Crexus Investment Corporation (CXS)

Parth Chopra, Aditya Chaudhry

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

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:

Dividend History

Stock History

• Previous close: $10.58.

• 52-week range: $8.03 - $13.51•3-month:

More information (updated 01/09/12

Sales* 71.53 Mil

Income* 71.07 Mil

Sales Growth* NA

Income Growth* NA

Net Profit Margin 99.36%

Debt/Equity Ratio 0.00

Beta 0.43

EPS 1.29

Forward P/E 8.40

P/E 7.56

Market Cap 810.64 Mil

Shares Outstanding 76.62 Mil

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.

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).

Analyst Expectations

• From MarketWatch: From CNN Money:

• Insider Buying: http://www.marketwatch.com/investing/stock/cxs/insideractions

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

Sources

• http://eresearch.fidelity.com/eresearch/evaluate/fundamentals/earnings.jhtml?stockspage=dividends&symbols=CXS&showPriceLine=no

• http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=CXS&tab=searchtabquotesdark

• 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