for the win streak. >> it's a bit of a stretch, no matter what. >> down double digits here to date. >> that's why it will be the biggie tomorrow. see how it does with the markets. continued in record territory. stephanie and mike, thank you. time for "fast money" now. that does it for us. "fast money" start right now. live from the nasdaq market site overlooking new york city's times square, the traders, tim seymour, dived sieberg, karen main fer and dan nathan. think the rally has run out of steam in a top strategist says the rally has another 15% to go. why he's so bullish and could happen at any moment. donald trump expected to announce his vp candidate as he's surging in the polls. what that could mean for your money and hedge fund investor bill ackman slamming short seller andrew left who is here with a little something for bill. still, we start off with another record day for stocks. the dow and s&p seemingly on an unstoppable surge, even higher records.

today's move ahead had everything to do with fundamentals, yes, fundamentals. earnings beats, check, healthy ipo, check, good economic data, check. could it be that this rally has more to do with the fundamentals than the bears even want to admit? so we go to bear dan nathan. >> skeptic. i mean, listen, all those things, we had very low expe expectatio expectatioexpec expectati expectations. had really low expectations as it relates to earnings, and when you look at the ones that actually performed really well, important to remember jpmorgan is still down 10% from its 52-week highs. expectations not there in delta or csx so we are results better than very low expectations. >> it was a revenue beat, dan? didn't jpmorgan ultimately do more loan growth? >> right, and those revenue estimates have been coming down for a year. >> it is from its 52-week highs. 52-week highs, and it's still down on the year and we'll get nao citi and bank of america, down 20% from their 52-week

highs. >> i'm not being cute. >> explain why 52-week high, why being below is such a big deal? >> massive relative underperformance. >> who cares what it did yesterday. >> we started out the conversation by saying the s&p makes a new high up 9% since june 27th. un1.5% from the all-time highs made in may 2015. it's weird we're not running the hallelujah music today because we did that the other day. >> hallelujah we didn't drift into despair like most people were saying. >> i'm not certain it's time for a big party year, especially after a 90% rally given the fact that we heave had five s&p company report earnings below expectations. >> underper formers coming back to life. >> are they? >> whatever happened with the banks and what has happened the last seven days with the banks. >> talking about 5 it-week highs isished to what they are going to do tomorrow. underperformers that have a reason to catch up. i'm not buying banks here and i want to make it clear.

i'm not an uber bull. i think there are things that have relatively underperformed, as you say. that are in a place that actually could be outperforming. >> i would think that the hope is there's some sort of rotation. is the rotation from the other sectors. >> i agree with boast you guys. dan, i agree. sectors completely bashed down, airlines, banks. i mean, we saw these stocks get absolutely anoilated and talked about them on the show. a trading opportunity. in a trading market, folks, period. we're in a market where have you to pick stocks that you understand and trade them. do not invest here. valuations are getting ahead of themselves based on fundamentals. when i look at stocks and say to you earnings are being manufactured pretty much across the board. top line growth is almost nonexistent in a lot of industries that we're looking at, stocks that get beat up, cyclicals that are cheap you want to buy in a tape that gets dislocated. >> i want to take issue with the don't invest for the long term. >> at these levels i'm not putting long-term money to work. >> so is it cash. >> >> you can buy pullback.

it depends. love corporate bonds for a lot of different reasons. talked about that. i like them just because of the fact that -- for me, look, i -- i hear what you're saying but i say to you this. in general i believe, we're in a period of time where valuations have -- have gotten way too pressed, and i think that we're at the point right now where with the fundamentals haven't caught up. energy is pricing in $65 oil for the most part. you look at these airlines. why did the airlines sell off the way they did? >> because we're worried about how they ran their businesses. >> how they ran their businesses. but at the end of the day look where they are now. a trading vehicle. >> you don't know what valuations should be with rates at zero, and with rates at zero for an extended period of time with central banks continuing to put their foot on the gags, you don't. >> when you take a look at jpmorgan earnings, is it a read through to the banks but maybe things are better than what people are thinking, or is it just a read through to jpmorgan only? >> there's a multi-level read through. >> okay. >> one is to the u.s. economy, right, so that's important, and

