and i look at gilead stock which is above the 50.rts to show before befow -- >> i just want to interrupt you. >> interrupt everybody. >> you've done it before, you will do it again. that's fine. but i think again i look at a couple of these companies and actually they're being priced as if they're no longer having pricing power or that they will make a terrible trbs. and these are very good balance sheets by the way. >> we could have said that three months ago, four months ago. and the pressure has not abated on this sector until the turn of the calendar. >> there is pressure on the business models and then on also corporations that i think throughout this country have suffered. when i look at u.s. drug companies that actually have to compete with foreign players when u.s. tax reform or u.s. tax corporate structure in this company has been maybe oppressive, maybe it will get a lot better, this makes the world operating for a lot of these guys a much better place. so just forget focusing on the industry. i think u.s. tax reform is ver

so the market cap of gilead is roughly on par with that.hat's why you're saying the assumption the only way this works out is if the government was going to pay for all of those people to get treatment anyway. >> i kind of get that, then what do you do with gileagilead. it sounds like you're moving money from one end to the other. and then you're left with gilead as a nationalized company with apparently no future beyond that. >> if it's put that way it's a little uncomfortable. it's not right. that's not what we proposed. we proposed buying the entire company. gilead's biggest business is hiv. it has a hep c and hiv business. we'd sell that off. $10 billion research pipeline. we'd sell that off. all we want is the most cost efficient way of getting "the help" c p-- the hep c product. >> if you have the biggest customer and the price just simply is what it is, that there should be more room there? >> yeah, but it's not a negotiation. it's offering the shareholders a price that we think they would take. they could vote it down. the governmen

. >> one of your favorite stocks, gilead. are you cheating a bit by going with gilead?>> gilead is a name we hold in our multi cap fund. we think it's a great platform company, one that can weather a storm, biotechs have been under pressure since, you know, september of last year. but with a great management team, one that can be a consolidator which will drive costs out of the healthcare system. so we think that's a good place to be, a safe place if you have to be in healthcare. and it's one of our favorites. >> down 24% in the last year. maybe a little value there if you're right. pet peter, what do you think of the market here and in light of the donald trump press conference? >> to answer your first question, when you listen to a press conference like that, one of our approaches is to take him seriously but not necessarily literally. there's a big difference with that. he might say something surgical, very specific, but in general we're not taking that literally, but we are taking his general narrative seriously. so when he comments on healthcare, for instance, i th

when did i gilead recently, did i the stock.ought the stock and i've been selling calls against my position. volatilities are a very well elevated. >> we need on get generalist investor back. >> that sector had gotten hit when in the last year it was so difficult on make money on obamacare. so the repeal of obamacare, it is not necessarily a terrible thing for them. but there is a lot of uncertainty in this space. i think the sentiment has been so unbelievably bad for so long in the biotech, it wouldn't surprise no see meaningful pop. today was nice but it doesn't take long. >> you have been. >> but out for a long time. and not ready to go back. waiting for a trade. >> still ahead, the commodities king, the call for 2017 and he has four ways to profit from it in the new year. you're watching "fast money." you're watching cnbc. >> yep, that's what happened to bonds last year. but vanguard says the biggest risk still lies ahead. >> don't worry. just keep your hands and feet away from his mouth. >> investors are losing their appeti

talking about gilead will pursue more business development, potentially more merger and acquisition activity, and we could see more potential targets of gilead, perhaps also trade higher as that speculation goes further. today we are taking a look at weight watchers. it looks like it's launching a new opera ad campaign, every time we see a new involvement by oprah winfrey, shares tend to go higher. they are up by 24%. we also tend to see them perform well at the beginning of the year as the dieting season begins. another under the radar mover today, gamco investors increases its stake in the car rental company. i wanted to look at that seasonal affect. this is saeg on the bloomberg, this looks of the past several years and what tends to happen over the trajectory of the year. we see this strong start for weight watchers, then it sort of fades as the year goes on, much like perhaps many of its clients' diets, or many people's diets who make resolutions at the beginning of the year. rounding out a random collection of what's on the move today, natural gas fell sharply yesterday as wel

with the exception of a handful of things like epipen, it gets back to what we talked about with gileadfact of the matter is a lot of these stocks have this priced in and most analysts price it on pure biotech. so they put in a discounts factor. you can't tell me that biopharma stocks don't trade with a discounts factor. >> can they have a bigger discounts today than yesterday? we had the exact same argument yesterday. to me this is a great issue for him because we got all these trade issues. this is america. we do to ourselves. we're not allowed to negotiate. it's ridiculous. walmart, do you think they just pay whatever the supplier says to pay? it's ridiculous. so he has a great issue here and i really think that rye form never should have been in place at the time. it's an easy one for him to get rid of. i think this will overhang this sector for a while. >> and it will take a while to wade through this process. fr >> and what we're seeing is what we've seen throughout. he puts out tweets. he has some statements. but in all honest tu, i look back at all the previous tweets. some of t

