good year. >> and joe >> guide wire software regaining momentum gwre see you in the chamber >> only one of us coming out take a look at zoom before we go there it is. the exchange ostarts now sounds like the wood shed. thanks very much welcome to "the exchange." here is what is ahead for you. from an s.e.c. investigation to a stock at an all time high last year has been a wild ride for tesla. we'll look at how elon musk has staged this dramatic turnaround. plus it was a year of big gains for the home birld eme bu. can the group keep hammering home gains and goldman sachs thinks its stock is undervalued and they have a new strategy for wall street but we begin with today's markets and seema mody

>> three hours left in trade the dow was down about 140 points at the lows so we are off the lows currently down 107, lower by 7 points. take a look at the nasdaq, actually higher byaround 12 points what is leading us lower, industrials, financials and energy giving up some of the gains that we've seen over the past two trading days. chevron at session lows. their ceo telling cnbc that he is not anticipating higher oil prices because of the tensions with iran. and bank of america downgrading the stock to underperform from neutral. and evone standout, square gettg upgraded, analysts say that the underperformance in 2019 and its conservative guide for 2020 sets up the company to defy expectations this year you can see it is up 4% today, still down about 4% over the past three months. >> thank you very much and we start with a stock

comeback that has taken wall street and perhaps many of you by surprise. and it is a company called tesla. the stock has been on a very wild rid wild ride. last january the company announced that it would layoff 7% of its staff. in february the s.e.c. went after elon musk for a second time this time for contempt of court. two months later, the company settled and agreed to new terms for musk's tweeting guidelines and the stock however continued to decline falling below $200 a share. as the stock was starting to recover, the company reported results that missed estimates. and it tanked nearly 10% october on the other hand was a month to remember for the bulls. a surprise profit sent the shares soaring as you see right there. last month, it delivered the first tesla made in its chinese factory. and today the stock hits an all-time high. for more on the transformation,

i'm joined by tim higgins from the "wall street journal" and also our own phil lebeau so tim, what has musk and company done right >> two things. elon has stayed off twitter. that was a problem that he had about a year ago and second is execution. he promised to deliver 360,000 to 400,000 vehicles and he hit his guidance low end, but neff the less he did. and third thing, he opened that china factory in a quick way >> and phil, their big bet i hear over and over again not big bet, but china is really, really important to this company's future and its success. >> it is and i think that they will do well in china. having spent time there for a number of the shanghai and beijing auto shows and having gone to talk with tesla owners in china as they are rnlg chaing their victories or tesla gallery, they have brand baappel

in china and that is huge over there. the reason why buick sales are so strong. the chinese revered the buick brand. and they still sell a lot of buicks over there. i think that tesla will do well when it comes to electric vehicles in china. remember, it is the world's largest auto market and the world's largest electric vehicle market and they are getting into that market at the right time. >> below 200 to above 400 in the swing of just a year mr. musk says that among the most important products for his company is getting the suv right. do you agree with that >> absolutely. that is where the market is especially in the u.s. and in china, customers have moved away from sedan as. it is a sedan-heavy company. so to get into the compact suv market will be huge for tesla. >> and let's talk about the moment that many people remember from the past year where they were introducing i believe it was the l.a. auto show, you can

correct me, when they threw a rock at the window of the tesla truck and supposedly shattered proof glass. it wasn't. was this an epic fail or an epic success because it humanized tesla and brought its name a greater notoriety? >> i think that it was both. and i think that it can be both. they didn't plan on those windows to shatter when they threw the balls at them twice. and afterwards, other companies might have scrambled and said that is terrible, we feel awful about this he kind of laughed on stage and he said, well, okay, it is what it is. and while there were critics who said this is an example where you can't go off the cuff # at event, this is what people like about tesla, which is why it really has gone -- it has become something that you don't hear people talk about and say, oh,

