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Rudyard Kipling wrote “If you can trust yourself when all men doubt you but make allowance for their doubting too,” then you’ll be a man. But that trust shown by early investors in financials has resulted in more of a ‘poorer man’. I believe just as the financial sector goes through typical complete purge by ‘investors’, it’s high time to look at financial company, which is building a financial institution in this turmoil - Capital Source Inc. (CSE).

Capital Source is an almost $3B market cap leading middle market finance company, which was providing loans to SMB (small medium businesses) a

Filed under: Bad news, Consumer experience, MasterCard Inc'A' (MA), Economic data, Stocks to Buy, Newcastle Investment (NCT)

You know, I can't take much more of the financial crisis. That's because I own Newcastle Investment (NYSE: NCT) and CapitalSource (NYSE: CSE). I'm kind of hoping we get out of the mess brought on by the housing-bubble pop and the mark-to-market devaluation so that these stocks will rise again. As we continue through this recession, another problem may soon assert itself.

According to this article, consumers are starting to rely on their credit cards a little too much.

CapitalSource is sort of a lender of last resort to small and medium-sized companies.  They traffic is mezzanine and senior debt, asset-backed financing, and real estate lending.  These are all sectors that have been under pressure lately and it shows in the stock price.  Shares have just about been cut in half in the last year.  The stock is trading at about 5x forward earnings, a 0.40 PEG ratio,  slightly under book value.  It's yield is over 20%.  So we know that it's cheap.
  What I really like about the company is that it continues to hew to it's core competency of vulture investin