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2 New 'Buys' from Money Manger Whitney Tilson

This week on Fast Money we’ve been looking at stocks that may still be a value even after this two-year bull run.

And in our quest to get you a step ahead, we tapped one of the best resources available – top value investor Whitney Tilson of T2 Partners.

Following are his 2 new buys.

JC Penney

In a live interview on CNBC’s Fast Money Tilson explains that his JCPenny trade is tethered to some Wall Street whale watching.

”Two of the smartest guys in real estate, Bill Ackman and Steve Roth bought 25% of JCPenney, and we took note,” Tilson says.

The retailer had already been on Tilson's radar. “It was a company we followed for a while," he explains. But when Ackman and Roth went in, Tilson decided to pull the trigger too. "We think there’s a lot they can do.”

He says there’s opportunity for margin expansion and JCPenney owns a lot of valuable real estate. Also, they have no net debt and if they’re clever they could take advantage of the low rates.

Although he’s not exactly sure what they will do to generate value, “I think there’s upside surprise,” he says “and in the meantime the business is doing well and it’s cheap.”

Seagate

Tilson explains this is a tricky trade and one that requires investors to remain nimble.

”It’s a declining business and could turn into a value trap,” he says. “But we think the demise of Seagate is overblown in the market. That’s why we own it.”

Tilson explains that in these kinds of circumstance he believes, “If you buy it cheaply enough and there’s enough capital allocation you can make money. Seagate is very cheap, producing a lot of cash, paying north of a 4% dividend and buying back a ton of stock.”

However, he reiterates “This is a bet that the business doesn’t decline as quickly as the Street thinks.”

Berkshire Hathaway

It's no secret that Tilson is bullish Berkshire. What is new, however, is that despite concerns about the actions of David Sokol, Tilson remains optimistic. In fact, a little more so.

"The key thing for us is that Warren Buffett didn’t know anything about Sokol’s involvement with Lubrizol,” Tilson says.

And he likes the acquisition of Lubrizol. "Our estimates of Berkshire has gone up a little bit because of it," Tilson says. "It's another great business that’s part of the Berkshire Hathaway family."


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Trader disclosure: On April 13, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Weiss owns (COP); Weiss owns (DVN); Weiss owns (HK); Weiss owns (HPQ); Weiss owns (MSFT); Weiss owns (AKAM); Weiss owns (TBT); Weiss owns (GDX); Weiss owns (UUP); Weiss owns (DRR); Weiss owns (HBAN); Weiss owns (KEY); Weiss owns (QCOM); Weiss owns (BTU); Weiss is short (IWM); Weiss is short (X); Weiss is short (AKS); Weiss owns (AAPL) calls; Seymour owns (AAPL); Seymour owns (BHP); Seymour owns (F); Seymour owns (INTC); Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (IJR); Finerman's Firm Is Short (MDY); Finerman's Firm Is Long S&P 500 Puts; Finerman's Firm Is Long Russell 2000 Puts; Finerman's Firm And Finerman Own (AAPL); Finerman's Firm And Finerman Own (BP); Finerman Owns (C); Finerman's Firm And Finerman Own (CVS); Finerman's Firm Owns (HPQ); Finerman's Firm Owns (JPM) Leap, (JPM); Finerman Owns (JPM); Finerman's Firm And Finerman Own (MSFT); Finerman's Firm Owns (TGT); Finerman Owns (USO); Finerman's Firm Owns (WMT); Terranova Owns (JPM); Terranova Owns (V); Terranova Owns (BX); Terranova Owns (GS); Terranova Owns (UPL); Terranova Owns (AKAM); Terranova Owns (XOM); Terranova Owns (BAX); Terranova Owns (TCK); Terranova Owns (HOC); Terranova Owns (VRTS)

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
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For Whitney Tilson
Funds Managed By Whitney Tilson Own (BRK.A)
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SOT 3/28/11 Tim Seymour Halliburton
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