Replies to post #408 on Kratos Defense and Security Solutions Inc (KTOS)

[sdy]

It has been my experience that during periods of consolidation, good press release is bad news for share holders and during times of bull run, any press release, even bad, is good for share holders. This anecdotal experience was first marked by the Challenger explosion in '86. Devastating to the bulk of us 'general public'. However, within a week the value of the company making the faulty equipment had jumped 40% in my portfolio.

[str8_chuter]

The base value of the contract is $60 million but PR doesn't specify the period of performance.

Likely not all in one year. Assume at least 18 months, potentially 2 to 3 years. Not anything close to significant.

Forget the $23 million of options on the contract. Always assume those won't get funded, especially with the new administration that already has demonstrated the defense budget will have difficulty keeping pace with inflation in the next four years.

KTOS has a very long track record of issuing press releases for contract wins that are but a fraction of the headline numbers.