John Paulson (Trades, Portfolio) is the President and Portfolio Manager of Paulson & Co. Inc, a $19,362 million hedge fund composed of 63 stocks and a quarter to quarter turnover of 11%. The following are the five stocks in the portfolio trading at a low P/E ratio.
Oasis Petroleum Inc (OAS)
The stock is currently trading at 3.30 of P/E. This ratio is ranked higher than 96% of other companies in the Global Oil & Gas E&P.
During the last 12 months, the price dropped by 62% and is now +67.20%Â from its 52-Week Low and -69.38%Â from its 52-week high.
He has bought OAS since Q3 of 2013 and he is now holding 9,805,566 shares at an average price of $47.65/share. The investment represent the 0.84% of his portfolio and is not giving a positive return. The average loss is 62%.
The DCF model gives a fair value of $74.64, indicating the stock is undervalued and has a margin of safety of 76% at current prices.
Profitability & Growth is rated 6/10 and returns are ranked higher than 92% of competitors, with a ROE of 31.70%, a ROA of 9.77% and a ROC of 14.04%.
John Paulson is the largest holder of OAS (he holds 9.57% of shares outstanding), followed by Jim Simons (0.59%) and Paul Singer (0.53%).
Radian Group Inc (RDN)
The stock is currently trading at 4.40 of P/E and is ranked higher than 96% of the other companies in the Global Insurance – Speciality industry.
The price rose by 24% over the last 12 months and is now +45.57%Â from its 52-Week Low and -4.57%Â from its 52-week high. Over the past 12 months, the price rose by 34%.
He bought RDN for the first time during Q4 of 2012 and is now holding 11,043,000 shares at an average price of $7.91 per share and is now returning 154%.
The DCF model gives a fair value of $60.18, indicating the stock is undervalued with a margin of safety of 71%.
Profitability & Growth is rated 4/10 and returns are ranked higher than 93% of other companies in the Global Insurance - Specialty industry.
Lee Ainslie is the largest holder of RDN (he holds 7.81% of Shares Outstanding), followed by John Paulson (5.78%) and Jim Simons (0.9%)
Strategic Hotels & Resorts Inc (BEE)
The stock is currently trading at 8.40 of P/E. Over the past 12 months, the price rose by 11% and is now +13.60%Â from its 52-Week Low and -17.39%Â from its 52-week high.
He bought BEE the first time in late 2010 and then he reduced his position 3 times, reaching now a total of 1,640,000 shares held at an average price of $5.89/share. The investment is now returning a +41%.
The DCF model, gives a fair value of $9.96 that put the stock as overpriced by 18%Â at current prices.
Profitability & Growth is rated 4/10 and returns are ranked higher than 66% of other companies in the Global REIT - Hotel & Motel industry.
Ken Heebner is the largest holder of BEE (he holds 1.63% of Shares Outstanding), followed by Ron Baron (holding 2,177,737 shares or 0.79% of outstanding shares).
Sibanye Gold Ltd (SBGL)
The stock is currently trading at 14.70 of P/E. Over the past 12 months, the price dropped -12% and is now +42.40%Â from its 52-Week Low and -19.81%Â from its 52-week high.
He bought SBGL during the first quarter of 2013 and then he reduced his position on Q4 2014. He is now holding a total of 986,853 shares at an average price of $7.67 per share (currently facing a gain of +44%).
The DCF model, gives a fair value of $8.89 that put the stock as almost fairly priced (overpriced just by 4%).
Profitability & Growth is rated 4/10 and returns are ranked higher than 95% of other companies in the Global Gold industry.
John Burbank is the largest holder of SBGL (he holds 1.62% of Shares Outstanding), followed by Jim Simons (he holds 1,588,100 shares or 0.71% of outstanding shares).
Shire PLC (SHPG)
The stock is currently trading at 14.80 of P/E. Over the past 12 months, the price rose 40% and is now +56.10%Â from its 52-Week Low and -7.96%Â from its 52-week high..
He traded SHPG 7 times since Q3 of 2012 and is now holding 8,328,304 shares at an average price of $211.88/share with a total gain of 22%.
The DCF model says the company is fairly priced at $246.64.
Profitability & Growth is rated 4/10 even if returns are ranked higher than 97% of other companies in the Global Biotechnology industry. Returns are steadily positive (ROE +50%, ROA +27%, ROC +160%) and are at top levels compared to the company’s history
John Paulson is the largest holder of SHPG (he holds 4.17% of Shares Outstanding). On second position there is Andreas Halvorsen, with 529,784 shares or 0.27% of outstanding shares).
