larry merlo, president and ceo of cvs health.his is a value stock with great growth stick with cramer. man: how can i deliver superior long-term results? it begins with a distinctive approach to managing money. that for over 85 years has focused on keeping confidence up when markets are down. an approach where portfolio managers work well independently. and even better together. who don't just invest, but are personally invested. can i find a proven approach designed to deliver results? with capital group, i can. talk to your advisor or consultant for investment risks and information. talk to your advisor or consultant that's what happens in golf nothiand in life.ily. i'm very fortunate i can lean on people, and that for me is what teamwork is all about. you can't do everything yourself. you need someone to guide you and help you make those tough decisions, that's morgan stanley. they're industry leaders, but the most important thing is they want to do it the right way. i'm really excited to be part of the morgan stanley team. i'

i think that larry merlo is demonstrating, what you need, because the combination with aetna is startingsome terrific numbers unless you feel we're going toward single payer. this will prove to be one of the great deals. the numbers they reported this morning overall were a big guide up but more importantly, there is a belief that he can do the $7 now, there was a cast doubt that he could earn $7 larry merlo. so it goes this time in the wilderness now we hear it can make the $7 so people are trying to figure out how much do you pay for $7 of earnings power. i think the answer could be, if you have a clean story like this, you can put a 12 multiple on it. it is still not that high at a 12 multiple. the balance sheet, they're delevering larry has done a remarkable job in a very challenging industry so i think this can go higher and it is still -- yield is 3%. >> the benefit manager up 6%. >> a shocker they were above estimates. i'm glad you mentioned that. that would have been another area i interviewed him at midtown, i said, are we going to get another -- this was all on tv. are we going

to diversify from and it is still doing better than what -- turned out to be a good deal merlot, larry merloto a healthcare company you're going to load up walgreens against amazon right in the death star's purview and there is no force field. >> i think you're kind of asking, others are, what is the strategy >> nobody knows. >> there you go. so now placina would like to take the company private, maybe. i haven't spoken to him specifically about that. they had partnered, boots alliance, which he ran, partnered with kkr in the past but that deal was not in the green until they did the walgreens deal that sort of took kkr from what had not been a particularly good investment to a better one so, you know, you have a lot of questions here >> more questions than answers >> doesn't add up to me. >> i think xerox has a better chance >> that's saying something for him. >> yeah. >> let's get an update on alibaba. >> the numbers behind me, that gross merchandising figure continues to tick up now, standing above $36 billion the day got off to a rapid start, about 22 hours ago, in the first hour alone,

. >> exclusive interview on "mad money" with cvs ceo larry merlo. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ don't gett sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you. the amount of student loan debt i have, i'm embarrassed to even say. we just decided we didn't want debt any longer. ♪ i didn't realize how easy investing could be. i'm picking companies that i believe in. ♪ i think sofi money is amazing. ♪ thank you sofi. sofi thank you, we love you. ♪ >>> what we got, make sure you join us tomorrow "squawk on the street" is next ♪ 0 to 60 in 3.5 ♪ ♪ you got the speed now shut up and drive ♪ >>> good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. futures mildly positive as stocks search for catalyst you got china trade, election day results and now some reports of strategic m&a get morgue attentimore attention. ten year 1.