Paulson isn't rolling the dice with Caesars Entertainment ( CZR). He likes this firm enough to warrant buying 12.4 million shares in the most recent quarter, a $182 million position at current price levels. That gives Paulson a 9.88% stake in the casino stock formerly known as Harrah's Entertainment, which had its IPO back in February. The gaming industry has been under pressure since the start of 2012, compounding the challenges for Caesars; margins have remained under water with the exception of a blip of profitability in fiscal 2009. While that track record of financial performance doesn't instill the greatest confidence in the investing public, there's an endgame in CZR's strategy right now. In May, the agreed to sell off its Harrah's St. Louis property for $610 million in cash; a full half of CZR's current market cap in exchange for a property that generates less than 10% of revenue. >>5 Stocks Under $10 Set to Soar The move has important implications for CZR shareholders: first, it suggests that shares of this small-cap stock are trading at a big discount to the market value of its assets, and second, it brings up the possibility that Caesars is unloading less desirable (and profitable) geographic regions from its balance sheet. That opens the doors to profitability in the near future. As more analyst eyes get on this small-cap name, that bargain price tag could grow considerably. I'd recommend waiting for the sustained downtrend is CZR's price to get broken before buying.