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Crexus Investment Corporation (CXS) Parth Chopra, Aditya Chaudhry.

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Presentation on theme: "Crexus Investment Corporation (CXS) Parth Chopra, Aditya Chaudhry."— Presentation transcript:

1 Crexus Investment Corporation (CXS) Parth Chopra, Aditya Chaudhry

2 Profile Mainly a commercial real estate finance company Invests and manages the following: o Commercial Mortgage-Backed Securities (CMBS) o Other Commercial real estate Located in Maryland Risk Adjusted investing Classified as a Real Estate Investment Trust (REIT) and thus pays 90% of its earnings to shareholders

3 Dividends CXS is required to pay out 90% of its earnings per quarter in the form of dividends. Dividends have continued to rise because of increased earnings as shown in the following data:

4 Dividend History

5 Stock History Previous close: $10.58. 52-week range: $8.03 - $13.51 3-month:

6 More information (updated 01/09/12 Sales*71.53 Mil Income*71.07 Mil Sales Growth*NA Income Growth*NA Net Profit Margin99.36% Debt/Equity Ratio0.00 Beta0.43 EPS1.29 Forward P/E8.40 P/E7.56 Market Cap810.64 Mil Shares Outstanding76.62 Mil

7 Fundamentals Met EPS and Sales expectations for last four quarters. Exceeded both by 9.02% 2nd quarter. Sales expected to have grown over 530% in 2011. EPS expected to have grown 112% in 2011. P/E ratio of 8.23. Earnings report Jan. 27.

8 Technicals The StockScouter measure of relative price change and consistency is flat. Previous day's closing price was slightly above 50-day moving average. (MSN StockScouter).

9 Analyst Expectations From MarketWatch:From CNN Money: Insider Buying: http://www.marketwatch.com/investing/stock/cxs/insideractions http://www.marketwatch.com/investing/stock/cxs/insideractions

10 Recomendations Buy at market price. Limit sell at about $12.50, hold at least untill next dividends are payed. Expected Dividend Return of about 35 cents (conservative estimate) per stock. Total Return: 12 shares * ($2.00 + $0.35) = $28.20

11 Sources http://eresearch.fidelity.com/eresearch/evaluate/fun damentals/earnings.jhtml?stockspage=dividends&symb ols=CXS&showPriceLine=no http://eresearch.fidelity.com/eresearch/evaluate/fun damentals/earnings.jhtml?stockspage=dividends&symb ols=CXS&showPriceLine=no http://finapps.forbes.com/finapps/jsp/finance/compi nfo/CIAtAGlance.jsp?tkr=CXS&tab=searchtabquotesdar k http://finapps.forbes.com/finapps/jsp/finance/compi nfo/CIAtAGlance.jsp?tkr=CXS&tab=searchtabquotesdar k http://www.crexusinvestment.com/site/aboutus.aspx http://www.marketwatch.com/investing/sto ck/cxs/analystestimates http://money.cnn.com/quote/quote.html?symb=CXS


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