if you look at revenue growth there, that was good, so, i mean, they have an excellent window into the u.s. economy so to it the extent that they are doing well, that's a very good data point for the economy at large. jpmorgan also themselves did well. then they had some issues that were not issues. had some positive things that were shared most likely by everyone else. the trading value from the last week of june is probably absolutely fantastic everywhere. very good for jpmorgan. you know, the credit daywalt and the oil and gas space was not bad, stabilized. yes. >> that's important. >> can we agree that jpmorgan is an outlier. they have a 3.5% dividend yield, a share buyback and obviously there is no sales growth. you guys are happy that they beat by a few million on 24 billion number. >> i like year over year sales growth. >> people are getting geeked up

because the ten-year yield is 1.51 or whatever. you know where it was on june 23rd before the brexit vote, 1.72. >> that's a positive sign. >> okay. >> and if you look at how bonds are actually reacting to, first of all, get an overreaction in brexit and everybody takes a deep breath and get to a place where the u.s. economy is not going into recession, a huge payroll number and fed on the sidelines that gives you a backdrop -- i would make an argument that tomorrow's retail sales, if you get a payroll-like number, in other words, a massive bombastic stronger than expected number, that will be a bigger rally tomorrow than what you had last friday. >> and if the china data is good, i totally hear you, tim, and i back you 99.9% of the time and the question on if, i'm not willing at these valuations to put my neck out on an. if i want to make sure that i've got a real clear picture of what's occurring, and i want to see the data before i jump in and buy stocks for the long term so what i'm do, i'm buying stocks on pullback and buying very cheap cyclical names.

>> and i'm with you. >> when they get beaten down, it's a buying opportunity to step in and buy them. banks are trading vehicles. you can't invest because it's a sentiment trade, just like biotech. very investable and i've called it wrong in the show. it's a sentiment trade. at some point in time it's too early. >> actually taken profits in resource sports, a little bit of freeport. some getting out of jail, not a glory trade. some i own at a significant higher level. i think it's a massive run. i would not be buying financials tomorrow. if anything, we've seen jpmorgan has been the leader of the pack the last two quarters. a great day for financials everywhere because everybody computes off the sector and they all set off after that. that's my read on today. >> one quick point about the euro stocks. it's obviously had a really nice comeback. it's not filled in the gap from brexit. i think it sets up the etf that tracks the euro stock 50. that sets up as a gooshort play. i was still bearish on european

equities for a whole host of reasons. i think you now have the comeback to the june 23rd level and i think you lay it out here. i think it's going to be a nasty summer once people get back to the reasons why the eurozone has no growth and why it's troubled. >> all right. you're the relatively most bullish on this deck, would i say. >> relatively, yes. >> what are you doing in this environment? >> so we talked about -- david talked about airlines and that's something new for us two days ago, you know. clearly not at the bottom. i was not in there post brexit but they do seem to set up and they are down still a lot for the year. if the u.s. economy is fine, they are primarily the ones that i have, u.s.-based, not entirely, but so i think that's a recent place to go. industrials, i think that's a decent place to look you or i have are it for a long time. coming up next week earnings there. i like the industrial space. >> sticking with stocks here on cnbc "squawk box," larry thanked the leader of black rock, the largest asset management firm in

the world, here these. >> here we are seeing investors worldwide pausing. we've seen quite a large sum of money being pulled out of equities over the last year and yet we're at record highs. this rally in my mind is not -- i don't think we have enough evidence to gestify these levels in the equity moment at this moment. >> our next guest correctly predicted the 2016 real and said 2017 will be even better. tony dwyer joins us now. great to have you with us. >> great to be here. >> what is layer missing? >> i think the fundamental improvement to what karen said about some. financial. the fundamental improvement i sympathy what people are missing. they always see the leading indicators in asia so everybody is worried about japan. everybody is worried about china. the leading indicators sequentially over the last nine months are ramping and money supply in china is ramping. it's not sloempingt even the eurozone with leading indicators are positive still.

you couple that are expectations that the u.s. is going to stay weak but all the data is way bert. ism services way bert and the pc consumption was way better. earnings are better than we thought they were going to be, jpmorgan being the first major one so i think the surprise here you is actually get top line growth. you get global growth. you get domestic growth. the margin depression, the peak margin argument came from weak commodities and the strong dollar. you've reversed some of that. what if you have a margin uptick? our focus has been since the february low, what could go right because there's such an easy focus on what could go wrong. >> but also you say that companies are taking advantage of low interest rates so the kicker to this is on the credit side. we're actually seeing improvements, right, in companies' balance sheets? >> it's real incredible what's happened i like to use a.k. steel who had an 8 3/4 senior bond that was traded the cds on a.k. steel was trading like it would default back in january and february.

