you look at gilead, amgen and celgene.ilead trading 7 times earnings down from 40 times beginning of 2014. it came down because that's around the time the drug pricing pressure started to ratchet up. we talked about drug pricing when there were real companies like gilead. it started to come down. gilead is trading at this level because people don't know what is going to happen after they cure everybody of hepatitis-c. folks are asking who are they going to buy. they think it should be trading higher. >> how does amgen compare? >> a higher multiple trading 20 times earnings compared with gilead's seven times. sorry. trading 15 times down from a high of 20 times. all these biotechs are down right now. celgene is the same. people say these are really great looking stocks. they've got a lot of earnings visibility. if you look at the top six pi techs in the ibb, they are trading 18 times 2016 earnings compared to 14, 15 for the s&p 500. they've got earnings expectations for 11% this year. that's why analysts are arguing these b

i'm going to say celgene because it's down so much.ike, obviously shoe apparel, the stock not doing well right now, i think that might be an opportunity to go down a couple. let's put in general electric, okay? let's put in ge. we're reading all those articles about the innovation company moving to boston, i think that's the right call. you need an industrial. that will take the place of dexcom. if you only had celgene or only had dexcom, i would not have made that change because dexcom is great. ben in florida. >> caller: my stocks are apple, disney, nike, at&t and bank of america. >> let's take a look at this. okay. nike, i just went over that. bank of america, i have a lot of it for the travel trust. don't think it's going to run away to the upside but i do feel like this is the year. disney, under fire for cable and espn, i think it's fine. and then apple, after the close of analog devices, they did say things are quite weak. we're not into apple for the near term. in the near term we know that cellphones have peaked. we're in it f

celgene mixed with guidance.he conference earlier this year and didn't present any changing but even that one getting weighed down as well so tough across the board. eli lily. the same story there. we already heard 2016 guidance. eps in line. revenue slight beat. all eyes will be on the big alzheimer's data coming up later this year but people are saying right now for bio tech and pharma people are not buying and you can see that in how the sector is trading in the red today. >> down 9% so far this year. it's at the bottom in terms of s&p sectors this year. what are you hearing around weakness? is there some rotation? such a strong performer over the last few years. >> it has been. folks are saying it's a risk off environment that does not bode well for these companies that depend on these risky trials. they have earnings potential so the analysts are arguing they should be rewarded for that. people should be buying. all of the concerns of election and drug piesing, none of that is good for biotech and pharma. >>

especially celgene.ouple of weeks ago it traded up to 120 on some good news and dan said, it would fade and here it is down to 100. and ibb, the low right before october, we had talked about the level. tim seymour flagged it and we dropped it off and seemingly bounced, i won't put that much into it and a good volume day but if anything else on the ibb, i think you could trade it long. >> and some of the names really sold off. and i'm not talking about the celgenes or the am agains with real earnings. but the speculative names with great pipelines. some of them, as they have been soldoff, if the pipelines are promising enough and i look at names like instinct and oncology names because that is the hot place where people want to be. >> aren't those the exact places you don't want to be. >> i'm not saying those are the buy. what i'm saying is if the conversation is are the lillys of the world, are the bristol and the merck, we just had the ceo on, where are they? because they need growth in the pipeline. >>

i'm sure he's right, which is why i think celgene is a buy.morgan is usually a time you want to buy stocks. >> the guidance from anthem and aetna not bad. >> no. balance that against mckesson which is horrendous. rite-aid, maybe losing that contract. >> the three big gainers on the dow, intel, coke and apple are all upgrade related. you already covered the intel call. stifel takes coke to a buy. >> i think coke is doing well. i do. people just say, well, they're yawning, coke is hedged against the yen and hedged against the euro, not against some other currencies. there's been a lot of changes put through, and you will start seeing better numbers from coca-cola after a long period where the stock has been stagnant. i think it's a buy. i also like pepsico here. also doing a great job. >> the stock has been a decent stock. i continue to wonder -- again, this is a big question mark given the state of the equity markets -- whether we will see end-stage or late-stage consolidation in these consumer products, big companies? pepsi may choose to do so

