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Microcap & Penny Stocks : The Microcap Kitchen: Stocks 5¢ to $5

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From: gcrispin7/1/2009 11:05:27 AM
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KTOS is an interesting play that I've been accumulating the last two weeks. Starting out as a wireless company, Kratos has morphed into a defense related company that specializes in information technology. This press release summarizes the changes in the company the last year.

finance.yahoo.com

Despite the non-cash impairment charges the last two quarters where the company has essentially written down the goodwill from their recent acquisitions, Kratos is has been increasing their EBIDTA. Below are highlights from their first quarter.

* Revenues of $83.9 million increase 23% over previous year first
quarter
* Pro forma EBITDA increases 73% percent over previous year first
quarter
* Company reports fifth sequential quarterly EBITDA increase
* Cash flow generated from operations of $7.0 million
* Cash on balance sheet of $14.5 million at reporting date
* Additional Non-cash, Non-operational SFAS No. 142 Goodwill
Impairment Charge Recorded Due to Current Economic and Market
Conditions

Insider buying has been positive on the stock.

finance.yahoo.com

Short interest is non-existant

nasdaq.com

Institutional ownership has some recognizable names, most notably Brandywine Asset Management.

nasdaq.com

More importantly, the company has positioned itself in areas of the defense budget where I believe business will grow. Three contract wins in June highlights their expertise in cyber attacks, and the use of unmanned vehicles of all types ( in the air and underwater). The company recently announced a 600 million backlog of which 140 million is funded. The recent CC's and investor presentations will will provide greater details about the company.

ir.kratosdefense.com
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