trading three times what it was during the financial cries and just two months in mid-june they did an issuance of an $380 million deal that replaced that debt, that tendered for that debt so you got a lower interest expense and they extended mat tour the. i agree with some. folks on the panel that are negative. this is going to end badly. you cannot fix debt with debt. however, the fed is allowing them to extend it for another six years so i'm not saying that a.k. steel is not going to be in trouble. >> right. >> but they wonkt on that bond issue. >> in this margin in which it goes up 50%, what do we see in the markets? do we see a selloff in the defensive quote unquote safety sectors that people bid up, and i that i that's what larry was talking about also, the valuations of 125i7les, for instance and utilities and telecom. do we see that rotation into industrials, into technology, into cyclical areas? >> i don't think you really see a negative performance for the staples or for the defensive names. i think you see a relative outperformance for the other areas of the market.

you can't have negative consumer staples and utilities in telecom if it goes down. now, let's take my opinion out of it because, you know, everybody's got an opinion. historically when you have two 90% upside volume days in a row, you've never been negative three, six and 12 months later. your worst case six months later was 10% including the cycle. 10% and your median was 29% a year later. i don't -- i get it. it's hard to buy up 15 to 20% from the low but the fundamentals are improving and history stays should say that way. >> let me take opposes yews. let's just talk about the percolating banking crisis we still have in europe, the uncertainty post-brexit and seems like the world is pretty calk with that but that's going to come back and to a theater near you in 2016 and then we haven't mentioned anything about china, their currency, and the fact that they basically have debt to gdp about 250%. there's really big problems

lurking. >> oh, definitely. >> and back to david's point, how you commit new capital at 2165 in the s&p given that all the shots on the downside. >> 18 times, the interesting thing i find about valuation people saying the markets is overvalued are saying stay defensive, right. that's where the market is overvalued so when you actual think look at the valuation argument you're conflicted as a bear, not you personally but just in general. truth beitude is all of those issues have been with us for the last six years. every single one of them. >> in 2012 the yield curve as flat as it is now, the ten-year yield note broke for the first time in history and the european debt crisis was going craze and jim chenos was doing the see-tloug comments on tv about the real estate in china. >> for 18 months ago the s&p was 1.5% lower, three selloffs of 10% plus, all because of those reasons so you can't push them

out. sometime that -- >> i would say the three selloffs were a dislocation of corporate credit in the u.s. this is all about corporate credit in the u.s. and what i missed coming off the last august low, equity market ramped and corporate credit did not. yields stayed high. you've had an extraordinary move in corporate credit. back in mid-april the ten-week rate of change on the moody baa index, the lowest investment grade, that dropped to a historic degree. >> are you worried there's a distortion because yields are low around the world, that this is going to be a spillover? >> melissa, do you know anybody who has refinanced their debt? i'm in the process of refinancing my debt. a.k. steel, refinanced their debt. >> buying a new house, going out and spending money versus refinancing are two different things. >> but they are. >> no. >> for the last six months, in fact what, this is doing is forestalling that day. the e.m. credit bubble is something people were guaranteeing in february and in fact these guys -- there's a

hunt for yield. e.m. has been rallying off the chart. >> chemical stocks today, deteriorating balance sheets and they are not going to be able to borrow money and actually buy back stock and return capital to shareholders. that's going to start to slow down and the street that is work. forward numbers are too high. there's an example are you have a dislocated sort of market, right? and they are cheap. >> in credit what i track is the cds, the european cds going back to the original somers point that credit default swap market, which is a measurement of systemic risk in the debt market, they are not widening out. they are staying low. >> right. >> so i think the improve there is a good sign. >> department store sales tumbling for a while but wall street has a new idea to save them. all the details next and everything is rallying today except for one group of stocks, biotech and things may have gotten even worse for them. we'll explain later on, and he's surging in the polls. the donald closing in on hillary clinton as he prepares to announce his vp. what that could mean for the rally when "fast money" returns.

