cap. i haven't seen the calendar for friday's show for me to be on. i got to get my ticket to the west coast please send it >> keep checking the mailbox >> usfd. u.s. foods, april '40 calls bottom during the show got it >> good stuff. guys, thank you so much. i'll see you from l.a. on friday "the exchange" begins right now. >> looking forward to in a thank you, scott hi, everybody. straight ahead we check in with legendary investor bill miller he was on this show calling the market bottom in march of 20 20. we'll get his thoughts on the market, the fed, and inflation now. we'll hear if he's as enthusiastic act bitcoin and what big stocks he's buying. the interview is moments ago an under the radar reopening. it may have plenty of pent up demand that name is coming up and in earnings, exchange today

we'll get ready for big reports from disney, uber, and twitter should be an exciting 24 hours first, over to dom with our numbers today. >> kelly, i'm going to take that thought and think about all the under the radar plays and some of the real on the radar ones right now. because we are seeing a rally again today off the lows we've seen over the course of the past week or so with the dow industrials up about 250 points. three quarters of one percent advance there. the s&p 500 level is 4578. up 56 points one and a quarter advance. indicating that many investors and traders are snapping up at least some shares of some beaten up technology stocks the nasdaq deposit 14,433 the last trade up over 1.5% if you look at the sectors this year, we're only in the second week or so of february look at the energy sector versus communication services energy by far and away the best performing sector. 24 % gain there.

the gap, 8% of the downside. that's a massive gap between energy and come services the reason we know metaplas forms one of the biggest services down 32 %. netflix, another big component, down 33% this year that's what's driving that communication services trade so watch that dynamic see if it closes at some point over the course of the next couple weeks. and then take a look at these stocks it's like an appetizer plate, a toughest plate hershey, american express, marriott international raytheon, all hit records highs at some time today we'll put a gold star and a big spattering you mentioned the under the radar reopening plays. i would note, though, that marriott international and expedia both hit record highs. >> and i'll give everybody a hint it's more a health care play that particular name

>> i'm intrigued >> thank you very much >> my next guest is a fan of several big tech stocks. he was on our show last april where we revealed big bets on afl fete amazon and meta, and he's a fan of bitcoin. where does he see the risks 'opportunities now joining me is bill miller. welcome. >> thanks, kelly great to see you as well >> what do you make of stocks right now? would you warn investors about the duration of the year has it created opportunities for you? >> there's emerging opportunities in the market. we're at the beginning early stages of a regime change. from a fed easing accommodating bond buying set of policies to one that's the opposite. so draining the fed balance sheet down raising interest rates, and that raises the possibility that they can make a mistake. they're not flawless, obviously. and so you've got what's

happening with volatility is you're getting some probability of a mistake of recession priced in and that's i think something that you're going to have to live with for a while until it's clear it doesn't happen. >> are you in the recession camp we are all watching the yield curve. we all have memories of the past decade when the fed tightened too quickly and had to keep undoing that so do you think investors should be braced for that possibility or do you think that it's not going to happen, it's just creating entry points? >> you know, one of the things that we try and do is try to not make forecasts about what's going to happen. trying to understand what is happening. what is happening is the fed is signaling a tighter monetary policy the economy is very strong unemployment is low. earnings for many companies are at records state tax receipts are raising above expectations credit card usage is high. all those things and stimulus is tremendous so all those things say that the

economy is strong. and a recession is not on th horizon. it doesn't mean it can't appear. that's what's going on and now we're trying to invest in this environment and not one we can't forecast >> do you have to take a view on rates? we've talked for many years about how there was less and less value in things like the ten-year but, again, in not wanting to forecast, you still have to pick stocks so what do you make of rates here what would you tell people >> well, real rates are sharply negative especially if you use headline inflation. so i don't think the bond market is attractive at all i think the fed wants to tighten, they would like to see the curve steepen moderately, and we don't see any value in bonds there. >> one more question on that do you have a point of view on whether it would be better for them to run down the balance sheet. some say maybe that would help long end rates go up it would unflatten the curve who knows, or would you refer to see 50 basis point rate hike anything there you're watching? >> well, you know, we've been

wondering why they're buying mortgage backed securities i think both of those things in moderation make sense. letting the balance sheet drain off some of the securities they own as well as moderate tightening they're signaling strongly that they're not going to try to tighten too much they're going to be sense tiff to the recession it doesn't mean they'll get it right, but they're look agent the right things >> is your bullishness on the economy why you're buying a stock like tupperware? >> well, as you know, we like to buy stuff that's way down. and so tupperware is down over 50% in the last 12 months. it has a great new business team a buyback that if they get it executed properly will be roughly 25% of the shares outstanding. it trades around four times earnings in a regime that we think is going to shift toward value, i think that's a great play in here >> has the regime already shifted to value as some would argue or do you think it has more room to run

