Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, embattled commercial lender CapitalSource (NYSE: CSE ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at CapitalSource's business and see what CAPS investors are saying about the stock right now.
CapitalSource facts
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Headquarters (founded)
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Chevy Chase, Maryland (2000)
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Market Cap
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$505.33 million
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Industry
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Credit Services
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Trailing-12-Month Revenue
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$44.3 million
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Management
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Co-Founder/CEO John Delaney
President/CEO Dean Graham
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Return on Equity (average, last three years)
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5.4%
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Dividend Yield
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2.4%
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Competitors
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CIT Group (NYSE: CIT ) ,
Allied Capital (NYSE: ALD ) ,
American Capital (Nasdaq: ACAS )
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CAPS members bullish on CSE also bullish on:
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Apple (Nasdaq: AAPL ) ,
General Electric (NYSE: GE )
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CAPS members bearish on CSE also bearish on:
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Citigroup (NYSE: C )
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Sources: Capital IQ (a division of Standard & Poor's), Yahoo! Finance, and Motley Fool CAPS.
Over on CAPS, 1,705 of the 1,767 members who have rated CapitalSource -- or 96% -- believe the stock will outperform the S&P 500 going forward. These bulls include anxu and Northville.
Late last month, anxu listed several of CapitalSource's sources of strength:
Conservative leverage, ample capital to deploy profitably in this scarce capital environment, savvy management who knows how to negotiate for value, equity trading for way below the cash value, same for book.
In a pitch from one week later, Northville taps the stock as a low-priced, well-managed, and timely opportunity:
This company is in transition at a time when the markets and financial sector is in utter turmoil. What will make this company a winner from the current $1.87 share price is that they now have access to relatively cheap capital to deploy into a market where the interest rate spreads are growing. Delaney and crew have also shown that they know how to employ this capital effectively. Over the long run, this stock is a winner even from my start price.
What do you think about CapitalSource, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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