i'd never go near the cyber truck, the windows broke i haven't heard it once. people say it is kind of funny and that is about it >> either you like the truck or you don't. and an awful lot of people do over the long term say that the electric is the way that it will go tim, let me turn to china one more time and have you explain to me how the trade tensions between the united states and china have affected tesla if at all vis-a-vis other automakers and how it might affect tesla as we look forward. >> well, if you talk to china hands who watch the market closely, they would say that tesla is the one big benefactor for this trade war because china has shown a willingness to allow tesla to go into the country in a way that it hasn't allowed any other foreign automaker. tesla is the first foreign automaker to own its factory totally 100%, which means that they don't have a local jv to

share profit with. and you've seen the government there roll out the red carpet for them >> and he was dancing today, mr. musk was, reminiscent of performances not of 1250steve js who was more restrained, but certainly steve ballmer. but there he is, he is in a good mood in shanghai, the factory there opening and the company moving forward u.s. brands other than tesla in chinasales were down, right? >> the whole market was down gm reported their china sales today, they were down substantially. ford has been struggling fiat chrysler's presence is limited relative to the other two u.s. automakers in china but really the entire market was down and this is a market that has had i think 14 or 15 straight

months of declining auto sales so you are seeing a bit of a console didation taking place ad you will see the smaller brands shake out over the next couple years. >> let me squeeze in two real quick questions about the electric vehicle market. i'm going to assume for purposes of argument that tesla is number one. who is thuis number two right n who will be number two in ten years? >> well, globally i'd say number two in ten years is likely going to be volkswagen general motors will say that they will be making a big effort in that area that would be my guess for ten years from now and in terms of who is thumb two right now, i would say that -- i'm guessing maybe volkswagen, maybe bmw. and you have to look at how you measure it there is pure evs and then there are partial e.

a evs and that is where you get the data >> and tesla is number one right now and the strength is that they are a luxury brand. they are beyond electric >> who will be number two in ten years if they are the luxury brand? >> volkswagen is being aggressive gm is being aggressive those are the two to watch i think. >> tim, phil, thank you very much markets don't seem to be fazed by much these days despite the geopolitical turmoil stocks are essentially flat. but maybe it won't be overseas unrest that shakes confidence. maybe it is a case of overbought condition conditions 61% of s&p stocks are above their 100 day relative moving average. and the stocks are indeed overbought so let's discussion it with maryann montane and rich wise.

rich, let me start with you you. last year if i'm not mistaken, we didn't though what the fourth quarter heralds, but corporate profits were roughly flat. they didn't grow all that much and yet the s&p was up 32% that tells me that people were willing to pay more for each dollar of earnings can that condition sustain >> no, it can't. last year was all about pe expansi expansion. fed monetary policy switched roots. and went on hold with interest rates. and that allowed the pe to expand but this year, it is going to be much more about the denominator, the earnings growth rate and you know, at best we're looking at single digit growth rates. and that is not enough to get this market moving further arguably the market got a little bit ahead of itself last year, up 30% for the s&p give or take. on basically flat earnings

you will need at least 10% to 15% earnings growth this year to get the market moving and we just don't see it. >> maryann, do you see the earnings being there sufficiently to power the market higher measurably from where it is right now >> well, i do agree with rich in terms of the valuations, but we're believers that the earnings growth will be closer to 10% this year and so we see the market about 10% higher in 2020 >> and are there any particular sectors that you would favor or move away from given the macro outlook that you have? >> what we favor is the dividend payors and the dividends growers. and some stocks that are now value end of things. and that includes the energy sector so to play it on an overall basis, we would use the xle, which is the spdr etf and we think just simply because the

companies have reduced the costs, they have reduced their xa capital expenditures, they have strong cash flow, they can grow to something great he eer than yield now. and probably participate as the price of oil goes up so from $60 we think it could probably go to $70 but they have lowered their costs so much that the earnings can grow very nicely >> so rich, i'm assuming that given your outlook which feels a little cautious, that you might disagree with maryann who says dividend growers are a good place to be. maybe some of the value stocks but maybe you also like out of u.s. stocks. tell me what you're buying >> we remaining overweighted in the u.s. for a number of reasons. we're again the cleanest shirt in the dirty pile.