. >> caller: i'd like to know about gilead sciences. i purchased it some month ago for over 100. i think 105. now it's back down to 74. should i sell it and take the lose or do you think it will return and go up again? >> i certainly don't want you to sell it and take the lose. it's too inexpensive. they can do a lot of different things to augment value. it's down because people think it's a one-trick pony. i think it's better. hold on to it for at least a bounce of a couple days as i think the biotech has been way over sold. >>> all right. it's a new year but i'm on the same mission to help you find the best stocks and to understand why like some of the winners from 2016 so you can have a prosperous 2017. same old, same old but i like it. much more "mad money" ahead. everyone loves a winner but the losers can teach us things, too. should old acquaintance be forgot or zero to hero? i'll reveal and my take on donald trump's latest twitter tira tirade. what it means for money and the future trade and all your calls ahead in the first lightning round of 2017. so stick with cramer. t

there was a rumor a couple of weeks back or maybe a week ago you were wrestling around in gilead. truth in that? >> no. i don't think i can spell it. >> that's one reason not to be in. carl thanks so much for phoning in. always love to talk to you. >> sure thing and congratulations again. >> thanks so much. carl icahn of icahn enterprises. talked a lot about energy. >> he touched on a couple of things with refiners. refiners, it is border tax control. no one knows what that bothered adjustment tax will look like. that's why guys are staying away from refiners. real money made in service. as long as oil hangs around $50 sul see an increase in rates and drilling that will benefit that group. >> another stake he's got and been very aggressive on is aig. a year ago he was staying break this company up. systematically important financial institution and, therefore, what do you do now in the world? this played right into his hand. i'm not sure that's a company that will have the same kind of regulatory head wind. aig is up 10% since the election. a name he don't push hard on. paulson wa

qvc of gilead will join us to talk about the huge move in biotech stocks this year.e in big trouble. and

when you take a look at the component, one of the biggest gilead had a 52 week low. a new low, nasdaq composite is a new high. >> absolutely. i think, you know, this whole issue of pharma and biotech is a bit of a misnomer. it's the biopharma industry. you characterize that whether you have a four letter signal or three letter signal. in addition to the fact that pharma is where it's growing, smaller companies can grow faster. gilead is more of a large cap company, right, so they're not in the same universe, but the other piece i think that will continue to be quite compelling for investors in health care and specifically in biopharma is mna. mna, the strategies and the targets are not going to be influenced by tax policy but they will be enhanced by it because there will be more capital and better returns from whatever happens. so i think biotech, again, the smaller companies, have been where we've seen the lion's share of deals. >> when you look though at all of these -- everything that's coming out of washington, whether it's donald trump -- president trump himsel

what do you think about gilead? >> you got a downtrodden one all right.ou certainly identified that. i do think they need to do an acquisition. i've been trying to keep people away from this one unless they did something because while they do make a lot of money, they are not growing. you are self-described. you're in it. i'm not going to disagree with you. sam in oklahoma, sam. >> caller: booyah, jim. >> booyah. >> caller: thanks for taking my call. i own some prospect capital. your thoughts on the stock and the dividend long term. >> which one was that? i'm sorry? prospect? prospect, i know it yields high. i do not like companies where i do not know exactly what loans they have made. i think that stock is too dicey for me, and i do regard that high yield as a red flag. not for me. tommy in kentucky, tommy. >> caller: booyah. >> booyah, tommy. >> caller: what do you think about enterprise products? >> nice. almost 6% yield. could go down because of the disappointing kinder morgan numbers, and i would pull the trigg trigger. those guys are very good. they

if gilead finally gets off what we've all talked about, about all that cash, they've got all that cashcredible company. but they're kind of a one trick pony. they've got to expand. they've got to make an acquisition. maybe 2017 is that year. i own that stock because i think they're going to make a nice acquisition this year. >> let's move to an investor who has made a big name for himself by going small. matthew is the ceo and portfolio manager of northern right capital. activist firm that car tets companies with market caps between $100 million and $3 billion. fund was up 16% last year. matthew is live onset once again. nice to see you. how are things? i guess things are good. >> great. we had a great year. we continue to find a ton of idiosyncratic interesting opportunities in the market. >> given the fact you're focusing. the russells ripped. do the good students still exist as they did six months ago? >> absolutely. peer finding a tremendous number of great names to buy. i would make a distinction between the russell and what we're finding. so what i've heard you guys talk about th

