CapitalSource, Inc. (CSE)

it is undervalued and not wanted

I owned this stock and actually made about 10k on it after my stop loss kicked in and I picked up one of the dividend payments. They have openly acknowledged they are reconsidering their status as a REIT and the status of the dividend. So if you like to take a huge risk on thiings this is the way to go. It seems like the company is evolving itself into a bank and may potentially spin off its medical healthcare REIT business into a separate entity. So who knows which way this thing is going to bounce looking forward. For me personally there is too much risk hinging on whatever the next news release is on this CSE to consider it as a long term stock to hold. I'll be watching CSE in the future. If you are looking for a REIT with a huge dividend but less risk than CSE consider RAS. Again, a huge risk in these uncertain times for financial stocks but worth considering for its fundamentals looking forward.

This financial sector survivor has a very attractive yield. Its relatively solid foundation makes it likely to provide a growth kicker as well.

I like managments creative solutions at solving some of the problems they face. I also like the value proposition of the stock (i.e. undervalued) with a broadbased economic recovery stock should do well. My major concern is their exposure to commercial loans and how deep losses will be in the short term.

Just yesterday FBR capital maintained their Outperform rating and gave a price target of $6. Stock price is 85% off the 2007 high. Price to Book 0.55.

well run company in a hated sector and great dividend to help make the wait easier

This yield is to good to pass up and when the dust settles in the credit markets I think these guys will be recognized as one of the more solid plays.

Smart move to pick up TierOne and great dividend so long term buy and hold.

Jumping in after further correction has bumped the yield to 18%.

Financial company with a crazy yield... tip from another fool.

They will be putting their cash to good use in this market and benifiting over the next few years.

In today's environment, where the market is taking a completely undifferentiated views of credit risk, there is money to be made in identifying the best underwriters. CSE (as well as CCRT, & FMD) is one of those underwriters...and offers a compelling return for investors at today's prices.

CSE is a conservatively capitalized specialty lender. It's low levels of leverage and efforts to secure stable deposit funding will likely reduce volatility in the company's performance going forward. Mgmt. has a long track record of success within their unique niche, and has a significant ownership stake as well.

CSE is engaged in a number of lending activities, but maintains a focus on midsize companies in a few key industries, including health care, real estate, and the leveraged buyout market. Their specialty is providing customized, negotiated debt financings, i.e. non-vanilla loans, where they can get premium pricing. Management attempts to identify specific markets which they feel are underserved and where they can make high risk-adjusted returns by providing services that help the borrower get the transaction done...in other words they look to operate in an environment exactly like today's.

95% of their loans are senior secured, and their loans are written with a zero loss tolerance policy. All loan proposals are simultaneously reviewed by two independent groups within the company. The business loan group evaluates the borrower's business and collateral with a view towards originations. A separate group called Capital Analytics takes a hard, cynical look at the financial statements and projections of the borrower in question. Capital Analytics purpose is to provide forensic due dilligence designed to minimize losses because of fraud and aggressive accounting.

Everything about this company suggests prudent, intelligent underwriting with principal preservation being paramount...not the actions of a company likely to suffer impairments or losses due to an unanticipated amt. of defaults...and especially not likely to suffer from the turmoil within the subprime mortgage arena as the market apparently feels...

CSE is truly an example of the baby being thrown out with the bathwater, pick up a few shares today and get paid almost 15% to wait until the market comes to its senses...and nearly 100% in capital appreciation as it adjusts towards a more sane valuation and yield over the next year of so.

not real estate!

This recession, at least that is what the ANALysts are saying, will pass and CSE will capitalize on it.
when spending by business takes off, again

Looks to me like a baby that's been thrown out with the bath water. I guess we'll see when earnings come out in three days.

13% dividend... halllloooooooooo

Conservative leverage, ample capital to deploy profitably in this scarce capital environment, savvy management who knows how to negotiate for value, equity traded for way below the cash value, same for book. The market is jettison anything financial and this baby has been thrown out with the bath water. Sure the debt rating downgrade will make raising new capital more expensive, but CSE does not need new capital and it has a stable deposit base to get cheap capital from. The waiver that started the recent precipitous drop was obtained because of change in circumstance, Wachovia agreed to the waiver because it knows CSE is a good client.

Motley fool article

Reit changing to a bank, low leverage, good management, this will be a winner long term.