>> it has shifted to value and i think it's got a lot more to run especially if -- again q if rates continue to rise if the curve shifts up and inflation is sticky than i think the market believes it's likely to be. that's good for value. buybacks, that trumps the long data, the high growth names that disruptive so-called disruptive technology names that trade at high multiples to sales and have no earnings. >> with that said, why do we see big tech names i'm guessing maybe we might know the answer, but alibaba, meta. meta is clearly not a big growth story, but why tech plays when you see value for the rotation >> i think those stocks are not particularly expensive and meta -- and so it is expected to grow i think that the prices, i think that represents attractive

value. we've owned it for a long time so it's not a new position for us but we certainly don't want to sell it down here. amazon is down in the last 12 months even though all parts of their business have grown. if you look at aws, amazon web services and the advertising business alone, and you just mark them to what other similarly public companies are trading at, you get almost the entire value of amazon in the two businesses alone and those businesses are very rapid. 30% or 40% growers with high profit margins and big cash throw off. so it is interesting to me amazon bought that stock in the last quarter or so when the stock was off. we think that's very attractive. and your alibaba suffered because of what's happened in china that you've reported on extensively. and i think the chinese are signaling they're going to be easing they want the economy to grow. alibaba is a below market multiple name we think is going to grow nicely those names fall into a value camp either on the sum of the parts or simple p/e rations.

>> exactly on amazon, which a name you've been involved with almost from the start. 20 years now for with jeff bezos and everything that's happened you want to see him buy a name like peloton >> yeah, it's interesting. i think that barry mcckaffy, i think some people are speculating the current ceo is --barry is going to be a figure head. i don't believe he would have gone over there. i think he's going to try to run the business he knows how subscription businesses run we bought peloton in the ipo we sold it close to the highs. my colleague samantha talked about buying it again when it was below the ipo price. we missed it at least on that trade. but it's one that's on our radar here >> very interesting. so peloton, zoom video, teledoc, dock you sign, you know what i'm getting at at a time when we're looking for value creation from the dislocations, are any of these names we should expect you to scoop up

>> we try and pay attention to those kinds of names we haven't -- we don't know -- own peloton now because they're in the midst of a massive restructuring, but we are intrigued with the value of their subscribers and various evident experience with that both in spotify and at netflix and it's a great brand so if amazon bought them, they could fold it in as a service that they could bundle with prime. they've got 100 million prime users. if nike bought them, if apple bought them, peloton is not a big enough market cap to make much of a debit in those company -- dent in those company's valuations but it could be an attractive addition. we're not betting on that. we're looking at the fundamentals of peloton and thinking about it. other names we've looked at but don't have a position right now. >> let's talk about crypto which has had a tough couple months and a nice comeback.

if you confirm whether half your net worth as was reported recently is in bitcoin >> well, it was reported maybe misleadingly because the report, i put half of my net worth in it. that certainly didn't happen what happened was i put a few percent of my net wort in it a long time ago, and it grew to be half of my net worth now it's less than that because it's down since november but no, it's still a very big position it's early days in that entire space. kpmg, the accounting firm announcing they're putting bitcoin and ether on their balance sheet today was big. obviously they're plugged into all kinds of companies and kmpg over here as well so that validates to a certain extent on ways microstrategies balance sheet stuff does not this is a potential for the portfolio. i think also you're going to see a lot of adoption among

foundations and endowments and institutions this year and that's going to continue so yeah, the interesting thing about bit kellyancoinbitcoin, bd go on and on, bitcoin in one sense, has no intrinsic value. databases have value, but the value is similar to the value of a collectible. a baseball card, a painting, it's not in the materials and the construction it's in what -- if people think it should be part of their portfolio. that's in one side of it it's like an insurance policy. insurance policies have no intrinsic value. in fact, you want them to have no intrinsic value you don't want to have your house burned down or get in a terrible accident, but you pay for insurance in case it happens. and bitcoin is insurance against financial catastrophe as we see in lebanon or in afghanistan or many of the other countries. or we saw around the time of the pandemic so there's that aspect to it and then there's the theoretical