but you with interest rates on hold, we still maintain an overweight in growth stocks vis-a-vis value stocks to your question they are longer duration assets, lower dividends. and so with the fed on hold for the foreseeable future, they represent the better value with that said, for those in retirement or near retirement, you may want more down side protection equity income funds are very favorable. if the down side risk outweighs the positive, we're looking there. internationally, economic growth prospects are very limited we're talking 1% to 2% at most in economic growth the u.s. has got it beat >> have to leave it there. rich, mayrymaryann, thank you v much coming up, the home sector soared in 2019 can these companies continue to build gains this year? we'll ask the top analysts on the street plus goldman think its stock is

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home builders were hot way back in 2019

the home construction etf jumped nearly 48% last year, outperforming the broader s&p zc so do they have the foundation to keep the momentum going with us now, diana olick and steven kim diana, let me begin with you how do you explain the blockbuster performance of the brick and block guys >> it is just the optimism out there. builder sentiment hit a 20 year high last month and that is because there is so much demand. you have the millennials getting into their home buying years and you have this tight supply much existing homes for sale which will benefit the builders. >> steven, one thing interesting in the note i received reflecting your thoughts is that home builders you say have finally retooled to suftsly produce smaller homes at affordable prices tapping into a

deep pool of pent up millennial renters and downsizing empty nesters. and that is a real change. and what companies does it favor? >> you're right. it is a significant change and i would say that this is something that you don't typically see later in a cycle is a shift to a more affordable product. typically later in a cycle is when you would see birlsd move to a more luxury oriented product. but the affordable product is where we see the shortage right now and it has to do with a lot of factors we've seen a tremendous number of units being converted from ownership into rentals earlier in the cycle and that we think pulled out as many as 4 million to 5 million homes out of the market for sale and into the rental market so there is a real shortage of homes that need to be built so people can buy them. and that is finally starting to happen the builders have as i said in the note retooled.

what that means is they have found out that they can increase the standardizatie it and the result is that they can at a pretty t pretty decent margin sell a smaller home and so the millennials are looking to buy that. >> and diana, is that what you are sensing in the market? >> i'm wondering because i'm listening to stephen and i know that he is a top guy on the analyst side but on the street, i hear there is just not enough of that new supply on the lower end. and we saw median home prices in november up 7% and when you look at the shift of what is selling, it is really in that 5 to 750 zone, not the $200,000 to $400,000 range and i know that there are big companies like d.r. horton that

have the express home brands and some bigger companies say that they are pivoting, but they also complain that they can't do it fast enough because of the high costs. >> so stephen address diana and then tell me if you hold to your thesis that the lower home price builders will thrive who are the winnerers? >> we have a shortage situation, she is right and that is very good if you are a home builder i don't by any stretch mean to imply that the builders have saturated the demand, maybe even ov oversaturated. clearly as diane is pointing out that is not the case but there is still a lot more production that still needs to be made in order to satisfy the pent up demand so i think this is a very healthy environment for the builders that have retooled. and i would say the names that come most readily to my mind are

d.r. horton which we upgraded yesterday, they are the largest builder in the country, they also happen to be very focused on the entry level and are probably one of the most efficient builders out there you can also purchase nvr, kb home and lenar as good ways to target the lower end in all rig . >> all right have to leave is t there. coming up, from porkless pork to wingless wings, the fake meat mania continues we'll tell you whether it is a good strategy. plus goldman sachs is starting to look more like its peers. what the bank just did and what it says about where the industry is headed now. and this biotech stock gained 150% last year, developing a new way to street some cancers the ceo will join us live to talk about it when the exchange returns. is the fund built to sell or built to last? etfs are only part of a portfolio.

