Use access key #2 to skip to page content.
$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.

View All Commentary (CSE)

Recs

3

Avatar VintonCounty (< 20) Submitted: 3/16/08 1:28 AM : Underperform Start Price: $11.31 CSE Score: 6.81

I checked data at Morningstar. Dividend yield is 19.6%, but trailing P/E is only 13.6 (earnings yield of 7.35%). These values are inconsistent. ROA has decreased monotonically since 2003, and for calendar 2007 was only 1.06%. The report at http://www.fool.com/investing/value/2008/03/10/5-top-rated-v... says CSE has a "tax-free REIT status," yet its effective corporate income tax rate is 33.2%. Also, asset turnover is half the level it was in 2005.

These simple facts scream a warning to me.

Report this Post Replies: 1 | Reply

Avatar Calidreams (< 20) Submitted: 5/05/08 5:27 PM

Recs: 1 | Rec This

IF you read the report right the report says that it's tax free status on the gains you get if it's in your IRA or Roth IRA. AKA the dividends you make are tax free when put into a retirement account because of it's REIT status. They are only recomending this stock for Retirement accounts.

Report this Post Reply

Featured Broker Partners