aspect it's the intersection of what frederick hyak advocated the denationalization of money he thought money should be decentralized. and another thought the fed should operate on a rule and grow the supply at a steady pace bitcoin represents both those things it attracts true believers in that kind of thing >> i notice a call of your stock picks are bitcoin plays. silver gate capital, stronghold digital mining are those -- just tell me about that i mean, at a time when you could basically either be saying you want to diversify away from it, it sounds like you're doubling down on it and even on some of the ancillary players that should benefit from the bitcoin long-term success. >> there will be more companies coming public the way stronghold did. the bitcoin miners are trading at very attractive valuations.

we look at these not so much as saying it gives us an indirect way to participate in the growth of crypto. we're looking at what they can earn in the next year or so. stronghold is going to report a loss for this year but i think stronghold which is around $10 or $11 c they could earn $4 or $5 next year, and it was 30 recently. silver gate bought and didn't get much publicity, bought facebook's dm, the stable coin facebook is developing it paid $182 million for it. that's what the fed is talking about. and what's -- in terms of stable coins is the fed is concerned rightly about those, because they're not regulated. and they represent something like a money market fund as it relates to crypto. silver gate is an fdnc insured bank if fed implied that's where they'd like to see stable coins with strong regulatory oversight. i think that's something people haven't factored into with

respect to looking at silver gate which only has a $3.8 billion market cap. >> let me ask you about final names you picked up. i believe they're unrelated. ginet and vroom. could you say why these are the kind of names people might want to think about >> sure. gannett is melting in front of our eyes newspapers are declining secularly, but if you look at what the new york times has done with their digitizing strategy, gannett is doing something similar. they hit their cash flow targets. they got approval for a stock buyback which we think is great. we think gannett which trades around $6 right thousand, it's oh only of the names you mentioned that we are owning, we

own now or are buying, it's the only one up in the past year which is pretty remarkable in itself but it's only up 5%. we think gannett can be $20 or $30 in three or four years that's attractive. and varoom is the poster child for something we bought on ipo we sold a chunk. we should have sold all. it's down 8 0% in the last 12 months i think it's attractive. it trades at a huge discount to car car caravana with trades at twice revenue. this is half revenue it's about three our four years behind caravana. i was with the founder of the father of caravana, someone said some of us are holders of vroom and licking our wounds

what do you say to that? he said there's a lot more room in the space than one company. he said it's a good management team and i think they'll be successful >> that's quite the vote of confidence as everybody gleaned. bill, i if can recast everything you told us the following way, you're bullish on the u.s. economy. you think the fed is basically going to get it right, but there is going to be volatility, a shift to value, some of the interesting different -- i mean, a value sort of summarizing how you feel before we let you go here correctly >> i hope the fed gets it right. i'm looking at what they're doing right now. you know, the governor puts out today saying that -- or saying that he thought that inflation would be around 3% by the end of the year if that's correct, stocks will be higher. i think when i'm watching emotionally is inflation expectations i don't think the headline inflation numbers mean much. inflation expectations, and the 30-year isn't telling you there's any worry there where the tips are isn't telling you

there's worry. those prices could be wrong, but i'm looking at inflation expectations and not headline numbers. >> if they can stay where they are, it's a better investing environment. bill, it's a pleasure to have you on thank you for your time. we appreciate it great, thanks. bill miller with miller value partners all right. ten-year notes were up for auction. rick santelli tracking the results. what are we learning >> well, let's put it this way we don't need to pour any tabasco on this one to make it hot. this auction is hot, hot, hot. i gave it an a plus. and that's with two out of four categories just being slightly above average. you'll see why in a second the yield at this first primary auction, not a reopening of 37 billion tens, 1.904. the one issue market was trading well above 1.92. so it really priced aggressively and the bid to cover at 2.68 was the best since may of 2020 that's only slightly above

