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Compiling comments that experts make about stocks while on public TV.

2011-06-21

Opinion for CVR Energy (CVI-N)

Signal Price Bias Subject Owned
TOP PICK $23.300 UNKNOWN NORTH AMERICAN & MARKET NEUTRAL INVESTING Yes

Owned 2 businesses. Nitrogen fertilizer and a refinery. Spun off the nitrogen fertilizer in April, which will declare a dividend of $1.92 a share. An 8% yield on the spin-off would be worth about $24 a share. CVR has a $1.3 billion position in the spin-off. CVR market cap is $2 billion and subtracting $1.3 billion gets you $0.7 billion for the refinery business. Current crack spreads generate $600 million in EBITDA this year with the replacement value of $2.8 billion.

Andrew McCreath
Senior Portfolio Manager, Sentry Select Capital

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