and this one is all about valeant. it's actually called valeants business model.he first includes people from the patient and hospital community. and the second panel is the one that has ackman, pearson and schiller on it. >> as we see, the hearing is under way. the first panel there is testifying, being questioned by the members of the special committee on ageing there. and as soon as the second panel gets under way, we'll take you live there. >> and, meg, for now. meg terrell, we'll see more of, of course, hopefully next hour. >>> time for a cnbc news update with sue herera. >> hi. here's what's happening, presidential hopeful donald trump giving a rare formal speech on foreign policy. the republican front-runner criticizing the current white house policy. >> it's time to shake the rust off of america's foreign policy. our foreign policy is a complete and total disaster. no vision. no purpose. no direction. no strategy. >> trump's sweeping the northeastern primaries last night and now holds 77% of the delegates needs for the gop nomination. >>> a trust company w

affected patients, and valeant's reputation.e seriously the responsibility that comes with my role, and want them to implement the best actresses with respect to drug pricing and maintaining their social contract with the patients and doctors they serve. thank you for having me today, i will be happy to answer your questions. a thank you, we will now have seven minute round of questions. mr. pearson, you testified today that you regret pursuing transactions where the central premise was a plan to increase the prices of the medicine. mr. schiller, and your deposition, you said you wish you had opposed the decision to hike the price is so quickly and dollar once. -- and all at once. you said it was too aggressive, and valeant had made mistakes. mr. ackman, in your written testimony, you said the written criticism of valeant's pricing appropriate, and maintain your commitment to ensuring this approach is never repeated. mr. pearson and mr. ackman, in light of your regret that you have expressed, what specific actions are you taking

what has changed measurably of valeant?ngthe house had a in february, there was talk about how valeant would change. this time we are getting a little stronger of a statement from them and also bill ackman, how they are going to make sure this is not a strategy pursued has a goodand ackman number on the board at valeant. to make sure patients are taken into account when drug prices are considered from here on out. the outgoing valeant ceo said the company was too aggressive. i regret pursuing transactions where the -- it was a plan increase in the medicines. this is being billed as a bit of a showdown here. what to expect in terms of what the gentleman will say? beenlot of it has expressing regret. i think what we expect to hear they are as if apologetic as they say they are and if the company does plan to change its way, moving forward, spend -- some of the analysts we talked to, expressed disbelief that this would be more than moving on and keep doing business as usual. see if be looking to there are any strong proposals

they actually named this hearing valeant's business model. it is clearly focusing on valeant.re seeing is it stretching across the industry, into companies with more similar model to valeant much the pricing pressure is felt across the industry. as long as there's any company that's considered a drug company, which valeant is, it's bad for everybody. >> meg, thank you. meg terrell in d.c. at the valeant hearing. >> the most difficult thing about this thing is there's no clarity. we don't really know what valeant is. what do they stand for? it's very confusing right now. we know that there are a couple of companies that are real companies that they acquired. but there are some that we don't know now about it. i've personally been staying out of this thing. it's had incredible volatility. the stock down 60%. still the sell is still on. i'm staying away from it. >> also, think about the companies that these guys bought with their stock as currency. a case where, i mean, you could make an argument that management was really shrewd in being able to use that. and inherent value here

breaking news on valeant. the basic story is they are saying that they have added no items that require restatement and they are in full compliance with the credit packs and senior notes. they say there's no concern of default since they have filed the 10k. they do say that internal controls were not effective. i am watching the headlines role across the terminal now. that is fairly interesting. they do plan to file statements for year and today. -- for year end today. they say there was existence of material weakness. this stuff, and armstrong is more of an expert, is kind of expected i would say. the most interesting story for me is from yesterday that it popped up to millions of dollars. carol: let's bring in armstrong. you're looking at the 10-k, what stands out at you, drew? this andt they filed that there are no major, major red flags. the stuff about internal control, we have known that this has been under significant pressure and that there are weaknesses that they had to restate or they said they woul

can he really turn valeant around. meg?hat's right, joe papa is taking both the chairman and ceo roles at valeant. folks who are basically thinking of valeant of turning itself around is taking this as good news. they still think he has a long way to go, that it really isn't enough to fix the problem. papa has been ceo of perrigo, and ceo at cardinal health. he's definitely been around the industry for a long time. the kind of language that valeant is using about his joining the company is interesting. the current interim chairman saying he's going to foster an ethical culture. all people are hoping it will soothe investors' fears about where valeant is headed. if you look at perrigo stocks, people are disappointed as seeing papa leaving after several disappointing quarters, after rejecting saying that perrigo would be better on its own. now folks are saying that is due to pricing pressures across the pharma industry. a lot of which were brought on by valeant. interesting papa is making this shift from one company to the ot