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i'm part of a community of problem solvers. we make ideas grow. from an everyday solution... to one that can take on a bigger challenge. we are solving problems that improve lives. welcome back i'm phil lebeau with breaking news on boeing it has been trading lower. the company is going to be recommending to the federal aviation administration that boeing pilots, all pilots who fly the 737 max, that they krund go sim uhe raulator training asf any approved fix for the max this is a move that boeing has resisted and not wanted to make, but the company says that it is planning to recommend that to

the faa when it makes final rules for the 737 max. the faa out with a statement saying it is following a thorough process, not a set time line, to ensure that any design modifications to the 737 max are integrated with appropriate training and procedures. the significance of this, tyler, that this is going to be much costlier for airlines and you know they won't bear the cost. it will go back to boeing. and that is why as they work out these settlements, we don't know what the settlements will be for 2020, but clearly additional simulator training will be worked into those settlements in the future >> and it will run into the billions of dollars for boeing, isn't it, when all is said and done >> yeah, in terms of what they have to pay the airlines and that is the impact for investors that they will be focused on for airlines, this is time consuming and it will be costly. now, again, boeing will bear those costs, but at the same

time, if you are a 737 pilot, now you're saying okay, now i have to get into simulator training at some point >> phil lebeau, thank you very much let's go to sue herera >> hello, everyone here is what is happening. a new study was unable to deputy link the use of talcum powder with increased risk for ovarian can cancer four studies involved more than 250,000 women. the study could impact thousands of legal claims against johnson & johnson over hit talc products france's government and its unions appear far apart after the talks resumed over pension reforms. the government was hoping to soften opposition. venezuelan opposition leader

juan guaido led lawmakers in singing the national anthem. he was initially blocked from entering and marijuana sales are on strong in illinois, that several dispensary shops are temporarily closing due to a supply shortage illinois legalized the sale of recreational marijuana as of january 1. people waited in line for hours spending nearly $11 million in the first five days of this new year you are up-to-date that is the news update. back to you. >> thank you very much and vegetarians will have another reason to cheer burger king uber is gearing up for liftoff with a major automaker and spacex tries to appease star gazers and finnish workers could soon ats dawowee y rkek th iall coming up.

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let's catch up on a few stories that should be on your radar. it is time for rapid fire. and here with their cams is kate rogers, morgan brennan and seema mody impossible foods has announced

plans to announce meatless pork and sausage. just sounds funny. it will debut across 100 burker king locations this follows the success of the impossible whopper which boosted third quarter sales to the highest level in four years. shares of restaurant brands are up about 1%. and my sense is this can help occurringer ki burger king. because they are not number one this breakfast >> and so it is a great move for bugger kin burger king. and so far the impossible sausage is coming later this month, a little over 100 restaurants across the country it is a good move for burger king because breakfast is more and more important wendy's is doing a nationwide rollout. and dunkin donuts and tim horton's both already have

beyond sausage sandwiches. whether or not consumers stick with the alternative meat products remains to be soon, but good to have the option. mcdonald's was hurt on earnings because they didn't haven an a option so interesting to see what happens. >> and what is the technology and the here in. >> it is agri tech this is a hot area for invest s investors. >> you just made a new word. >> oh, no, this is the vc word and i think the pork piece is fascinating. this is a company that is expanding entinternationally an they say is this a big potential he product to china. we'veseen a huge spike this inflation because of pork prices because of everything that has

happened with the hog. so i think that it is even more than that. and the other thing that is pretty fascinating, the impossible ceo was on earlier in the day, doesn't seem to have plans to go public yet >> so do we like these meatsl ss burgers? >> at this point i'd say no, but i'm willing to three it. >> i've had it once and i'm kind of in the no category. >> my dad is abu burger king franchisee, so i'm going thumbs up and he has soon more foot traffic. >> and i'll remain neutral i think that they taste good i do enjoy traditional meat. so i would more likely stick with that. but the taste is there >> all right let's move to hyundai and uber teaming up with flying taxis.