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from nintendo becomes the biggest mobile game ever and the retailers could be the next big winners of the recent phenomenon. the app could drive traffic to the malls as people go hunting for pokemon in the real world. this is known as augmented reality. tim? >> obviously we know cowan puts out great research. i don't get that. i get -- i get the fact that there's a craze going on here with a group of buyers that to me i don't think are really the core buying group. i think at least the mall cares -- they care about 18 to 24 and care about mainlyials and the point is this going to save the mall? i'm not sure the mall is going out of business. we had the jc penney ex-ceo the other day saying companies like macy's and jc penney and nordstroms have their online game intact and that the death of these franchises is probably too soon. things that they have to do. >> i don't think that the note is saying it's going to save them from debt. it will drive traffic and

incrementally help their business which has been suffering in the brings and mortar level. karen, you're the retail expert on this desk. >> i wasn't counting on pokemon as part of my began thesis. >> it's not. >> balance sheets are great. they are very, very sheep. >> in the green room before the show karen was playing pokemon like nobody's business. >> the pikachu. >> my biggest business is retail. pokemon is not part of >> if you can create a reason for however old these players are to walk into macy's, isn't that half the battle to go into the story? >> i take this a step further. we spent a lot of time talking about all the money retailers have spent to compete with the likes of amazon. augmented reality is a thing and ultimately you'll see retailers work into some of the stuff and the buying experience and you don't buy them right now for that and there's no way to play

t.obviously a slow news day over at cowan. >> his point was really about mall traffic. i think that's a differentiated now. maybe something that's not 100%. that's fine. i can say that, but the reality is mall trucking is very different than spending patterns and going out and actually buying a product. >> i agree. >> will short-term mall traffic increase? maybe, maybe not. are people in the teen space essentially going to go out there and spend money. do they have the disposal income to turn a lot of names that they absolutely don't. my opinion, it won't have an effect. >> think how about the seasonals were for department stores because of the warm weather. that's something worth talking about. >> everybody's favorite biotech villain martin shkreli back in court today. i'm melissa lee. you're watching "fast money," first in business world wide. here's what else is coming up on "fast." >> fellow, americans, this man has never been closing to becoming your president.

>> what's the difference between a wet raccoon and donald trump's hair? a wet raccoon doesn't have $7 billion [ bleep ] in the bank. >> and we'll tell what you it could mean for your money as the republican convention heats up. plus, now it's personal. >> obviously he puts a trade on and goes on cnbc and says it's a short. >> billionaire hedge fund trader bill aikman throwing shade at andrew left and now left is coming back with a response of his own when "fast money" returns. nah. what else? what if we hire more sales reps? ♪ nah. what else? what if we digitize the whole supply chain? so people can customize their bike before they buy it. that worked better than expected. i'll dial it back. yeah, dial it back. just a little. live business, powered by sap. when you run live, you run simple.

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welcome back to "fast money." biotechs' perhaps most hated man was back in court today. martin shkreli could finally

face the securities fraud allegations that finally got him arrested back in december 2015. meg tirrell joins us now. >> today was a status hearing and the main goal of today was to set a trial date, and it's going to be june 26th, 2017 so that's kind of a long time from now, and the main reason for that is shkreli's attorney ben braffman saying they's got a lot of court cases between now and then and this is the first time he can do it. what we heard today in the courtroom, a long status hearings was the emergence of what the defense strategy might look like. essentially it looks like shkreli's attorney will make a move to separate his case from co-defendant evan greenel who was the outside kounl to shkreli's company and it -- >> so they can put the blame on

that guy? >> potentially. >> he was asked about this outside the courthouse and he's claiming innocence for his client. if there's urn sense there's point to separate. of course, this is not what made shkreli famous. shkreli became infamous you might say because he rised the price of an old drug by so much. that happened in september. if you look at the biotech index we often blame the beginning of the end of the biotech rally on hillary clinton in a tweet she put out in late september. the tweet she put out was in response to the actions that martin shkreli had taken to raise the price of the drug by 5,000% overnight and it's kind of interesting when you look at this entire sort of scope of where things have come in biotech a lot of people do blame martin for it and when you call him the most hated man in biotech, might be the most hated man by biotech as well because it's kind of led to this decline. what people are asking now after the worst first half of the year to biotech that we've seen since 2001 and this turned around

