Kratos Defense & Security Solutions, Inc, (KTOS), headquartered in San Diego, California, provides defense, information technology, information assurance and security products for the U.S. federal government, commercial enterprises and state and local agencies. Services include information technology, C4ISR, weapon systems maintenance, engineering services, public safety services, workforce learning and performance development. Wireless Facilities Incorporated, Kratos Defense's former company name, had previously focused on the telecommunications market, but upon the hiring of Eric DeMarco (formerly of Titan Corporation) as Chief Executive in 2003, the board of directors re-directed the company's mission to providing professional services to the US government, primarily accomplished through mergers and acquisitions of other smaller defense-oriented companies.
Reported after close yesterday (5/4/16) Earnings: EPS -$0.13 Revenue $153M Estimates: EPS -$0.09 Revenue $154.5M Down 6.94% in pre-market
Only thing more entertaining than watching Jim Cramer, is watching what happens when he features a company on his show! KTOS up almost 7% after hours (after show) ..... Good buy Monday morning??....
Kratos Defense to launch 10.35M-share offering http://www.seekingalpha.com/news/3248143 I'm a little late on this one.. Saw it a few days ago, then dug around some and found this too Kratos Defense to launch 11.67M-share offering http://www.seekingalpha.com/news/3225752 Is this normal?.. TWO secondary offerings in six months??? Both came on the back of new government contracts... And both just after (or near) 52 week highs I would say we have a selling climax, secondary test, AND an automatic reaction on the chart..... But how can supply be absorbed after dumping 10 million shares back into the market (or 21 million in six months)?? In November, it only took 2 weeks to make a new high after the offering.... Who thinks we'll see that again??
Yea... Everyone else is tryin to make friends, he's just tryin to make ya some money! I enjoy the show, and his enthusiasm... I even like all the funny noises he makes on that machine I only take it at face value though.. Some of the episodes have been very informative.. At least for me..... But I wouldn't doubt for a minute that there's more going on behind the scenes... When money is involved, there always is....... Same could be said about any and every other news source we obsess over on a daily basis
I've often found that Cramer's timing is often off...on purpose no doubt. This chart looks pretty good though. On the weekly it tested the supply line at 9.19 and sold off, tried to retest again 2 weeks later, came up short and sold off hard. 2 weeks later on similar high volume tried to retest again but had less effect not even coming close and then sold off last week. Appears like it probably needs to test the low of bar from week before last at 6.96, but let's zoom in on the daily chart. Weekly: On the daily the high volume stick did not occur until they gapped it over the the 8.03 supply line. A lot of effort (volume) there but not much effect. But now it is pulling back to test that gap-down area under 8.03 on lighter volume. Not bad but that effort vs result bar (high volume with little upside result) is worrisome because the high demand was undoubtedly met with heavy selling. A low volume test into the $7 area would be nice to see to show that the selling has dried up. Daily:
What's throwing me off is the adding of shares to the market We're using PRICE and VOLUME to analyze supply and demand right?? Well, that gap down on 3/2 had nothing to do with either.... The PRICE was decided by an underwriter, and the VOLUME was dumped into the market by a bank So how do you play the game when they keep changing the score board??
Price is always decided by a seller and a buyer. In this case, the stock was offered at a price and people bought it. Same as always. Who in the market bought it, the CM or public? That is what matters. Did the shares get put away and locked up, or did the skittish public buy most of them? There is a difference between the float and the shares actually available for trading. The shares the public (funds and specs) own can generally be regarded as available for trading at a moments notice. However, when the CM buys he has staying power and will lock them away to keep the supply available to the market low in order to cause the price to rise (supply & demand), that is until his price arrives and his campaign is complete. So yeah, there was some noise printed on price & volume, but it is real. These were shares that came to the market and were traded. Going forward need to see if the supply of stock coming to the market dries up. A test lower on low volume will tell us there is little supply available; that the CM has the majority of shares tied up.