i'm still full time at celgene. i just think dynamic companies should challenge their leaders, should extend them and stretch them, but also capitalize on their strengths. we've got great leaders, mark and jackie, and giving them more responsibility while i stay on as executive chairman full time to help lead the strategic direction of the company and drive strategic initiatives, i think we're getting the best of both worlds. really promoting people who could do more and greater impact and retain me to help do the kind of things where i have been focused on. so i think the future of celgene could not be brighter than it is today. >> well, there is a negative reaction in the stock together. just seeing the stock fall so much. are you hearing -- what do you attribute that to? what do you hear from investors as to why the stock is down so much? >> we have lots of meetings and they're just starting, but overall the tone is positive. the underlying fundamentals in the markets and liquidity is pretty weak. we don't have l

a week from thursday. >> three days down, by day two, celgene bottoms, day three, celgene is up. studied this i'm so old. i said this is my 680th down whatever. >>> it will be a busy week for data. we'll get ism, construction spending, some fed minutes, the jobs numbers coming on friday. there's the opening bell. and a look at the s&p at the bottom of the screen. at the big board, the nyse regulation team kicking off the first trading session of the year. at the nasdaq, microsoft band and microsoft health celebrating fit week. >> microsoft. >> yes. >> that's an interesting stock. microsoft was the first large cap stock to bottom off the august decline from china. that's when it all began. if you look at the microsoft rally it began in the midst of the china decline. probably one of the best performing big cap stocks from that moment. >> it was. it had a good 2015. >> yes, i did. it had double digit increases. i think it can repeat. >> many of the names in energy did not. we looked at them in terms of the biggest loser list, jim. >> yes. >> we see wti up this morning on these incr

so far, celgene is outperforming the nasdaq biotechnology index. betty: thank you so much.a ride it has been. we were reporting that nasdaq lows today,at its but now it is in the green. all the big tech giants had big, big declines, some of them moving below their 200-day moving average. one unusual winner was twitter. at one point, this talk was up nearly 10% -- at one point, the stock was up nearly 10%. what gives? let's talk to an equity research analyst at sgm capital and also ,ur bloomberg editor at large cory johnson. i think there were rumors about twitter being bought, and news corp. came out with a few comments that they were not interested, but it sounds like some people are thinking twitter is in play. victor: i'm surprised it took this long for the rumors to start to circulate, but i think twitter is attractive at these levels. i think it is a unique asset. on a monthly basis, it touches all that 800 million users around the globe -- it touches 800 million users around the globe. at this level, it is definitely attractive. what kind of company would be most attr

you mentioned celgene. nothing has come out. so i think those are the ones when you're getting swept down with the market for a variety of other reasons outside of what's going on in your company, scott, those can be opportunities. >> you're a holder of pfizer. >> pfizer, merck. >> bristol, not lilly but the rest of those. >> i own pfizer and merck as well. the thing to think about here is it's hard to see where the growth is going to come from. i own them for the dividend yield. the cash flow. the problem with pfizer in particular, it's been a carousal of by something big and then sell it off in pieces. they're doing this for a tax reason in my opinion. after that, they're going to split up again. the question is when does it ever stop. after they split up, they're going to bulk back up again. it gets a little tiresome. >> those companies have growth in the pipeline. >> i actually think pfizer has a great pipeline, particularly in oncology. the prone is, it's a drop in the bucket when you're at this size. >> all right. as we he

there is a pipeline of ten years that celgene has.pe of celgene is about 18 so the pe would be diluted, it would be higher but the pe to growth rate ratio would be much more favorable under that scenario. >> in a word, len, why also do you like a merck here? >> merck is going to come out with a drug for hep c that will get approved at the end of the month, the stock is trading at about 14 times earnings, yielding 3.5%. i believe that the drug, will do well in hep c, probably be priced at a 15% can i say count to current therapy. i believe they will also be a factor and this isn't that well known in the next significant hepatology disease state called nash and i think that that drug area will be over a $20 billion area. i expect merck to be one of the companies involved. >> like we said, the buying calls were coming out on wall street today, in this case len was calling saying it's time to get into biotech. we appreciate you joining us to explain a little bit more about why. >> thank you so much. >>> general electric's decision to ditc

