Kratos Defense and Security Solutions Inc (KTOS)

[str8_chuter]

Well since your post, we've seen that KTOS management is the same as it has always been. Forever has an excuse as to why the company missed its estimates or timelines.

This time around they had multiple excuses. The earthquakes out at China Lake last summer which delayed a Gremlins test flight, the 2020 CR that dragged out into December and the anomaly investigation on the 3rd test flight for Valkyrie which dragged on for four months.

Surely next quarterly CC, they'll trot out CV-19 as an excuse. You can probably also bet they'll trot out some blame for any Gremlins delay on the buyout of Dynetics by Leidos Holdings (announced in December).

Bottom line, 2020 is a lost year. Even if the company hits the high end of its sales forecast this will be just mid single-digit growth. Worse still, management tells us that there will be no Valkyrie deliveries, Project Airwolf deliveries or Gremlins deliveries until 2021.

Stock is dead money for the rest of the year. Chart reflecting this. Support at 11, resistance at 16 and 17.