average. the direct bidders at 15% was actually a little below average. and this is the highest yield since july 10, 2019, auction okay now the good parts the indirect bidders you know them well, represents foreign interests. 77.6 my 20 plus year database of auctions doesn't have one auction higher than that and 7.4, that's the percentage the primary dealers ended up taking which is next to nothing. the buffet was cleaned out the investors, especially those indirect bidders pretty much ate all the ten-year notes there was to have. that's the smallest of my 20 plus year data bank. 30-year bonds. as you look at the screens, we're looking at 1 .91 % that's the old guy the new guy will be showing up mostly in the charts tomorrow. keep an eye on the rest of the yield curve to truly get a sense of how the auction may trade the

trading for the rest of the session. >> rick, thank you still ahead, this stock is down a fractional gain in january to snap the longest losing streak in five years. could it be an under the radar reopening play to watch? we'll hear from one analyst who sees it climbing from here will uber's results lay out a path or a u-turn we'll dig through all this and more on earnings exchange. we're back in a moment

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welcome back to "the exchange each passing day seems to bring more news of reopenings. the governor of new york announced the state will lift the mask mandate effective thursday and while venues and restaurants are clear beneficiaries, my next guest says medical device makers also stand to benefit. check out shares of medtronic down nearly 14%. but could the return of elective surgeries give the stock a leg up joining me is steve weiss with a 128 price target and a buy on medtronic. rick, welcome. and in some ways i thought elective surgeries were happening during the pandemic,

because people were sort of stuck at home, but obviously that was only once you could get the services in the hospital again. >> exactly and thank you for having me on it's a pleasure to be here and i'm excited to talk about medtronic. to turn to the question about electoral procedures the retall alty is hospitals were overwhelmed by covid, and there's been an ongoing shortage of health care professionals able to manage those covid patients, much less address elective procedures. and patients have been afraid to go into covid settings, and even go visit their health care primary care physicians to get referrals in so it's actually there's been a marked slow down in procedures, particularly like salespeople w -- people waiting until it's safe to get procedures >> do you think there will be a rapid snapback in demand, or

could it take time and how does it relate to your call back on the stock? >> iabsolutely think there's going to be a gradual but steady reacceleration over time and the staff issues aren't going away overnight and it's going to take time to get all the patients addressed but the population is aging. we waited two years to get many of these medical conditions properly addressed the backlog is there and that's very positive and it's going to be positive for medtronic, a market leader in a global company and market leader in virtually every market they participate in. >> still, let's talk about the up side. about 20% for your price target which still, you know, people might say all right, but i want something that can give me 50% or 08% up side it's hard, but talk about your expectations in the near-term for the stock. >> i mean, i think that medtronic is a solid total

story. the dividend was raised years in a row. the part that's compellingfor investors over the next several years is you have a new ceo who is transforming the business fundamentals and the way the company executes has significantly increased rnd spending on their innovation pipeline, and just in the last 12 months they launched over 180 new products all that suggests that as covid wanes and these new products are fully rolled out, growth acceleration margin expansion, and i think reexpansion of the multiple medtronics selling two or three terms below the comparable group, this stock has solid up sides >> interesting you make a great case, and it's something to keep in mind as we watch the reopenings which hopefully will continue to gather steam it's a pleasure to have you on today. >> thank you >> rick wise

coming up, congress is moving toward banning members from trading stocks. we have the details ahead. plus teva pharmaceutical is surging. shares up 7 %. they're down about 30 % from the recent highs we'll talk to the ceo ahead. "the exchange" is back in a moment re. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

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welcome back, everybody. buying everything today like andy brener put it this morning, they're buying stocks and treasuries rick santelli told us about the strong auction dow is about 100 points off the levels nasdaq positive for the month of february it's a session leader up 1.7%.

let's get a cnbc news update >> kelly, hi vice president harris will hold meetings in ukraine with persons next week. the talks will be held during munich talks in that part of the world joint military drills getting an early part exercises with para troopers military drills are set to get fully underway tomorrow. most of the satellites launched last week may be knocked out by a solar system. the satellites were in a temporary low earth orbit when the storm hit and increased atmosphere drag dooming up to 40 of them. the star link owned by elon musk still has nearly 2000 satellites in service you can head to cnbc.com for more trucker protests in canada spreading to the u.s who is organizing them and when a convoy to washington d.c. may

get underway that's tonight at 7:00 eastern no signs of the protests slowing down still ahead, disney, twitter and uber set to report results and the options market is signaling pops we have the action, the story tresexinarngnis exchange