. >>> celgene cut its 2015 profit outlook, and it is also projecting that 2016 sales will miss analystates and the biotech company also making changes at the top. its current chief operating officer will become ceo effective in march. shares of the company finished down nearly 5 1/2% to $103.03. >>> the for-profit educator apollo education group exploring a possible sale to the private equity firm apollo global management. the for-profit educator has struggled recently with enrollment amid various government investigations. shares of the company down more than 3% to $6.38. >>> online craft marketplace etsy getting hit today as a lockup period for early investors expired. that means those investor shares can be sold and sell those shareholders did. the marketplace went public back in april at $30 a share and it's seen its stock drop ever since. today shares of the company fell more than 11%. they finished at 7.43. >>> well, coming off a year with record auto sales in the u.s., automakers believe they are in the midst of what could be a long and very prosperous run. this week they're unv

there has been concern recently. .elgene coming back celgene fell after that company came out with a forecast and replaced its ceo. energy stocks are rebounding. if you take a look at what is going on with commodities today, interesting action in crude oil up by .5%. this represents a rebound as well. gold, which caught a bid in the early days of 2016, has given that up in the past few sessions. as it has been over the past couple of weeks, the asset to watch has been the chinese yuan. we are seeing little change. this is the dollar versus the -- it does not revisit a huge move in comparison to what we have seen. betty: it looks like it is but it is not. julie: the range is relatively small. people are looking for stability . today, they got it to some extent so that is helping fuel this rally. .etty: let's check in now vonnie quinn has more. vonnie: turkey's prime minister says islamic state is behind that deadly suicide bomber attack. the explosion killed at least 10 people and injured 15 others. most of those killed were german tourists. turkey suffered two major bombings last yea

let's start with celgene, you like that a lot here?ing around $120 a share and they had a big overhang of their stock removed in december, actually. they had this patent lawsuit. it's going to open the flood gates for billions and billions to drop to the bottom line and they're growing great multiples and they've got irreplaceable drugs. celgene is growing and trading at 15. >> what about gilead? >> they have the hepatitis c drug. but they're one biotech that gives off a good dividend of 1.57% and so much cash on the balance sheet and they're going to be able to acquire a great target. and once they address the hepatitis c, you can get in-- >> high beta names, another one, google. >> google is getting back to that, dominating the spaces you want to, whether it's search, mobile, cloud computing, and they're a great company. they're stretching shareholder value and that's what she wants. she's coming through and delivering it to the shareholders. they're more transparent now. youtube is dominating one of the best streaming services and g

and finally, celgene, we got news that it has a new ceo, the president and chief operating officer. is getting promoted. are down.e the shares the company also came out with a forecast for the full year that leaves room for it to miss analysts estimates. mark? mark: julie, let's stick with the health care industry, still ahead on bloomberg television. a company for up $32 billion. details on the megamerger, just ahead. ♪ betty: you are watching, as you just saw there, the european close. i'm betty liu with mark barton. let's get to a huge pharma a deal, shire's acquisition of baxalta. look at the investor reaction. both companies negative, shire down 7%. the combination will make the companies a powerhouse of rare disease treatment. let's bring in drew armstrong. we indicated that this was going to happen, so tell us exactly how this got through. : this has been in talks for months. i think back in the summer shire came out saying it had interest in acquiring baxalta, when it had been out for, i think 30 days? they had a time of cash. and the offer was raised by saw. 2 billion from

. >> celgene, here's the problem, th were ve conservive about venue, theumber on drug, i thinitigatch a ade or too. i'm not ckinamp. thinthis stock couldo to e w s, becau tt oup is under sh prsu. nobody wantst. aller: boo yak. >> thiisnoth >> this another one thas spulive. all the air comes out of i i am a believer, but understand these stks arell part of that health care complex tt suddly everyone has so much. hn in flora. >> caller: hi, j.p. boyah. >> my stk cbm. the question i is it oversold? >> again this is an arms dealer for th sciences industry. and no one is -- let's wait until it comes in, wsee if we get boce and then ybe a bottom. t yet. that, ladies and gentlemen is the conclusion of "the lightning round." >>> the lightng round onsored by -- the re you move e mowe it has unimicrocsus thcon fres friction bakthcaules... ...reasing bursts of freshness all day. whetr you're mting adeadline.. ...grabbg a te.. ...or headinout for e night. monse, proteion top you moving.degree, won let you laundry can wreak havo launy can wreak havoc on ourotheuining them forever.sweaters stret in