the person allege aal air vehice expected to travel between 1,000 and 2,000 feet uber elevate is expected to begin demo flights this year while uber says it plans to officially launch the service in 2023 would you get on one of these things >> 100%. but you are also asking a space reporter this is really fascinating 2023 a question now, what becomes more mainstream first, air taxis or autonomous vehicles i think that is a legit question and also they have a lot of partnerships hyundai but also boeing, textron, it will be an interesting business model we'll see how it shakes out. >> they sound great. i loved how our colleague tried to push the head of aviation on costs and how much is this financially going to impact uber's outlook because from the street's point of view, the concern is has it spread itself too thin with international food delivery versus lyft which is more of a

stream lined business he focused primarily on ride hailing. so i think that is the big concern, this is a great opportunity and innovative to say the least, but at the same time, how much does it cost. >> and another space oriented topic here, space xchlpacex laur than 60 sa 0 satellites into sp recently with plans to launch tens of thousands more but astronomers say that could have a potentially devastating side effect and could obscure crews of the stars they had a launch last night >> and it was a successful launch spacex slts woris the world's lt commercial operator of satellites internet service to the globe, potential new big revenue extreme. and there is only about 2,000

satellites in total around the globe. so this is why you have astronomers getting concerned about photo bombing and -- >> too reflective? >> yes one of the satellites that was actually on this mission last night has a coding, an experimental coding, to try to get it less reflective >> you have to get up to 400 in orbit to provide minimal coverage or 600 or 800 to provide moderate coverage. so there is a lot of work to be done in order to create this con tell lags constellation of these satellites >> and who is very jealous china. they have got two different startups trying to do the same exact thing. so you have the space race and we can't really understand or assess the real estate available in space, but does it become too crowded at some point. >> and moving to our perhaps

most interesting question, finland recently swore in the youngest prime minister and she has big plans, she has proposed shifting the doughcountry to a day workweek of six hour days saying that they deserve more time with hobbies and loved ones so far no traction for her plan just yet remember microsoft japan recently found a trial four day workweek boosted productivity or so said the people there by 40%. >> we all laughed at that experiment because if cnbc said we'll give you a four day workweek, wouldn't we really work hard and boost our productive to show that it really does work my question is are the workers being paid less? seems great in theory. people would be happier, but what does it looks like the employers. >> i can see som

that it would work ours it would be difficult because the business week is five days. so it would be a challenge >> i can't help but think that the potential is more diversity in the workplace if you create more flexibility maybe at a time where something like esg investing is gaining traction, maybe you create an opportunity for employees towards more gender parity and more diversity in general. >> and it is working in sweden at this point. i would just point out that in a tweet the finnish government did walk back the expectations that the new prime minister is expecting to roll out this four day week so we'll have to see if the policy goes through. but she is a leader to watch the world's young aest head of state at the age of 34 so a young cabinet >> not surprising that

millennial can suggested this. >> earlier in my career i worked for a company that did go to four days in the summer, but it was four 10-hour days. and it was a grind but thanks very much, guys oil prices falling today but climbing nearly 3% since the killing of iran's major general. up next, an energy exec weighs in on the ongoing tensions

oil prices falling despite the tensions with iran and crude has climbed only 2.5% since the killing of that country's most fearsome general. for more on this and why the industry appears to be shrugging off geopolitics at least for now, let's head to the energy conference where brian sullivan is being joined by one of the big players in energy. >> thank you very much

yeah, this next guest, andy hendricks, i think is the most interesting guest at the conference with all due respect to every other guest for one reason you guys make the big drilling rigs that are the beginning of the cycle. you really know what is going to happen because if i wanted to drill a rig, i got to lease one of your big rigs that drills the hole and moves over to the next one. how are you see you demand >> throughout 2019, as you stated, we are a proxy for what happens in drilling because of the rigs that we operate and we do post it on our website. but throughout 2019, with the price of oil coming down, we've seen the rig count come down but as we said in the last earnings call, we expect to put up a handful of rigs in early q1 and investors who have gone to our website, they have seen that the rig count has moved up >> and so tyler mathisen had a

