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Should You Follow Einhorn Into Yahoo!?

The Street again turned attention to beleaguered Yahoo!, sending shares to a 52-week high after top hedge fund manager David Einhorn revealed a bullish position.

Largely, Einhorn is constructive on some of Yahoo!’s holdings overseas.

“We would not be surprised if Yahoo’s 40% stake in Alibaba Group alone was ultimately worth Yahoo’s entire current market value,” he notes. Yahoo’s market cap is about $23 billion.

In addition to Yahoo!, Einhorn bought into Best Buy on the thesis that "the mobile division and international growth could propel this stock higher," says host Melissa Lee.

Should you follow Einhorn into either of these names?

Trader Karen Finerman concedes that she thinks David Einhorn is "one of the smartest investors out there.” However, she cautions investors not to get into either stock simply because of Einhorn.

Although he’s cautious of Best Buy, trader Joe Terranova finds Einhorn’s Yahoo! stake “interesting.”

According to Citi's Mark Mahaney, "if there is a bull thesis on Yahoo! it's out of the Asia assets. They've got a very attractive Asian internet investment portfolio," he says. But Mahaney also adds, "Yahoo's core business and the management's spotty track record keep us on the sidelines."




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Trader disclosure: On May 2, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Jon Najarian owns (SLV); Seymour owns (AA); Seymour owns (AAPL); Seymour owns (F); Seymour owns (POT); Seymour owns (SLW); Seymour owns (EPU); Finerman and Finerman's firm own (AAPL); Finerman and Finerman's firm own (BP); Finerman owns (C); Finreman and Finerman's firm own (CVS); Finerman's firm owns (IBM); Finerman's firm owns (JPM) and is long (JPM) leaps; Finerman owns (JPM); Finerman and Finerman's firm own (MSFT); Finerman's firm owns (TGT); Finerman owns (UNG); Finerman owns (USO); Finerman's firm is short (IWM), (SPY), (MDY); Finerman's firm owns s&p puts; Finerman's firm owns Russel 200 puts; Terranova owns (XOM); Terranova owns (BAX); Terranova owns (SLV); Terranova owns (TCK); Terranova owns (APA); Terranova owns (HOC); Terranova owns (OXY); Terranova owns (UPL); Terranova owns (FCX); Terranova owns (BX); Terranova owns (V); Terranova owns (VRTS); Terranova owns (JPM); Terranova is short (NFLX); Terranova is short S&P Futures; Terranova is Chief Market Strategist of Virtus Investment Partners, LTD; Adami owns (AGU); Adami owns (C); Adami owns ( GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (STU)

For Joe Terranova
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of DOMINO'S PIZZA UK & URL PLC
Virtus Investment Partners Owns More Than 1% Of (DRYS)

For Anthony Scaramucci
Skybridge is a Fund of Funds Manager
Funds held May or May not Own the Recommended Securities

For Mike Khouw
Cantor Fitzgerald is a market maker in (AA)

For Mark Mahaney
**No Disclosures

For David Riedal
**No Disclosures

For Tim Seymour on MOS SOT 3/29/11
**No disclosures

For Alex Hamilton
*No Disclosures

For Mike Khouw
Cantor Fitzgerald is a market maker in (AA)

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