{
  "docId": "019dd923-622c-750b-8b98-64474d65435b",
  "docSlug": "68bd393edc75",
  "documentTitle": "Kratos Defense & Security Solutions (KTOS)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-03-16 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 45,
  "pageCount": 49,
  "prevPage": 44,
  "nextPage": 46,
  "slideType": "comparison_table",
  "function": "compare_peers",
  "density": "dense",
  "nDataPoints": 20,
  "notes": "The slide uses a 'before-after' comparison of shareholder composition to support the thesis that fundamental interest has waned.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "data_table"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-64474d65435b/45",
  "deckHref": "/decks/019dd923-622c-750b-8b98-64474d65435b",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-64474d65435b.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-64474d65435b#slide-45",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Spruce Point is concerned that long-time fundamental growth owners have either given up or rotated out of Kratos, and have not returned despite the renewed optimism for Unmanned Systems. Instead, we find the disturbing reality that Kratos’ share price has been driven by rules-based index and ETF buying",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0935-737e-8dc3-984df6cc4395",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.94,
        "x": 0.03,
        "y": 0.205
      },
      "kind": "paragraph",
      "text": "Spruce Point is concerned that long-time fundamental growth owners have either given up or rotated out of Kratos, and have not returned despite the renewed optimism for Unmanned Systems. Instead, we find the disturbing reality that Kratos' share price has been driven by rules-based index and ETF buying",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "52a1d324-33a9-4bc6-b4c8-28d6d1400dbc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.2,
        "x": 0.13,
        "y": 0.94
      },
      "kind": "source-note",
      "text": "Source: Kratos 2012 Proxy Statement",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d688b02d-cc92-4cb7-a921-a6240ff0a772",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.22,
        "w": 0.94,
        "x": 0.03,
        "y": 0.355
      },
      "kind": "table",
      "text": "Kratos Shareholder Base Today table",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "965cdaec-6f0c-4b30-a3d3-34c52a57272a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.22,
        "w": 0.94,
        "x": 0.03,
        "y": 0.665
      },
      "kind": "table",
      "text": "Kratos Shareholder Base 5 years Ago In 2012 table",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d7ad4295-d0b7-48aa-b387-6fcc0ac9509c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.65,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "Index Funds and ETFs Driving KTOS Share Price, Not Fundamental Institutions",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9662ba9c-fe13-46f0-b48f-918d792a3e7f",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "before-after-framing",
      "slug": null,
      "matchId": "28816d05-ff99-413c-b5e5-7a7b2b605ca3",
      "evidence": "Comparison of shareholder base between 2012 and current day to show a shift in investor type.",
      "confidence": 1
    }
  ],
  "arcBeats": [
    {
      "to": 49,
      "from": 32,
      "beatId": "c8c5750b-e949-493d-b2c9-6a5df35ee395",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Solution",
      "beatSlug": "problem-agitate-solution-solution-provide-relief",
      "evidence": "The deck presents Spruce Point's solution, a strong sell rating with 40-70% downside risk.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Resolution",
      "parentBeatSlug": "resolution"
    }
  ],
  "loops": [
    {
      "to": 45,
      "from": 42,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "6ca30a6c-992a-4f15-aa92-b45b12be8267",
      "evidence": "The deck presents a comparison table showing Kratos' share price driven by passive index/ETF flows.",
      "position": 2,
      "objective": "Highlight the risks of not selling Kratos",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}