To The Moon

$Kratos Defense & Security Solutions(KTOS)$ If you have followed my articles, you might be aware that defence is one sector I kept a watchful eye on.

Recently, I have added KTOS. KTOS is not your everyday household name for a defence company. It has a relatively small market cap of US$4.7B. I was initially attracted by its drone business and that alone is compelling enough for me to invest in its business for the right price.

Why? 

I already have vested interest in a couple of big defence companies. Lately (last year), I started noticing a number of potential defence companies (I had previously discussed them - namely, $AML3D LTD(AL3.AU)$ , $TITOMIC LTD(TTT.AU)$ and $DRONESHIELD LTD(DRO.AU)$  to join my old frame, $ELECTRO OPTIC SYSTEMS HOLDIN(EOS.AU)$ ). The former two were additive manufacturers or 3D printing companies and Droneshield, as the name implies, involved in anti-drones technology. KTOS adds to this drone related business. 

With or without Donald Trump, drones warfare is an eye opener in the Russian - Ukrainian war. Elon Musk accompanied the second coming of Donald Trump, and Elon has clearly articulated his preference of the relatively cheap drones project to the old style extremely expensive warplanes technology development.

Furthermore, KTOS is not just a drone maker. Its latest hypersonic contact worth US$100M shows that. More to come in this space of hypersonic technology race. Not to forget that KTOS is also an avid AI technology user, offering AI-driven drone control technology. 

Looking at the chart, both daily and weekly charts show that it is in an uptrend. With today's early hours increment, RSI is showing that the price might be in a slightly overbought territory. It hits the upper side of the trendline at $31.19 and corrected back down. It would be interesting to see in the next few days if the price falls back to near my entry price of $26.98, which near the bottom of the uptrend line and also around the MA50 support line. In the mid term under the weekly chart, this uptrend appears to be intact.

As long as the MA50 is not broken, I will continue to add to my initial small-ish position.

What not to like about the company?

You tell me! [Cool]  [Sly]  

@TigerStars  @CaptainTiger  @LMSunshine