|Written by GSCR Staff|
|Friday, 22 March 2013 08:54|
Good morning! Several weeks ago we highlighted LifeLock (NYSE – LOCK), a home security stock which is up over 13% since then. This sector is on the rise.
Kratos Defense and Security Solutions, Inc. (NASDAQ – KTOS - $5.09) is not a home security stock, but a unique play in national security. The company offers a variety of products and services through its two segments: Government Solutions and Public Safety & Security. The Government Solutions segments products are focused on weapon systems containment. The Public Safety and Security segment solutions consists of designing, installing, and servicing building technologies that protect people, critical infrastructure, assets, and information.
Earlier this week the Company received a multi-million dollar order to provide satellite interference detection and quality service monitoring through its subsidiary SAT Corporation. The deal was reached with the industry’s largest company for use of the Monics product, which is a satellite and telecommunications measurement and interference product provided by Kratos. This is a huge deal for KTOS, and should be the catalyst for the Company’s return to profitability.
KTOS continues to innovate with new products and services. Earlier this week the Company launched a new version of its satID(R), one of the leading RF Interference (RFI) geolocation products. Additionally, Kratos introduced a new SATCOM Cybersecurity Assessment service that was designed to address the threats and unique requirements of satellite industry. This product will also address the forthcoming U,S, government cyber security legislation requiring the application of NIST Information Assurance for U.S. critical infrastructure, which includes satellites.
The stock is up from $4.25 March 1 and has traded at close to 700,000 shares per day on average over the last three months. The EMA and MACD analysis are very bullish from the technical perspective as well. We think the run continues back to the 52-week high levels of $6.25.
Have a great day!
Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.
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