we've got second quarter earnings season starting for biopharma next week with johnsonism johnson and biogen on thursday and people are hoping for em & a take. j&j has a lot of cash and if biotech picks up that could help the sector a lot. >> articles today in "the wall street journal" that drug companies are actually making money in the first half of the year by raising prices on drugs. that's still alive and well. when i read that i thought i wonder if the candidates are reading this and think this is their time to get back on the bandwagon and beat that drum. >> yeah. the drug price increases definitely haven't stopped. interesting, biogen raised prices on their multiple sclerosis drugs earlier this year and analysts came out from cowan saying these were unexpected upside price increases on these drugs and biogen basically was one of the companies coming out saying we can't bake in such large price increases anymore. >> getting any pushback?

i mean, that's another area of shift in the political sphere and the sentiment. are they actually getting pushback? >> the pharmacy benefits and the ones with the most power here and especially in the air of multiple sclerosis. we do have multiple drugs often in the same place. they do start pairing those against one another and other areas like cancer drugs we haven't seen the same pricing pressure on these drugs so it's really one company is very different from others. i should say there was some light heartedness today. martin shkreli asking his attorney a pressing question when they came out from the status hearing, if you have that video, take a listen. >> can i play my pokemon? >> so i don't know if you caught that. he asked his attorney if he can play his pokemon. been playing around 42nd street and threatened to sue anyone who claimed pokemons near 42nd street. >> wow. i don't know what to say to that. meg, thank you. sieberg, you've been outspoken

on biotech in the past. what do you think now? >> what we said about the banks and airlines. it's a sentiment trading. i got it wrong when i defended the index essentially because it did collapse. it's a sentiment trade. say one thing, came out with a piece two weeks ago and we talked about sentiment in the sector and it was probably the most negative piece i've ever read about sentiment been biotech, large-cap biotech, plain vanillas, almost capitulating and we're at the point where i don't think sentiment can get much worse. i don't see any downside risk but i don't see them repairing any since. >> donald trump has never been closer to winning the 2016 election but could a win blindside the markets and battle of the heavyweights. activist investor bill aikman had some harsh words to andrew left who is here to respond. it's sure to be an explosive interview.

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welcome back to "fast money." yeah, you guessed it. stocks hit another record in today's session.

four out of the ten s&p sectors are sitting at all-time highs while the dow is in the midst of its longest winning streak in march. billionaire bill ackman using choice words to describe short seller andrew left who be here exclusively to fire back. bet on big blue, one stock traders see surging in the next month. how you can cash in. as we wait for donald trump to officially wait his new vp pick new polls are showing the race is tightening in battleground states. cnbc's eamon javers has the latest on this. >> reporter: we wait and wait and wait for that vice presidential pick. we have a day of "apprentice" style drama but the big rereal is set to happen at 11:00 tomorrow morning in new york city so we'll just have to wait until then. meanwhile, as you say, the significance of that vice presidential pick ramping up. as the polls shows the race tightening. hillary clinton and donald trump in the battleground states. take a look at many soft numbers from the latest nbc news/"wall

street journal"/marist poll and you'll see some of the states that i'm talking about starting with iowa. clinton 42 and trump 39. that's a relatively tight margin, and in ohio i spent most of the week in ohio. clinton 39 and trump 39. a dead heat in ohio. in pennsylvania clinton 45 and trump 36. donald trump is going to need to move that number a little bit in pennsylvania. that's the kind of state that he's going to need in november. and when you talk about that ohio dead heat tie, i share with you a little bit of an anecdote that i observed in ohio this week. i was talking to a young man who is a syrian immigrant. he himself came to the united states back in 2001 as an immigrant. he works at a liquor store now. he said he is voting for trump because he thinks there are too many illegal immigrants coming into the united states, so this electorate is a lot more complex than you might think and there's a lot of support for donald trump in ohio. >> media outlets, eamon, and

