One-Hour Analysis of Kratos Defense & Security Systems

Not in Value Line, So From Various Sources

  • At half of book value this stock seems very cheap
  • But with a tremendous amount of goodwill, we would use 90% of sales as a better metric, which is not real cheap
  • This stock is essentially like a private equity deal, lots of debt and a sliver of equity
  • Would be tempted to throw the stock out, without too much more work except there are many interesting things to study here
  • Debt is trading above par, and interest is well covered
  • CEO Demarco is a great salesman, he tells a fascinating story
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