Kratos Defense and Security Solutions (NASDAQ:KTOS)

CAPS Rating: 5 out of 5

An independent provider of outsourced engineering and network deployment services, security systems engineering and integration services and other technical services for the wireless communications industry, the U.S. government, and enterprise customers.

Recs

2
Player Avatar NeroSagetrade (91.06) Submitted: 10/3/2007 2:37:55 AM : Outperform Start Price: $2.73 KTOS Score: +130.89

Going long on the old WFII requires either brass balls or a clean lack of common sense. I'd like to think that my recommendation comes with a bit of both. WFII has never had an issue presenting itself as an enormous value to investors and even after a nice rise off its lows, its still shows itself as a major value. 1.1 times book valuation, 0.6 times sales and 7.8 times future earnings. Every now and then KTOS is able to meet those expectations and when they do the investors are greatly rewarded, but more often than not they have a hard time keeping to profit expectations. My advice with KTOS has always been that if they are profitable, it will stay above $2 and so it has. With profitability looking solid for 2008 and the government remaining one of their customers, I'll stick around for another gain or beating, whichever comes first.

Nero
Sagetrade

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