many pundits believe it's going to be indiana governor mike pence. what does that do to the ticket in terms of the winning the battleground states, if anything? >> i think what mike pence would do for the picket if that's the pick he's a guy who is a bridge to the republican evangelical, conservatives. the political base of the republican party. donald trump has a lot of political positions that are at odds with them. he's got a personal history, a business history not necessarily something that the evangelicals have seen before. mike pence would be sort of a calming pick for that group who might have been expressing reservations so it helps donald trump solidify the republican party. also not a guy who is going to outflamboyant donald trump. he's not going to steal the limelight and that might be a pick trump is comfortable with. but all of this maybe, gone an elaborate head fake by donald trump and we might get somebody else. he is a reality tv master and that would be right out of the reality tv playbook so we'll

have to wait and see. >> absolutely. eamon, thank you. eamon javers in dc. check out this chart courtesy of our good friends at the spoke showing the likelihood of a hillary clinton win versus the s&p 500 and over time there's a positive correlation between clinton's odds of winning and the direction of the s&p 500. interestingly. well, there have been short-term divergences notably in the past week. that's been the general trend, and over 70%. if trump continues to surge in the polls the question is can stocks continue to rally. saying this not in a political way but just based on the data we've seen. the markets seem to refer hillary. trump looks like he's going to win what, happens to this rally? >> uncertainty. the market can't stand uncertainty. the market is much more stern about the backdrop of what clinton has to offer and i look at donald trump and they look at him as a wild card. that's not the wrong thing. over time it's better to have trump in office for different reasons and we can talk with

that but in the short term the market takes a hit. >> i agree on the certain. probably banks would be better for banks, if you saw them dismantle some of the dodd/frank. >> and get back to all the stuff that was destabilizing, right, leading up to the financial crisis. it's completely -- this is not going to be a scenario like we get to brexit where everybody was on one side and it's a big surprise, okay, but i just can't see a scenario where donald trump surging in the polls throughout the summer and fall is bullish for stocks. >> i'll simply say a couple of things. it's the devil you know. >> yeah. and then something from brexit, as we hear these polls and we hear they are tied, if you -- if you're concerned -- >> discount every poll. >> guess what? >> i mean, especially because that's a hello, i'm voting for -- people might not be straight up about and talking about elections with donald when his policy is all over the map and there's a legislative

process in this country i sympathy throwing darts. >> could donald keep the fed on the sidelines if he is a destabilizing force? >> supposed to operate independently. >> messing with the fed would be very disruptive. >> still ahead, billionaire bill ackman accusing short seller andrew left of pumping and dumping shares of valeant and andrew left is not happy. he'll join us exclusively to respond. gold effs surging and is the rally an ultimate fake-out? we'll explain. much more "fast money" right after this.

valeant has a very did i first tied portfolio of assets and there's such that most shareholders don't even know exist that i would certainly define as non-core and, you know, i think joe will provide more clarity, but, you know, the company can i think very comfortably sell literally billions of dollars of assets without affecting any of the core franchises of the company. >> that was billionaire investor bill ackman earlier on "the halftime report" talk about some. things he sees in the drug company valeant but the interview took a turn when he accused short seller andrew left of pumping and dumping the

stock. take a listen. >> what i find interesting never tells you what he does with his position. puts a trade on, goes on cnbc and says it's a short and then he covers and he puts the position and buys some calls or goes long the stock and goes on tv and says it's a long which he did, i don't know, maybe a month or two ago and then i guess yesterday it's short again. i just feel like you guys are doing a very good job helping him make money on the portfolio. i'm not sure it's good, you know, for investors. >> we should note that left has been right about the pharmaceutical giant in the past. back in october he compared the company to enron and in may he said he was long for the trade and just yesterday he changed his position and called the company an obvious zero. he's executive director of citron research. i want to get right to it. what do you say to mr. ackman? >> i don't even know why this is a discussion. accused me the same thing when the stock what is 170, 150, 100, 50 and now 20. i was called for an interview. someone asked me about valeant. it's not me. look at the trading and the

stock. it will tell you. as for these non-core assets that they can sell off, obviously no one has done a good job on wall street because look at the stock. what is it telling you? it is telling you that it is obvious there are major problems and they are not fixable and this goes way beyond me and way beyond bill ackman so obviously he should have conveyed the message to sequoia when they sold all their assets and did they not understand the company and as for me pushing my book and say what i'm trading, with respect to bill ackman, almost wrote the book on that. >> let's be clear. are you saying you're upset not because he's wrong in saying that, but he can't add mitt that he is one himself? >> well, you put those words in my mouth. >> i'm asking you. i'm not putting any words in your mouth. >> how about this. there have been thousands of

