If you agree that the US economy muddles along and that Europe does not implode, Tilson tells us the conclusion is, “stocks are cheap.” And in this kind of environment, Tilson looks for value.
His strategy is buying value stocks that are out of favor. "Citigroup and AIG are trading at half of tangible book – Goldman is trading at a 25% discount to tangible book. We think these stocks are way too cheap.”
And Tilson also tells us he’s adding to his positions in Netflix and JCPenney. "The value is still there," he insists. "When the story is the same and the price is lower – buy more.”
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NEW SLIDESHOW: Learning from the Legends:Simple Strategies Behind Supersized Successes
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> Market Gave us a Gift on Netflix: Whitney Tilson
> Whitney Tilson Adds to JCP around $27
Posted by CNBC's Lee Brodie
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Trader disclosure: On June 1, 2012, 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 is long FB CALL SPREADS; Jon Najarian is long DAL CALL SPREADS; Jon Najarian is long JPM CALL SPREADS; Jon Najarian is long GS CALL SPREADS; Jon Najarian is long VIX CALL SPREADS; Jon Najarian is long CIGX; Jon Najarian is long DDMG; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long GLD; Pete Najarian is long AAPL; Pete Najarian is long AAPL CALLS; Pete Najarian is long C; Pete Najarian is long GDX CALLS; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long PEP; Pete Najarian is long FB; Pete Najarian is long JOY; Josh Brown is long COP; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA
For William Irving
William Irving is long FGOVX
For Paul Sankey
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For Whitney Tilson
Whitney Tilson is long NFLX
Whitney Tilson is long JCP
Whitney Tilson is long AIG
Whitney Tilson is long JPM
Whitney Tilson is long C
Whitney Tilson is long GS
Whitney Tilson is long WFC
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