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welcome back, everyone it's time for another edition of earnings exchange where we give you the action, the story, and the trade on some big names set to report results. we'll start with disney. shares higher from the print 28% down from their all-time highs. omicron concerns on parks. growth slowing for disney plus, and we know what happened to netflix after the earnings report a couple weeks ago. julia has the story and the trades today, gina julia, what are you watching >> well, look, you mentioned it. disney plus, i think that's going to be the number one most important thing to watch disney plus subscribers fell short of expectations in the last earnings report the question is is that growth accelerating and is disney on track to hit the targets between

230,000,260 million disney plus subscribers by 2024? that's the first bucket. the second is the theme parks. how much are they continuing this rebound and what kind of bookings is the ceo seeing going into the important spring and summer seasons and then third, i'm interested to see what he says about sports rights is he interested in more potentially nfl rights, cricket rights as they think about making espn plus more competitive. >> cricket cricket? no, i'm kidding. i know that's like more important than the u.s. stuff. gina, the stock, love it or list it >> we still love it. this is something that we own within our portfolio and the thesis hasn't changed. the pandemic certainly put a halt to their operations, but they haveshown that they have -- they are still dominant in content, dominant in distribution, dominant in brand strategy and their growth in disney plus, they managed to hit nearly half their expectation

for 2024 during the pandemic and in the early part of the pandemic so i would say that we still believe that this is a company that can dominate, and that we're going to start to see evidence of that as we hear the earnings today and continue through the rest of the year with regard to the disney plus slowdown, they're still expecting to ramp up a continued openings for disney plus in multiple countries through the end of the year. so we could see that pick up by the end of the year while parks and other parts of the business are reopening. >> all right you're sticking with disney. don't miss the ceo live on "closing bell" today following the results around 4:00 p.m. eastern time both of you stay right there and we'll talk twitter they report tomorrow morning the shares are down 54% below the all-time highs will the results look more like snap or meta julia, from options market pricing, it could be a volatile one. >> it could be a volatile one. and remember, this is the first

earnings call with twitter's new ceo. so it will be interesting to see if he says anything new or different about the direction he wants to take the company now that jack dorsey stepped down from the role. people don't know him that well. he's not as well known by the street the other thing is revenue growth how much did twitter see the revenue impacted by the apple operating system changes or are they able to accelerate their growth we're looking for about 22 % revenue growth and of course, that all-important monthly active user number. the company is expected to be at 230 million active users adding for about 211 million in the third quarter. this is after in q-3 twitter's user numbers were pretty much flat some hope that all those changes in the product will start to accelerate growth. >> gina, everyone always watches those figures, especially after facebook's was at their dayty active users fell for the first time 211 million. that was last quarter.

maybe 230 is the number to watch. what do you do with the stock? >> this stock is interesting this is one we own, but right now the market is taking out anything that has a high multiple and shooting it and there's a lot of babies getting thrown out with the bath water. we've seen earnings revision on this stock highly negative so i actually think that the bar is just moved lower and lower for the stock to potentially surprise to the up side. so we could actually see a positive surprise here >> it's interesting. cathie wood's arc sold more of the stake in twitter this week this one is before the bell tomorrow julia, thank you, we appreciate it we'll turn our attention to uber coming up in a few hours shares of rival lyft initially sold off after the report last night showed a drop in active riders they're up 4.5% today. how does it bode for uber? deirdre has the story on this one. >> i don't know how that bodes for uber i'm kind of flabbergasted by the move they came out with guidance last night, lyft, that is, that

shaved about $100 million off revenue for the current quarter. shares down as much as 10% now they're higher uber and lyft, is one that hasn't gone anywhere since their ipo. that's always the question for uber what can they show is food delivery business still firing on all cylinders. they're losing a lot of money and losing market share to door dash and some other competition in this space. so i'm looking for gross bookings here as well. lyft does not publish this metric uber does. that will be a sign of demand. i think the picture at least for lyft changed to that demand picture from the supply picture. the ceo there said that they have no more troubles in terms of driver supply but that it was the demand that disappointed so i think that's going to be key for uber >> it's amazing. the stocks are up. gina, what would you do with uber >> we don't own uber it's hard to get over the negative operating leverage problem they have. they lose money on every ride and every tlif ri of food.