articles written on bill doing that himself, okay. that is what it is, without me saying it because if i said it it seems like it comes from me. >> the pot is calling the kettle black? >> oh, i don't think so. we're talking about valeant right here. when it comes to valeant, was i correct on valeant? the answer is yes, that's it. did i anything it was a trade back when the stock was 27 or 28, i thought possibly. i made it very clear. i bought some stock and i owned some out-of-the-money puts. when i saw sequoia get out of their position and saw the sales by paerson and the recent event of the company, i said, oh, my god, this thing is really going to zero and it seems everyone has an inkling it's going to zero except bill ackman. >> so what is your specific position right now, andrew, in terms of how you're shorting the stock and why is it going to zero? is there no value whatsoever in some of the assets? value, for instance, in the determine logical value? >> of course there's value. you're talking over $30 billion in debt. >> right.

>> is there value to the equity? considering they overpay for most every acquisition they made, considering they won't be able to gain the system the way they have done it in the past. will there be any increased value to the debt, not in the long term, absolutely not. it's not going to happen overnight so if the stock tomorrow goes to 28. it's not a matter is left wrong on this? is will take a while to play out. >> hi, it's karen. do you have any idea what the $10 billion of assets that the street misses and what those might be and how they contribute to the company's cash flow now? >> of course. bill told you what it is. it's stuff. >> oh, okay. >> so you don't know. >> it's stuff. >> yeah, wonderful. >> yeah. >> but andrew, it's still. don't you -- again, don't you employ a similar strategy when you have a short? you're out there telling the market what you think and clearly you have a voice. good for you for having a voice that people listen, to but it's clear, you know, you push for congress to subpoena valeant. >> not only did i push, i

actually said when congress subpoenas valeant this is what they are going to find out and that's exactly what they found out and bill has never come out and said, you know what, that was wrong and he was right on there. >> i hear you being critical of a media strategy which i think you employ yourself. >> why wouldn't i? >> why wouldn't he? >> i'm very proud to say that the work that i've done along with other people who are short the stock, pay long with many. journalists who have written about it, i'm a small piece of this whole system. in the future we'll save our u.s. health care system billions and billions of dollars and make a more efficient system and of course we have to use the media for in a. >> that's a beautiful thing. >> andrew, last question here. the path to zero is what for the company? is it going to be defaulting on its debt? is it going to be a debt driven spiral to zero. >> eventually it will, eventually they will default on debt or be a creditor issue. many different levers of how it's going to play out and if you look at how they bought the

assets, the real value of the assets, the future value of these assets, how much longer can they go on without breaking the covenants, so, again, it's nothing that is going to happen q3 or q4 of this year but it will probably hoop within the next few years, yes. >> you sound like you really don't like bill ackman, is that the case? >> i actually like bill ackman a lot, i like him, respect him. bill makes big bets and swings a big stick and in some cases you're right and some cases you're wrong. it's very simple. you can't be right every time in this market. i don't understand why bill wouldn't say i was wrong and make your money for your investors elsewhere. he's a smart man. it's a company, not one of his children. >> good point. andrew, thanks for phoning in. appreciate it. >> have a great day, everyone. >> andrew left of citr ho n research. he said something else in the "halftime" interview with scott wapner and he said on his short to herbalife he would remain short to the ends of the earth. >> exactly.

it's reckless to say stuff and not really identify it. $31 billion in debt and a market cap of $7.16 billion. >> this is a news clip and the guy is being asked about the value. >> that's my point. hold on. >> spend five minutes talking about the balance sheet. >> the street doesn't understand about $10 billion in assets. >> you can say the street doesn't understand it. >> that's insane. the company should be making shuart street is aware of it. it's their fiduciary responsibility under this circumstance to their shareholders to make sure they know what the assets look like in this circumstance is. i look at it and say it's probably a little bit of, you know, gibberish, full. >> i would focus on that last bit from andrew left who seems to be an active trader and his point is i don't dig in on anything. the stock is not a child of mine, and i think you can use this example in stocks like apple that went from 134 a little more than a year ago down to $90 a couple months ago and