if it is accurate, it suggests that valeant still has a long ways to go.his indicate about the broader pharmaceutical industry? sen. collins: we have had three hearing so far. i suspect we will wrap up our work in a report. to press fori want legislative changes to prevent this kind of predatory pricing from occurring. theranking member of committee, senator claire mccaskill and i, have proposed a bill that would reform the process that is used by the fda. what we would do is we would fast-track drug applications from generic companies that would compete with these inopoly drugs, and get them a straight incentive in terms of another fast-track voucher as well. we believe that would help use market forces to deal with what is a terrible market failure that is desperately hurting people who need these drugs and hospitals as well. david: there are few investors more prominent than bill ackman. in his opening statement yesterday he laid out his very impressive career in investing. as the here got underway, he said he did not do due diligence when it came to pr

the most interesting thing about valeant, the bonds of valeant, which we bought the bonds in the incomeunds they had a nice rally in the last few weeks. now valeant's debt yield, 8.5, to 9%. the last time the bonds traded here the stock was 55. the equity has not caught up with the rally in the bonds. the company has 30 billion, little more than 30 billion of debt. we have them looking around $7 of free cash flow this year and $9 of free cash flow next year and virtually all of free cash flow we believe will be used to pay down debt. when you have a busted rollup like valeant or like when we like platform specialty, if those businesses they bought are good cash generating business, the cash will be used to pay down debt and as that debt declines, that value accrues to the equity. we think it's -- as we look at it, that it's -- it's worth at least $60 and we can get significantly higher prices depending what happens. >> are you planning to be in this for a few years? but you know, again to move forward, to be anything like a $200 stock again, it seems there would have to be different fac

but valeant's up. and valeant probably should be up, jim, because they have succeeded mr. pearson with somebody who has been in the industry for a very long time. >> yeah, and joe built perrigo and did a great job. >> you used to be a fan of his. >> i was a huge fan. you know a huge fan because they made the knockoffs. they got walgreens, cvs, they had everybody. david, they had everybody. but then cold and flu season not that great, that knocks them down. okay. and also, i mean, this last quarter i think jnj coming back, all i'm saying was not the appropriate time to leave that company. >> the question is why would you? either because, a, you knew things were not going to be easy, which apparently seems to be the case. b, because you're getting so much money even though you are a wealthy man. >> right. but joe should be here right now. he should be in the imax seat right now. >> fund a foundation until forever -- >> joe should be right here in the imax seat. >> he should be. >> defending this. >> so what's the -- our friend spencer, zillow. >> i mean, really. i think you

-- valeant? you off, we've only got a few minutes. >> it's a good company. >> do you like it at 35? >> i think it's a fun company to get into at this price because you're getting good value on your money. liliz: we're down 192 on the dow jones industrials here, and you like google alphabet. thatof course, is a name that has been very, very strong over the past s several years, , but there's news today that the european union may go after it like it went after mort on antitrust issues. you worried about that? >> they're the biggest kid on the block. of course people are going to come after them. there's going to be political reasons why they're going to put antitrust, and they're going to come after those companies. i like alphabet, and i know this is o off the beaten path here, i like them because of all the things besides the search engine -- liz: did you hear, too, that tesla -- speaking of technology companies -- has 325,000 reservations over one week for its new model? >> i know. that's your

in acquiring some 140 companies on behalf of valeant.ll also hear from other people, william ackman, baby buffett and the former cfo, a controversial figure howard shiller. keep in mind, valeant is under incredible pressure, right? they have a lot of debt, and they are in danger of defaulting on their debt. a company in a lot of trouble and serious questions about raising prices on drugs three times and six times the original price. we'll follow it and back in the following hour with details. liz, back to you. liz: thank you so much. watching that story extremely closely, valeant stock has been hammered, certainly hurt bill ackman's performance at pershing square fund. no problem here, up 85 as the bulls are on the run. dow stands at 18,075. the presidential front-runner shifting campaign rhetoric one day after big wins on super tuesday 3. hillary clinton attacking donald trump while trump takes aim at hillary. our political panel up next whether the time is right for the political candidates to start the real race for the white house. m

and -- >> sequoia, how did they end up with 30% of their portfolio in valeant and why the valeant communityticals. >> they clearly like the notion of compounding returns without paying tax. you know, i could never understand why people went to jones borrow and drank kool-aid because somebody suggested they drink the kool-aid. you know -- >> did you look at valeant? >> we have a team that does biotech. we like that area. we like the whole notion of health and wellness and whole notion that we as a country unfortunately getting older except for you, basically we need to spend less because it's too big a piece of our gdp and find ways to do it. can we do it with generics? yes. this motion of pay to delay, the government has to be the traffic cop in the whole free market system. you need a traffic cop occasionally. as a result of that, we want to know these companies and we own several of them. >> but not valeant? >> i think we own 1,000 shares of valeant. >> it was a -- >> that's $30,000. >> you like to see the pain that people are suffering or enjoying. >> be sure to catch kelly's full interv