it has big names like pfizer, merck, gilead.hink this whole group could get reset up, maybe as much as 8% or 10% this year. i'm calling a bet on all of health care. this is a great way to play it. individual stock pick, duluth holdings. >> warm weather, highly promotional activity. it really fell in the last month 15% on the news. when did you get in? >> we bought it before that. we had about a 20% gain. we've given it back. we're buying again here now, melissa. i think this is a great stock to -- it's a very seasoned, management team that's done a great job growing about 20%. 80% of the business is online. they're doing very well. it's like way to play amazon. >> on the other side of the health care trade, rob is playing etf. you have picked individual stocks. what do you like specifically about pfizer and johnson & johnson? why go the stock specific route than the etf group? >> of all the sectors out of the recent election, probably the one that will be thrown most up in the air as far as volatility will be health care. we don

burgess about the high price of hepatitis c drugs and why we should pay whatever gilead wants to charge because they're cured of hepatitis c maybe down the road. that insurance company doesn't necessarily capture the value from that. because 20 years down the road they're on a different insurance plan or maybe they're on medicare or whatever it is. one thing we can learn from switzerland and reggie hertzling from harvard business school talked about, this, if you have a five-year insurance contract rather than a one-year insurance contract, for example, then an insurer has a lot more ability to say i invest in prevention, pharmaceutical compliance with cardiovascul cardiovascular, metabolic, though kinds of issues. i'm going to yield those savings down the road and that can translate to lower premiums for that enrolle. the more we can move the longer-term relationships between payers and patients and have insurance contracts that reflect that i think that's going to be a significant value driver that a lot of us aren't talking about in the policy world. the third thing i'm going to ment

>> gilead. if they do an acquisition stock, it goes up 20 points. why haven't they done it? i don't know. i would like to find out. j & j. >> hold on a second, guys. update on this news out of ft. lauderdale. we're watching the dow and want to keep an eye on what's happening down there. sue herrera has the latest. >> a shooting incident at ft. lauderdale airport, law enforcement official now confirming to cnbc news 14 people have been shot, 4 of those are dead. the shooter has been taken into custody by airport police or by a police officer who responded to that scene. the shooting occurred in the baggage claim area of terminal two. 13 people shot in total, 4 of those are dead from that incident in the baggage claim area in terminal two. that airport handles about 73,000 passengers per day. they have now reopened, according to the sheriff there. the upper level of the airport. that implies that the lower level is still closed. and i think that's a pretty fair assumption. they had suspended all operations at the airport earlier, but apparently that is now changing. the death

you look at pharma and biotech compared to other industries, they're absolutely extraordinarily, gilead nuts. [laughter] if you rack is the price down unless it is something extreme, companies are not going to spending on r&d. jonathan: more test what about where r&d happens? more the research happening in the united states? and they want to drug prices lower how do you model that? max: they are going to keep in mind the united states already pays for the r&d, the largest market in the world for pharmaceutical. the price difference is a massive. there's leverage negotiating already. isid: a lot of the r&d coming from taxpayers' dollars. does the president let's have a point about policy? would win acting to this legislation paying for prescription drugs, it was wealth transfer. max: the president-elect has a point here and that is why you see democrats like bernie sanders agreeing with him. some of the research is publicly funded and such a huge price of gap. j-roll pricing units are broken. not just the public sector can not negotiate but the private sector, there is no regulation what

isompany like gilead generating huge amounts of cash. plan is for that cash. we will likely learn about that in the next 18 months. erik: we have seen a couple of transactions this morning. been talking about united health buying surgical care. gileadh pressure is under to make a financial deal? to dofeels the pressure an acquisition, but it has always been extremely disciplined about not overpaying companies and buying special cornerstone drugs that stand the test of time. big a year is 2017 going to be for health care m&a? >> when you consider the dynamics, you have 10 to 15 large companies with -- pipelines. all of these companies need to grow. there are a number of innovative .mall companies it will be a year for m&a. erik: thank you. it is great spending time with you. he manages the health sciences fund. back to you. jon: thank you. coming up, our takeaways from the show. equities with a marginal moved to the downside. this is bloomberg. ♪ taking a look at what is moving in equity markets. the s&p pulling back from its record close

disease to treat were patients would have to take injections and a pill, and now thanks largely to gileadnd a couple other players, you can take a pill for 84 days and it 90% of the cases, it is cured trade the drug companies have created a tremendous benefit to society. it's really the players who have jacked up rice is a great just lay for products that don't provide value -- prices for products that don't provide value. vonnie: what are you hoping to have happen? what are you doing? course,e staying the and we've had great skepticism on some of the companies that have increased prices dramatically. matter what happens, i don't think the insurers are going to reimburse $1000 a month for valeant, the antidepressant, when there are generics available for $30 a month. vonnie: you are short valeant? >> yes. we have other companies like therapeutics. therapeutics. it has not jacked prices significantly. it has a good balance sheet, great cash flow. we are sticking with therapeuti. it has not jacked prices significantly. it has a good balance sheet, great cash flow. we are sticking with that,