have you to let go of stuff. >> is it a trading sgloint that sounds like to me you own the market. you get to a place where, you know, you can't -- you can't fight it, right? >> but you can. i buy stocks and make bullish trades. i mean, that -- that's the point. >> how do you trade valeant? >> you don't trade it. i think you can probably do something in options. >> no, you can't. you can't. >> so the january -- >> you can do some spreads. >> okay. january 22.5 call with the stock at $23 is offered at $6. that's a quarter of the stock price. >> too expenseive. >> wait, wait, wait. don't look at its stock price. >> options action early. >> enterprise value with a $40 billion enterprise value with the debt and equity, okay, fine. i think if you want to buy the stock, you want to buy the debt of this thing because there's going to be people that push that equity value to nothing and you don't want to own calls on equity. >> that's the frayed. >> let it go. >> okay. >> that's the key, right, dan?

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welcome back to "fast money." breaking news out of france. seema mody is in the newsroom with the headlines. >> reporter: that's right. there are various reports that a truck has plowed into a crowd of people celebrating bastille day in nice, france. nice located in the south of france. it's the capital of the french riviera. there's also unconfirmed reports of injuries and possible deaths, but, of course, this is still a very fluid situation. it's unclear if this is related to terrorism or not. if this was an intentional act or not, but, of course, the situation we're watching very closely. bastille day is the french holiday. nice located in the south of france. a popular destination over the summer and as you can imagine plenty of people celebrating bastille day across france. >> seema moldy, thanks very much. the importance of bastille day, the equivalent of the french independence day so a possible

incident on this particular day could have significant meaning or more meaning than on any other random day out there and this is information that's just coming in. we don't have many details. we just know dozens of people have been injured in this event. what happens -- i mean, this is another thing, marcus, to worry about. >> look, it's -- it's horrific, and on some level this is a new phase of horrific, and if you think about the political problems in europe, this gets at the heart of why there's so much xenophobia and isolationism and the migrant issues and learned today there's multiple reports of also, you know, massive migrant saving brought on to the european continent so this only heightens a very, very difficult time for the european union and the world frankly and it's awful. >> yeah. >> sieberg? >> yeah, again, i echo that it's terrible, i mean, to even hear that this exists, but i would

say that, you know, as far as the market, your question about the markets and the impact. i don't know that we're going to see a big impact on the u.s. markets. we're unfortunately in a world where this is becoming much more normal and i think people are becoming, you know, more immune to this which is a very sad thing, but i don't see an impact to the markets necessarily on this news. >> right. so sad that it's -- we've been here before several times. it's so sad. >> but i guess it's not like today and tomorrow sort of thing and the issue is really leading up to that brexit vote. a lot of sentiment that people were worried about. that you would have a contageow effect from the populist movement and the nationalist movement you saw in the uk and who is next? it's france. it's germany. it's italy. >> the opposition party in france is very powerful. if there was an election today they would win and that's the

first thing mary le pen has indicated she would do. >> a truck has plowed into a crowd in nice, france on bastille day, the equivalent of independence day. we'll get more on the story when we come. more after this. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade. don't put off checking out your medicare options until 65. now is a good time to get the ball rolling. medicare only covers about eighty percent of part b medical costs.

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and after hearing that how would you like to hear about a totally domestic retail play? "mad money" is next. >> it is time for the final trade. so, tim, kick it off for us. >> i mentioned i traded in freeport. didn't get out totally but a decent place to take some profits on something that's gone sky high and copper hasn't recovered as much. >> david? >> i believe in a lot of dislocations. what i want to take advantage of so i'm looking at emerging markets which are an opportunity right now. completely dislocated and i think you should step in and take a look, eems. >> come on. >> karen? >> you know, it's an oldie but a goody for me which is google which i'll never call alphabet. i can't get really comfortable for that, and in this rally it's bounced back nicely, but i still think the valuation here is very attractive and you've got a lot of potential calls. >> dan? >> yeah. so fez, mentioned, that the etf

that tracks the euro stocks 50. that looks like a good short entry for the traders. >> all right. i'm melissa lee. thanks so much for watching. see you back here at 5:00 for more "fast money." meantime, don't my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. some people want to make friends, i just want to make you money. call me at 1-800-743-cnbc or tweet me@jimcramer. are these prices justified? are they sustainable? after today's run, s&p