>> obviously, i can't talk about valeant and my plans with valeant, but i can just say in general thata very good asset, especially the bausch & lomb business, which -- >> which you were chairman as well. >> i was chairman of bausch & lomb, and that's why i went on the board for a short time. that asset is a very good asset, and that's primarily due to the good leadership of brent saunders when he was head of bausch & lomb, because he invested in r&d and valeant has benefited from the compact lens business and the surgical business that's done very well as a result of the previous r&d at bausch & lomb. i think -- and also the otc business businesses, the consumer businesses are very valuable. these brands go on forever, and the vitamin brands have done very well at valeant. i think the next ceo has to come into this company and establish trust and confidence, starting with the consumers. of course, they have now recently done something with the lenders, which is great, but consumers and customers have to start hearing good news about valeant. and then they have to focus on the basics o

in terms of valeant it's r reinforcing whatever pre-conceived feelings they had about valeant.ho were bearish are saying does he really have the right amount of experience? is' turn around guy or a guy who just knows how to do a lot of acquisitions which isn't the right strategy for valeant. people who think this is an inflection point they say this guy has a lot of credibility, can steady the ship. if you look at perrigo shares. they are losing papa as their ceo but warn what will happen with their earnings and people are taking that's a big problem and models its growth going forward. >> just thinking about, you know, if euro receiyou're josept do you do? do you say we'll hang on the assets we have and become a more boring company or does he see value the approach valeant had and will he try to salvage that. how much larger has the drug pricing market turned against them. >> reporter: that's a great point. the fact that one of the things they cited in lowering their guidance was this new pricing environment. it's interesting that the ceo is going to valeant which some could s

valeant shares have been hammered in the past year, down about 84%.ng investigated for drug will be going ceo do testimony,s to giving a deposition to the senate committee happening on april 18. the investigation is in controversy but will miller is showing interest. it is time for a look at some of the biggest business stories in the news right now. carlisle is said to be in serious talks to find -- to buy assets and halliburton according to dow jones citing people familiar with the matter. the businesses may be worth $7 billion. the companies are trying to keep antitrust regulators from the deal. receiving interest from several , oil and natural gas assets, it is selling according to people familiar with the matter. the company includes energy and raging river exploration. the book -- the book has been focused on light oil property, produce 88% of-- liquids. provided into three main packages, and you can see husky up about 2.5%. shareholders voting in protest after the decision to award the ceo a 20% pay increase. company reported a record net loss

meg tarell on valeant.re to tune in on monday when bill ackman is a special guest for an entire hour. i'm sure he'll be asked about valeant and much more. >>> time for a cnbc news update. sue herera? >> here's what's happening. we continue to watch the trump protesters at the california republican convention south of san francisco. riot police are on the scene and many protesters earlier on broke through the barriers. they were trying to get into the convention center. trump was there, had to enter through a back door. as the entrance was blocked. he finished speaking to the republican gop crowd inside. he had to leave the same way he came in. >>> a military investigation has found human error and fatigue played a role in the bombing of the doctors without borders bombing in afghanistan last october. the pentagon says 16 u.s. military personnel have been disciplined for their roles in the bomb bug won't face criminal charges. >>> a new study out of copenhagen finds a link between the chronic inflammatory sk

chairs of valeant falling today.gain the stock is down 80% in a year, and up next, we'll talk to a person who has been holding it and even buying a little bit more. did anything he heard from the company today change his mind? that's next. >>> let's take a look. right now happening in california in the san francisco area, an anti-trump protesters gathering in advance of a speech that he will make within the next couple of hours in a hotel that is, i believe, just out of frame there. our josh lipton is monitoring the situation and will bring us reports if and when anything happens. but, of course, last night there were some outbreaks of pushing and shoving and some violence there. kayla. >> all right. thanks, tyler. checking on commodities, gold hitting a 15 month high. getting near 1300 bucks an ounce. we'll ask the trading nation team if now is the time to get in. we're also watching oil. these final trades crossing in a couple of minutes. much of the commodities complex being move bid the weaker dollar. we'll give

