Kratos Defense and Security Solutions Inc (KTOS)

[JohnnyJay]

My thinking: First of all Kratos still has $432M debt obligation and second they won the LCASD contract as the sole winner. That award calls for them to share part of the R&D cost. With those two things in mind, around the first of March they made a (so called Public offering) of around 13 million shares thru Bandel Carano (Oak investment partners) at $7.25 per share. This gave them approx 80 million of working capitol. The purpose, as I understand it, was to put approx 80% toward the debt and use the remainder as working capitol, probably toward the LCASD award (my guess). So as a result of this, the stock dropped from around $8.25 to $7.25. Many individuals and institutional buyer relatively quickly snapped up those shares causing the share price to rise over several weeks to back up in $7.75 to $8 dollar range. Now come to the present, many of them are selling those shares at a nice profit causing the shares to maintain the level. It takes a while to clear out that many shares. Once most of those have cleared out, the stock will begin to rise at a reasonable pace. This will probably occur around the first week in May when the 1st quarter result are announce, assuming those results are good. I have been buying what I am able at these prices. Unfortunately, I had no money to buy when It was at $7.25 but have been able to buy some shares in the $7.70 range. I am in for the long term. Now thru 2022 or later. I see lots of good things on the horizon and in a year, $8.00 is going to look very cheap in my opinion. Be advised, this whole statement is my best guess to answer your question.