great question which is why isn't oil higher you had opec tightening a month ago. you have the killing or assassination of soleimani and only up 2.5% from friday's opening. >> yeah, if you look at the risk premium, there is probably only a dollar left in the risk premium. it was trading at about $61 before what happened in the last few days and it is really a testament to production and efficiencies in u.s. and how much oil we're producing. >> a testament to oversupply >> you've seen oil move up i think most of the budgets of our customers, they were looking at $55 oil throughout 2019 we've been trading at $61. that is a healthy move from our standpoint >> do you think prices will stay above $60? >> i think that they will. if you look at the fundamentals especially with the rig count coming down so much in 2019, it

is eventually going to have an affect on production not right away you hear punk pundits talk on tv, but oil price haven't moved. we'll drill a number of wells on a pad. and then we'll come in with a fracking operation and do high drawl are li hydraulic fracking so there is a six month lag. >> and so you want prices to go up because then your customers have more money to spend with you, but at the same time, if prices go up, then there will be more drilling activity which might send prices back down. >> it could. we want a healthy oil price. >> which is what >> i think anything above $55 is healthy. we're operating 125 drilling rigs today we were operating more early in 2019, but oil prices were higher so we'll see what happens. and it is not just the emps the typical investor sees on their

screen there are a number of other oil companies out there too and it is actually the number of operators that are drilling with one rig can expand when oil prices move up >> maybe the hottest play in oil right now is new mexico. do you have rigs in new mexico >> we do >> a lot of drilling in new mexico is on federal hands and there are some political candidates that would like to ban fracking or drilling or anything on federal lands. >> you know, an interesting report when that came out, it was issued by jpmorgan early in september. and this isnot an energy economist, this was a generalist and it was recognition that 40% of the energy that we use in the united states today comes from wells that are hydraulically fracked. and this has been around a lodge time and provlodg -- a long time and proven to be a safe operation but if you take out 40%, that will create other issues with regards to the economy so there needs to be careful consideration before something like that comes into play.

>> all right andy, i've been on your rigs and i might have been one of those pundits. or i'll blame it on tyler who i called a smart guy because you are. >> thanks so much, and thank you to our guest as well joining "the exchange" tomorrow will be the energy secretary, don't want to miss that, that is at 1:00 p.m. tomorrow. and goldman sachs reorganizing its business to look more like a retail bank in an effort to win over investors. we'll tell you what it is doing. (upbeat music)

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goldman sachs announcing that it is reorganizing its businesses moving away from the sort of opaque labels it used until today. it is the latest move by ceo david solomon to transition goldman from a trading house into a more consumer facing bank with digital aspirations joining us now, banking reporter hugh song. good to see you. used to be goldman was just different.

it was a this morning white shoe investment bank. but it was different than its competitors. now it is more like them >> used to be different was good but five years of a stock underperformance versus the likes of the consumer facing products the apple credit card is one thing. there's another business calls marcus an interest bearing savings account. i guess they're bundling these products together? >> it's finally time i guess they reached prime time, scale enough, where they want to put them together and call it consumer wealth management division this new business that they're taking out you know, the flip side it's a tiny business still and so you actually now have a little more transparency into how tiny it is and how high the costs are as they're boot strapping these businesses and investing tons of money into these businesses.

i think what you'll see over the next coming years, david solomon lays the ground work for the recovery in the share price is that you're going to see massive growth in these consumer businesses which will give investors a story at least to hone in on where as a lot of the other pizzas are mature and not growing. >> so i don't want to get goldman angry with me by saying they're not different anymore. they are still different this consumer part of their business is still small. >> they're relatively lopsided when you look at the rest of the street >> but is there a day coming where i'm going to see on my corner, either a goldman sachs consumer bank with goldman sachs asset management in it or something called marcus, a brand they might cultivate >> i've asked them about whether or not they're going to be bricks and mortar. so far, it's only dinl tall. where you can scale up without a lot of the costs a lot of the other guys have. never say never in this

business if something were to make itself available, who knows but for now, no bricks and mortar >> r for more on goldman's tr s transformati transformation, you can read the article on cnbc.com. this bio tech has climbed and we'rgotoe ing talk to the chairman about those gains and what's on deck for 2020. that's next. jooi i can. the two words whispered at the start of every race. every new job. and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry.