and yet, and the market right now is really, really taking a hard look at anything that doesn't generate cash. and so i think that the outlook for this company just isn't that good given what the market is demanding right now which is profitability and cash flow. >> as you've told us many times, there are other stocks you would rather be owning we'll leave it there gina and deirdre, thank you. a big afternoon and morning for a lot of these names which are reporting. we look forward to that. speaker pelosi changing her tune and joining the latest bipartisan calls for a congressional stock trading ban. the details, the debate, and why her timing is raising eyebrows and earlier we heard from bill miller in the top stock picks. a lot of the names are moving higher after the mention gannett up stronghold digital, stronghold up 16% vroom also up about 8% that's one he says he's sticking

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after years of resistance, house speaker nancy pelosi joining the bipartisan efforts to ban members of congress from active trading this also comes about a month after scrutiny intensified over her husband's multimillion dollar tech trading win fall we have that story and the latest details >> well, pelosi has said she's working with the house administration committee to review the existing proposals and find consensus she acknowledged the shift in position is amid growing pressure from members. >> i do believe in the integrity of people in public service. i want the public to have that understanding. we have to do this to deter something that we see as a problem, but it is a confidence

issue, and if that's what the members want to do, then that's what we will do. >> reporter: now, notably, she ignored a question from a reporter about whether spouses and dependents should be part of the trading ban. the bills that are out there cover the entire family. over in the senate, there's a group of about half a dozen democrats who were trying to find a unified approach to this problem. they include senator elizabeth warren out today with a bipartisan bill that would ban ownership altogether it also includes senator sherrod brown and shawn ossoff with their own separate proposals the conversation is moving from if the f this should be done to how to do it there are still questions about divesting versus blind trust as well as the penalties for enforcing any of these rules we are going to talk about all of this in the next hour with representative dean phillips who is one of the members that pelosi alluded to who is calling for change back to you. >> there seems to me to be a very big difference between two bills that are being floated

the one would say whatever you have, you just freeze it and put it in a blind trust. someone else can trade it but you don't know about it. the other would say you have to sell any stocks you might have i think this is phillip's co-sponsored bill and you couldn't own it. i wonder if that goes too far or if people think a blind trust wouldn't go far enough >> that's the bill from senator elizabeth warren and republican senator steve danes. and one of the arguments against this altogether is that this could discourage people from even running for congress. right? this could be one more barrier to recruiting good accounts who want to serve the public that's an argument against it. the other thing pelosi brought up is that there is a benefit actually for folks who go into the executive branch if they sell their stocks in order to take a position in an administration, then they get to defer some of their capital gains. are you actually inadvertently offering some of the people a benefit that you're trying to avoid in the first place

there a lot of technicalities here and that's why this debate is really just sort of picking up steam as folks dive into the details. >> as my producer just joked and i think the public would say, so they win no matter what. >> exactly right >> we will follow the details closely. see what's going to happen here. we appreciate it we'll have more next hour. coming up, shares of teva improved profit margins. we'll talk to the ceo next on "t ehae. hexcng

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shares of teva are climbing 6.5% on stronger than expected earnings the shares are down about 30% over the past year as covid kept people from seeking regular preventative care. let's bring in kare schultz along with meg >> thank you for being with us let's start with the quarter the affect of covid and how you're modelling that going forward through this year. >> nice to see you again, meg. we are modelling in the way we think there will be some level of restrictions here in the

first quarter, and then we are optimistic that in the second quarter this will be going away both in north america and in europe but we have in our guidance sort of made it broader than we normally do because we don't know and if something were to happen, and there would be a new variant or something like that, variantn we sever new restrictions then we have a sort of a range in our guidance so we could also hand thal situation but we're optimistic that we'll see a return to more normal volumes. we've had the phenomenon that less people have been going to their either private care physician or personalist and as a consequence we've seen total volume down in both generics and in europe and the u.s. >> well another issue that has been front and center for investors and analysts looking at teva is the opioid litigation you just struck a settlement with texas $225 million what is your expectation for

