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Spruce Point Updates Its Kratos Short

New York-based activist Spruce Point Capital today reiterated its short call on Kratos Defense & Security Solutions. The firm said in a release:

"Spruce Point has conducted a critical forensic analysis of the Company's financial guidance, 10-Q filing, and conference call disclosures. We believe the current management has issued a potentially deceptive revision to its continuing free cash flow guidance, and left clues to suggest its cash balances are not accurately stated.

As a result of our investigative analysis, we continue to reiterate caution and a "Strong Sell" opinion on Kratos. It is easy to justify 45% - 75% downside risk."

The firm originally called a short position in Kratos in March 2018.