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. bio tech was on fire in 201 and one of the leaders was nova cure the company outperformed the market because of positive results for its innovative cancer therapy called tumor treating fields. here to discuss the latest in bio tech is bill doyle and meg is here as well. welcome to both of you what is this treating fields is electricity that targeting the tumor or what. >> so, novocure has a new proprietary platform to treat some of the most difficult forms of cancer. you think about surgeries, radiation and farm cological

therapies. put simply, forces move objects. when we think of forces, we think of physical push iing. but forces can also be delivered at a distance through fields we know gravity. that's the force between masses. we know magnetism, the force between an iron bar and magnet electric fields are analogous but they move particles or objects with charges many proteins have very strong charges including much of the machinery involved in cell division and we apply fields in order to disrupt that cell division of cancer cells >> highly, highly targeted, i presume, to be able to do that and as you say, you've targeted some of the most intractable forms of cancer like pancreatic cancer, met static lung cancer

and so forth why is this approach particularly promising in those as i said, very intractable cancers? >> so first of all, the same mechanism works on all cancer cell types so we've tested it in over 20 because it's such, it's so effective on the basic machinery of cell division and tyler, as you said, we're b able to target it so we can focus on the cancer cells and not harm the healthy dividing cells we've chosen to go after these most difficult to treat solid tumors in many respects because we can while others cannot. >> doesn't seem like it's an easy thing necessarily to administer as a patient to wear. you wear it for 18 hours a day how u easy is it for patients to go through that? >> this is what many respects is count counterintuitive but we've published now that the quality of life of brain cancer patients

is actually higher using the device than not. and i'll tell you why. so fifrst of all, we apply the fields using the device. our therapy works like a drug but it's add manipulate centered using a device and because we can target, we see no systemic toxicity so when these other therapies i've mentioned for the most part, there are all these other side effects we're familiar with when we think b about cancer there's always this trade off between therapy and the side effects. with tumor treating fields, yes, the patient does have to apply what we call trans deucer rays they're external they stick to the skin in the region of the cancer they have to carry a small box the power of the trance deucers, but for most patients, that's much better than the progression of the cancer.

>> of course it's a trade off for every kind of therapy i want to ask you about the next big thing coming up. the jpmorgan health care conference next week your company is scheduled to present monday morning which is a key time slot. tell us from somebody from a company and somebody as an investor in the health care space, how big a deal is next week >> i've been involved in this space for a long time. this is going to be my third decade with novacure before that, i worked at j&j so i was going to the conference bf it was the jpmorgan conference i think it's a very important conference this is really the one time when the entire health care, the financial ecosystem comes together it's become quite a big event. but we're delighted to be able to speak in one of the prime slots. >> just to tie up a loose end. is this tumor treating fields technology in the market today or is it awaiting approval >> this is one of the most important things for investors

i think it's one of the things thatd about our company in 2019 that was part of the you know responsible for the performance we saw in the stock. so first of all, it is approved in the u.s., europe and japan for the treatment of gli glioblastoma the deadly brain cancer. and we have demonstrated in a phase three trial the best results ever shown for that cancer >> all right >> we are generating revenue, positive cash flow and for the first time, profitability in 2019 with that base business and that base business is now paying for our late stage program that you mentioned in pancreatic cancer, ovarian can set, et cetera >> we have to leave it there we'll follow you at the jpmorgan conference thanks very much and that, we've taken 40 seconds out of the next sh