John Paulson Likes Caesars, Anglo Gold Ashanti, CVI [UPDATED]

John Paulson is the CEO of Paulson & Co. Paulson runs one of the largest hedge funds with over $20 billion under management.

Paulson likes Caesars Entertainment Corp (NASDAQ:CZR), Anglo Gold Ashanti, CVI

Caesars is highly leveraged, and the equity value is only 7% of the capital structure. They have done some clever debt restructuring to bring down debt levels.

The holding company owns all the hotels and gaming facilities but they also have cash and own some online gaming business. Today the assets are worth about 50% of the market cap.

They also have room for growth in many areas.

There are no debt maturities until 2015, so they do have room before the debt is due.

Hotel property valuations are increasing in value, if they get back to 2007 EBITDA levels  and put a 11x multiple, the stock is worth $110, 10x what its trading at today.

 

AngloGold Ashanti Limited (NYSE:AU) Gold prices have increases much quicker than gold stocks. This represents a big opportunity. The company from an operating standpoint is doing well and it is trading at a ten year valuation low. The Gold ETF is much more expensive and you do not get a dividend.

Last stock is CVR Energy, Inc. (NYSE:CVI), which Paulson considers a gift from Carl Icahn.

5:41: He seemed to be a real friend of shareholders and made a bid for the company, and made an outrageous offer, and offered to give money back to shareholders if he sold company for a premium.

Last stock is CVR Energy, Inc. (NYSE:CVI), which Paulson considers a gift from Carl Icahn.

5:43: We bought 9.9% of the company and people can still buy the company now before the tender offer ends. There was no tricks, Icahn really gave a gift to shareholders, which is rare.

5:45: Only paying at 4.4x EBITDA and it has valuable refineries. If they sell this any price about $35, investors get the extra $5.