CapitalSource, Inc. (CSE)

TMayea (21.73) Submitted: 3/29/08 12:59 PM : Start Price: $9.14 CSE Score: 39.61

I own 1,000 shs, bought at $17.33. Imagine my surprise at seeing it close yesterday at $9.43. What a loss!!





Monday I will buy another 1,000 shs.





Every senior exec is either a CPA, lawyer, or both!


Each has been in the lending business for years. The main focus is the healthcare field.





The main financing method is(I believe, have not found perfect info) the "Pool". The Pool puts up the money and gets a mortgage on a property. Just one property, not 10 thousand properties! The Pool knows what it has and can easily value their asset.





Even the competition has endorsed CSE's business method, saying they are hard nosed and want to be able to get their money back.





This is a REIT. They pay out a % of their cash each year. That cash will vary from year to year(that is what I have against REIT's).


So the nice div they have now will vary, depending on their cash flow(funds from operations). Even if they drop the div to $2, at this price that is still over 20%! Don't let the div % scare you. Do the DD and you will see the co. has some staying power.

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