CapitalSource, Inc. (NYSE:CSE)

Great company with high dividend yield. Current dividend yield of over 20% is way too high. When the financial panic is over this will soar.

this is selling unjustifiably low right now. look for it to triple in a few years

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.

LOOK at that dividend! Hair will grow back from this major haircut!

Shorts are wrong. Squeeze will make a good run

has the cost to be the boss

Not just an REIT..a commercial REIT which wont get hit nearly as hard as residential REITs...but has been dragged down along with other REIZTs because of the mortgage mess.when others realize they've punished CSE unfairly, its off to the races..Oh..and its paying a 22% dividend....

good yield, professional mgmt. My only concern is not having transparency on their funding match ( Asset and Liability maturity structures) Improved funding/capital structure in 2007 ....

Just starting at this, these are my first CAPS picks, so I'm selecting the best of the stocks I own.

Too cheap and dividend too high not to pick up...beaten down by short term worries but good in the long run

Seems like everything that describes itself as a lender or in real estate is getting creamed these days. From what I've read these guys are managing their cash pretty well and are positioned to take advantage of the buying opportunities the market is offering. Here's hoping.

The current 20% yield is pretty sweet too.

great dividend yield

Even with a likely cut to the dividend, this will still have a high yield.

Down with the financial bathwater, I think this one is the baby. Targets a challenging niche, unique double-review for credit analysis, and doesn't need to go overboard with leverage since they can earn a fine return from their other strengths. Competitors are exiting the space, so the downturn in financials should lead to a compounded upturn when it comes.

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-value-stocks.aspx?source=iflfollnk0000003 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.

Here's a source for capital appreciation. Capital Source provides financing for Mid-sized companies. They make loans to these companies and generally collect a much better "spread" than banks do. It has a REIT structure which delivers a nice dividend (right now around 15%). This company is profitable and sits between the big financial boys and the small regional players. This gives them leverage to make more on their loans. Recent financial scares in the industry due to charge offs have brought the share price to a 52 week low. This is a good, profitable, well-run company sitting at a time when its industry and business is out of favor due to credit fears. Commercial credit at this point is not a culprit in this credit crisis so the market is handing us a dollar and saying its worth less than fifty cents. Yes, there's some risk but with heavy insider ownership (around 40%) the people running the company want to win too (and keep that dividend flowing). I believe that this is source of capital. Thank you Mr. Market, outperform!

Cheap money offers plenty of opportunity to lend. CSE lends in a relatively stable market like healthcare facilities and commercial real estate. 17% dividend to keep you interested even in down mARKET.

Capital Source is the bomb

It's Grrrrreat!