% | $
Quotes you view appear here for quick access.

Crexus Investment Corp. Message Board

  • mullalarmbereitschaft mullalarmbereitschaft Nov 11, 2011 10:04 AM Flag

    FBR Downgrades 2 days after Great Conf Call?

    from 12 to 9?
    Que Pasa?

    Can't imagine their rationale and it's not posted.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Thanks for posting. 2Q conference call, CEO said target yield is 9-11%. I took that to mean 9-11% on the $11.50 stock offering.

    • Apparently the recent downgrades are looking beyond the Barclays loan discount profit potential to when they have to match current results with just new loans with no discount.

      I happen to think that they considered this situation when they turned down the STWD deal. I think that was one reason they got European knowledgeable people on board. They also can possible leaverage their present capital like NLY does and they used to do and even go back to agency loans.

      It is true that interest rates are very, very low (but only for those with top credit rating)--many others will be required to pay much, much more and that is where CXS will shine as they have proven expertise.

      I think their target yield is in the same area as NLY.

    • Nope. FBR reiterates outperform on NLY at 11/3/3011.

    • FBR is full of XXIT.

      Zacks #1 Rank Additions for Friday - Tale of the Tape
      8:14a ET November 11, 2011 (
      Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today:

      Garmin Ltd (GRMN)
      Advance Auto Parts (AAP)
      Cal-Maine Foods (CALM)
      Cell Therapeutics (CTIC)
      Crexus Investment (CXS)

    • I do not understand that at all. I listened to the CC and the CS analyst was nearly giddy in his admiration for the job done by CXS management. Can you imagine selling stock for $11.50, and having an analyst tell you it is now worth $9? MGMT was positively effusive over the opportunities they see in CRE. Said the returns now are "generational". You only see these once in a generation.

      • 1 Reply to achilles197474
      • The first two day reaction as definitely higher.

        The book now 11.92, with inference of higher yet value- AND Higher div.
        Admittedy the Barclays portfoli was 'Lumpy' but seems to have been a Net plus.

        One neg I noticed.
        The Barclays portfolio was bought at 20% disct to face.
        Meaning it it was worth Par/100% the Book value would go up 14% since it's now 70% of the company.
        But the book only went up 2.6% from 11.64 to 11.92.
        Some of the increase may not be realized yet. but some was written down; notable a 60% non-performing chunk.

        There may be other Dead wood in there- but overall some more realized gains and work-outs/sales on the crap.

        PLUS, as of Sept 30 they had ZERO leverage.
        Meaning they can add ALOT more property and increase the div.