there's no natural buyer of bausch & lomb. who wants to go up against novartis and j & j. to sell valeant it's because of the cash flow. >> if you get rid of bausch & lomb, you're eliminating a lot of t as well. >> not to mention they're increasing r & d. the whole plan was smaller drugs, increased price, tax rate, which of course they still have extraordinarily advantageous tax rate, and don't skpend anythi spend anything on r & d. >> valeant still has backers. >> and value x still delivering -- >> they have some backers, but i just think that i've seen when a u.s. attorney investigates a sitting ceo or a ceo who's left, it has not really mattered. so don't use that as the reason to sell. use the fundamentals. >> unless they come after the entire company. >> well, that's happened, and that's usually because of a problem with an actual drug that has hurt people. >> right. >> that they have hidden memos. you know who i'm thinking in those cases. you're thinking about asbestos, you know, stuff that is well beyond what we're talking about here. >> speaking of drug stocks, we'

but bausch & lomb was down, salex sales were not as good as they might have expected to be.hey're in the process of selling salex. they spent $16 billion on it. >> did you confirm that it is for sale? >> i've confirmed that it's an $8.5 billion price with a royalty stream, but they spent $16 billion, including the debt they took on, which will stay on valeant's balance sheet. when you've got ebitda going down, your ratio goes up. >> now, we know they repaid $450 million of additional permanent debt. they only have $160 million of mandatory term loan repayments. >> they don't have near term maturi maturity, especially given the sale of the salex business, which is in process. but it's still going the wrong way. >> and it's obvious that they could be violating covenants, right? >> that's a concern. we'll monitor the call. whatever else did or happened on that, buck you see valeant, when is the last time that stock saw 13? it's been a while, right? in fact, i don't have a 52-week low of that low. >> look, there's a lot of people who were -- wells fargo was an incredible bear an

and while they have some assets like bausch and loam that are reasonably good -- i think they still overpaid-- a lot of the drugs they bought aren't going to be worth nearly what they paid for them, and that's the problem. maria: reallyincredible. congratulations. you called out valeant when it was all the way up there, you called out enron when it was all the way up there. what's your big short right now? [laughter] come on, tell us. >> well, you know, a lot of those are, a lot of those are only visible in hindsight, maria. one name that certainly sort of juxtaposes our views on a couple different things isalibaba. and alibaba, the big internet e-commerce in china, is being perceived as a play on the growth of chinese e-commerce. and yet when you trillion down intoally -- drill down into alibaba, it's actually quite an interesting story. and for lots of reasons that are accounting related and corporate governance related. and yet wall street's piled into this stock without really understanding the fundamentals of what's driving the business. and my good friend jim grant has called china the

. >> bausch and lamb. >> i don't know if that's the koor asset. there may be big tax liabilities with that. there are things like xiphaxon. maybe they sell that. that's one of their crown jewels. >> david, thanks for going to a camera for us. >> david marris, wells fargo. >> judge, whatever happens here with valeant, it's going to happen relatively soon based on the shake that you see going on in the options markets because the normal volatility for this, which is very high volatility because of the sell-off that we've seen is normally about 90%. right now it's 160. they're telling you through the future of calls and puts, trading that's going on, something is going to happen in the next two or three weeks. it could be pretty scary. >> more broadly health care has been hammered of late. 7% over a month. 11% over three months. the arrows are red across the board. it's gotten worse just when you thought it couldn't get worse. >> from a political standpoint, you have certainly suggested -- >> this is not -- but this is not a typical situation. >> let

bausch & lomb? >> i think bill ackman made a comment about renaming the company.oing to be a slow growth specialty pharmaceutical company that for the next few years will be doing disposals. but they'll be putting money in r&d. products will get approved. it's going to be a completely different business model from what it had before. >> how do you feel about that? i mean, i would imagine that you entered into this position when valeant was closer to valeant opposed to a company that's closer to sell a lot of pieces off until it becomes possibly a bausch and lomb. >> i think it was probably in the high 30s. and then the vast majority of the position has been taking much lower prices. by the time the stock had collapsed to that level, the business model didn't work anymore. it was a question of how to create value for shareholders. >> do you think bill ackman can ever make his money back? >> i don't know what his average cost is, so it's hard to say. >> over a hundred dollars a share. >> it's going to take awhile. we think valeant is worth easily double the current

there's a report that valeant pharmaceuticals may sell some of its assets part of the bausch & lomb unitld bring inasmuch is to run a half billion dollars. valeant is sending -- selling businesses to reduce their debt. francine: thank you so much. a panel of senior judges will rule on the challenge to prime minister theresa may's plan. we are back with rob would from bank of america. we are deciding whether she needs parliamentary approval because it seems unlikely she will get it to get on with brexit. that is why the pound is expected to move on the back, but there will be a million appeals from here. rob: there is a lot of questions. if theresa may were to ask for parliamentary approval it seems likely she would get it. there are probably a majority of members who would vote to trigger article 50 and if you look across the u.k., the vast majority of parliamentary constituents are in favor of the u.k. leaving the e.u.. the issue that she will probably get the authority to do it. question is what else will she need to do? will there be a man stacked on requiring for instance -- amendmen

discussions are still preliminary and that valeant got tho tat eye business part of a 2000 purchase of bauschentially, if they sold both these units at these reported prices, this could be about $13 billion for valeant. >> correct. and that's why people say the stock -- it did get the bounce prior to today, but we're looking to see if this has an overall move on the stock price since they've unloaded about $13 billion of assets, possibly. this is a smaller deal in the grand scheme of things. if that salex business does go, which they mayor m or may not b selli selling, what that will do. >> as it faces potentially -- >> a criminal investigation. not a civil investigation, not we're sniffing around, literally a potential jail time for its ceo and another -- >> their formers, right. >> absolutely. we'll continue to watch this again. valeant shares down 8.5%. "check, please" is next. what are you doing? getting your quarter back. fountains don't earn interest, david. you know i work at ally. i was being romantic. you know what i find romantic? a robust annual percentage yield that's what i find