." .'
I'm still looking for the quote where the Analyst said that retail investors were just too stupid to figure out the value of highly leveraged acquisitions. Kind of like US voters being too stupid to understand what was happening with the passage of Obamacare.
Thank you for your post. I just want to go point by point and respond with my horror stories, but that wouldn't be prudent. Suffice it to say that these problems occur in many if not most companies. I am actually encouraged with your comment about the high concern around GAAP and SOX. In combining multiple small businesses with a history of being more entrepreneurial, and perhaps less procedure driven ;) it is most important to standardize on these, and core ethics, and vision/mission. After those are ingrained, SEC, FAR, CAS, EVMS, MMAS, an the myriad of other constraints and regulations become more manageable. My guess is that D&T and the bondholders/credit agencies are driving such actions, and they are a necessary step.
On the bright side, I think that the RIFs are near the end, so that should improve morale.
Quality first. Cost and Schedule will follow.
Kratos Defense & Security Solutions, Inc.’s ISS Governance QuickScore as of Nov 1, 2014 is 10. The pillar scores are Audit: 10; Board: 8; Shareholder Rights: 10; Compensation: 9.
General Electric Company’s ISS Governance QuickScore as of Nov 1, 2014 is 2. The pillar scores are Audit: 1; Board: 5; Shareholder Rights: 1; Compensation: 6.
Pics - You certainly heard things differently than I did. I heard a presentation from a man that was having even greater difficulty in reconciling the previous rosy projections to the stark realities of actual performance. I heard continuing softball questions from second or third tier Analysts still seemingly willing to lap up the story line. I heard a question about shareholder value dismissed with a response tantamount to "trust me."
I am quite familiar with corporate long range planning, as well as what it means to announce that divestitures are being considered. It means what I said years ago, that being KTOS overpaid for its acquisitions financed by junk bonds with an exorbitant interest rate that would take seven to ten years to digest. I see a $130MM Goodwill write down and a 38MM (or more) dilutive share offering in the future. It has less to do with future sales than cleaning up the past. However, working capital management will become increasingly more important as the drone program comes on line. The warning had been issued to counter the sub-standard analysis and overly optimistic projections made by hip pocket stock analysts, and the current stock price vindicates that warning. You may now continue your crowing about potential ($7 Billion+) contract wins as other posters remain puzzled about where the revenues went from their last $7.8 Billion contract win.
I hope you recover quickly from your digestion troubles. It usually takes more time to heal than you would like.
Blatant deception. The entire pot of money that the Navy had to spend on the SeaPort-e contract for all contractors was $7.9 billion max over five years. KTOS later clarified that (this renewal contract for them) was expected to generate around $100-$150 million annual revenues. What a great day for short sellers that was.
$5.07 On the DoD's Shopping List Sept. 15, 2012 | Barrons
$4.80 A Season for Winners Dec. 29, 2012 | Barrons
$4.88 Overview of Barron's 2012 Stock Picks Jan. 19, 2013 | Barrons
$5.85 The Latest Habits of the Smart and Dumb Money May 23, 2013 | Barrons
$6.57 Scorecard of Barron's 2012 Bullish and Bearish Picks July 6, 2013 | Barrons
$8.35 A Defense Stock With 40% Upside Oct. 2, 2013 | Barrons
$7.19 Cheap Defense Contractor That Can Rise 50% Jan. 29, 2014 | Barrons
$6.08 Kratos: A Small Defense Firm With Big Upside Oct. 8, 2014 | Barrons
$5.75 New 52 week low set 11/10/2014