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$10.52 -0.38 (-3.49%)
7/3/2008 1:08 PM

CapitalSource, Inc. (CSE)

CAPS Rating:
****

The Company operate as a real estate investment trust and provide senior and subordinated commercial loans, invest in real estate, engage in asset management and servicing activities.

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Avatar bigdividends (21.20) Submitted: 5/14/08 1:34 AM : Outperform Start Price: $15.35 CSE Score: -22.82

As long as they have access to credit, they should be fine. As of mid may, they just secured two credit lines. If the Fremont transaction goes through, they will acquire more access to relatively cheap money. People speculated that the credit crunch was going to destroy this company. In hindsight, it seems more speculative than reality.

I would not be surprised if this company starts to cherry pick some of the assets of other distressed companies (ie; Fremont). If you start seeing this happen, it is a great sign that CSE is on the right track.

They do need to re evaluate the dividend. Cash is king now. There may be better shareholder value in cutting the dividend and finding bargin assets.

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