. >> celgene, here's the problem, they were very conservative about revenue, the number one downgrade or too. i'm not backing amp. i think this stock could go to the low 90s, because that group is under such pressure. nobody wants it. keith in florida? >> caller: boo yak. stock opk. >> this is another one that's speculative. all the air comes out of it. i am a believer, but understand these stocks are all part of that health care complex that suddenly everyone hates so much. john in florida. >> caller: hi, j.p. boo-yah. >> my stock is cbm. the question is, is it oversold? >> again this is an arms dealer for the life sciences industry. and no one is -- let's wait until it comes in, we see if we get a bounce and then maybe a bottom. not yet. that, ladies and gentlemen is the conclusion of "the lightning round." sponsored by -- the more you move the more you sweat degree's motionsense technology keeps you fresh with every move. it has unique microcapsules that contain fragrances. friction breaks the capsules... ...releasing bursts of freshness all day. whether you're meeting a deadline..

i urged you to buy perspectives with a rich takeover bid from celgene. right now, i would tell you with the current set of circumstances, i would have been reluctant to recommend the stocks of either companies as they were positioned back then. they had been kicking around for ages. i remember buying some regeneron that talked about cutting edge treatment that could lead to a cure for spinal cord injuries. it didn't pan out. i would be totally gun-shy. same set of circumstances in 2005. i would fear the eye drop, turned out to be one of the great all-time blockbusters that could be a loser, like the spinal cord. regeneron would be way too much. i misjudged the environment. i championed fitbit from the moment it came public. when it got too close, i had the good fortune to say take profits. we compared fitbit to gopro and gopro plummeted and fitbit hung in. with the stock at 30, i interviewed james park and feeling real sure, i said this is going to be a fitbit christmas and garner incredible sales from corporations that might want to cut down their healt

>> well, radius is a speculative stock and you have very solid companies like amgen and celgene getting crushed. you have to expect this one will get crushed more and up more. you have to understand it was pure speculation. everybody is allowed to speculate. you should speculate in one or two positions out of ten but it is a speculative stock and this is what happens. >> brad in new york, brad. >> booyah, cramer. i just want to say thanks for having my pack. >> doing my best, man. what's going on. >> my question was about cig group. at 6 times earnings is this a buy? >> well, it's a financial and the financials are starting to go down because people feeling like interest rates aren't going higher. they're caught in a rock and a hard place. i'm not a buyer of cit here even though it is at the 52 week low. i don't see a lot of reasons why i need to be in it. let's go to corey in massachusetts. >> jim, thank you for having me. i'm in a bio tech with great results and the $800 million market that's flowing 150%. what's your take on sgyp? >> i know that there was -- i saw a downgrade by city

care movers celgene announcing a new ceo. earnings are going to be weaker than analysts estimated. alix: thank you so much. scarlet: let's check in on the bloomberg first word news. the u.s. supreme court hears arguments today in a case that could have a huge impact on the labor movement. at issue, whether public employees can collect fees from workers who choose not to become members. collectyee unions can fees from workers who choose not to become members. unions say they can require workers to pay for the cost of collective bargaining. the mexican attorney general's office says it probably will take at least a year to extradite drug kingpin watching el chapo guzman to the u.s.. -- drug kingpin watching el u.s. guzman to the it depends on how hard the defendants lawyers fight each stage. hours after the arrest, actor sean penn revealed he had secretly interviewed el chapo in northern mexico. that has triggered questions about how the mexican government handled the manhunt. jong-unrean leader kim wants his scientists to build better bombs. he spoke to those responsible for buildin