when you could reach a national settlement, if you're reach a national settlement and how long that might take? >> yeah, so we would like to reach a nationwide cemsettlement because it is the best thing for everybody. not least for the people suffering from substance abuse in the u.s. unless there is a settlement, there is no resources going towards them and no products going towards them so what we managed to do now in texas is we reached a settlement where two-thirds of the sem is cash over 15 years and one-third is product in the form of generic spay that could be used in situations with overdosing. so we think this is a good settlement for the people of texas. it is also a good settlement for us to put this behind us it includes the state of texas, but also all of the soft conditions in texas. and we think this could be a good model for a nationwide solution, basically benefiting the american people, and using products actually manufactured in our manufacturing site in

salt lake city where we have a dedicated line for this generic. >> is there any kind of trigger that you think helps you reach that nationwide settlement or does this sort of keep stretching on and on and going state by state >> no, we are really aiming at a nationwide settlement because we think that is the best way to do it that is much more rational way for everybody. and you could say, you've been following this for many years now, and you remember a bit more than two years ago when we had the national framework and that was at the same time as johnson & johnson and three big distributors as well we were offering less cash, $250 million and more product. and at that point in time the other four companies were offering only cash i think it is fair to say that the plaintiff lawyers are not interested in us donating product because they don't get any fees on the product and the $250 million that we were offering was simply too little to satisfy their need for fees

to pay for this whole thing. so, now with the new offer, where two thirds is cash, one-third is product, there is probably a balance that makes it more attractive for the lawyers and since it benefits the population, i think most of the states will be positive. i'm hopeful within the next 12 months we'll be able to reach a nationwide settlement. >> and of course just sort of a broader question about the future of teva, you've been managing this company through a tough time really paying down a lot of debt and we've been talking about managing through the litigation questions. what argument do you make to investors, this is a good business to invest in right now when you see competitors like navartis looking at exiting the business through santos. >> this is a very good business. it is a very solid business. what is amazing about generics is that you know the demand will be there as you know more than 95% of all pharmaceuticals used in the united states are generic or so

the demand is there so the health care system reaches the products whether it is the u.s or the rest of the world and we're the leading company in these type of products so you know the band is there and you have a steady business with good margins, good cash flow, and you could say unfortunately in the case of teva, when i joined four years ago, we have had a very high debt due to some acquisitions that had been made and we have litigation that was legacy litigation going back ten, 20 years and we sort of needed to clear that up before you could see the true value of the company. but underneath operationally, we're doing great. we've been paying $17 billion to the bondholders basically paying interest in the last four years and of course we won't keep on doing that so at a certain point in time we'll stop paying to shareholders and then you'll see the value come out

>> all right kare schultz, thank you for being with us today. >> thanks. >> and meg, thank you very much as well. our meg tirrell with the ceo offa up next, an entire sector is shining today after this stock's earnings beat. the name and the price action next

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welcome back a strong earnings beat to four years end phase giving the solar complex a boost. pippa stevens with the check of the action. >> end face shares off the highs of the day but still up 10%. they kicked off last nywith a strong report and that is injecting many optimism into the broader industry the company beat top and bottom line estimates for q4 and posted report revenue and phase gave upbeat guidance for the current quarter. now analysts likes what they

heard and five firms raised their price target despite today's move the stock is more than 40% below the november lie but the ceo is unfazed and he told me the company is resilient and optimistic and the demand for batteries remains strong now this report comes at a time when solar stocks have faced a whole lot of headwinds there is uncertainty on the policy front both federal and state. supply chain pressures rising rate fears and out of growth and into value names like maxion solar and sun nova and sun run on the move today but below the 52-week highs. >> a lot of them are different business lines end phase was one of the more quality names because it is in inverters, is that right. >> exactly so they make specialized miko inverters and storage we've been talking about whether or not companies could raise prices and

continue to attract new customers and because of this specialized practices, they raised the prices last fall and again in march but they're betting customers are continue to favor their products. >> something the manufacturers have struggle to do. pipa stevens that does it for the exchange. stick around, tyler mathisen picks things up right now. keloy thank you very much. welcome to "power lunch. i almost said welcome to tyler mathisen but this hour we'll focus on inflation. that is the theme of the hour. maybe the theme of the month and the year first oil. there are growing calls as you know for hundred dollar crude, but not everyone is in that camp city's ed morris will join us with his contrarian call he thinks oil prices will fall second wages, competition for workers leading to rapidly