do we have a stock chart of valeant? up a smidgen, 64 cents.s of now, there has not been, aside from a lot of smoke and maybe some ethically challenged business practices, where is the illegality, is this a $30 stock if you cannot prove it to be doing something illegal? that's an interesting play. i'm just saying i don't tell people what to do. they have assets, as we reported on the table. forget about what ackman said as the bausch & lomb subsidiary, they can ipo half of it, this company, the question is, and i talked to a lot of hedge funds is not a $30 stock. liz: do you think bill ackman regrets going into valeant? >> he bought it at the top. liz: the top is $210. >> the question is now, is it worth $30? i just heard your last guests talking about paul ryan and the various scenarios. i think it was scott brown, who i love, a good friend of mine talked about a trump-cruz scenario, there is a better chance of jim kramer co-anchoring a show with low dobbs. liz: greta said, yeah, i don't see that. >> that happening than a trump-cruz ticket. pu

the author of the scathing report that claims valeant was built to explode.l street talking, and we'll sit down with the man behind it. much more "fast money" right after this. and with her, a flood of potential patients. a deluge of digital records. x-rays, mris. all on account...of penelope. but with the help of at&t, and a network that scales up and down on-demand, this hospital can be ready. giving them the agility to be flexible & reliable. because no one knows & like at&t. parts a and b and want more coverage, guess what? you could apply for a medicare supplement insurance plan whenever you want. no enrollment window. no waiting to apply. that means now may be a great time to shop for an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. medicare doesn't cover everything. and like all standardized medicare supplement insurance plans, these help cover some of what medicare doesn't pay. so don't wait. call now to request your free decision guide. it could help you find the aarp medicare supplement plan that works for y

valeant has a longng way to go. stock is rocketing today. look at this. it is moving higheby about 19% after bullish comments from activist investor bill ackman during a quarterly conference call. that's the biggest one day jump in a single decade. again, this has been a very rough road. the hedgey holds a 9% stake in the drugmaker and won't let go of it even as the stock k very volatile. charlie gasparino o you were listening to the call, what did it is a? >> producer was listening to the call but briefed me on the entire manner. liz: i need that. what were you doing? brushing your teeth? getting a smoothie. >> that's why we pay this kid. i'm talking to source buanyway -- and he's very goodbrian schwartz, have you met him? liz: i haven't. co on down. >> we should point out, 19% up, almost8%8%, re's something teresting they find fascinating about ackman. the market still has a lot of beli in him, in his s abilies, and he's had a rough year, loy year last year, a teible year this year, down 20% so f this year. he's had very latile ups and dos, made great c

we have valeant halted for news pending. >> vault holeant holding?> yeah, but they put out the -- it may be we're going to get news on the board adjustments that have been reported but not confirmed by the company. so we'll keep you posted -- updated on that. >> does keep you going, right? >> it does. >> listen, let's do the valeant share between 12 and 1. oh, i'm sorry, scott. >> we got to hit the bell. we have a lot more coming up. fill you in on valeant on the other side. images, videos, social updates. we call it dark data. 80% is invisible to most businesses. the ibm cloud has tools that can help see dark data and put it to work. hello, my name is watson. working with watson in the ibm cloud, we can help an energy company predict pipeline corrosion. and help a start-up to use social data to predict market trends. now businesses can get more out of their data. that's what the ibm cloud is built for. [ applause ] >>> you're watching cnbc "squawk on the street" opening bell in a few seconds here. at the big board today, the governor of utah, gary h

tracy: valeant is getting a new chairman and ceo.h pop-out is helping value to execute a turnaround after a series of scandals last year. they say he will get to work in early may. scarlet: drew armstrong joins us here in new york. leaving perrys go. is it more for him being up to the task at valeant? drew: when he took over as ceo there in 2006, they had is pretty -- a pretty spectacular run. up until april lester, the shares have gained with a fantastic return during any ceos tenure. but since then, they got embroiled in this really nasty and made a lot of promises to investors about what their earnings were going to be. today, they came out and said they were going to cut their forecast. they were taking charge potentially on a deal that they finished up last year. the stock is down by almost half since that high-speed. clearly the momentum that he gained has not necessarily been maintained over the last 12 months or so. headinglittle bit somewhere where he is going to have a chance to build this thing pretty much from the ground

betty: shares of valeant have been dragged through the mud this year.ne renowned investor thinks the stock is going to make a comeback. we are going to hear from bill miller on his big bet on valeant lettuce head straight to the markets desk. bloombergs ramy looking at the michigan consumer index. is the number coming out right now -- 89.7. this is the lowest since the month of october. the median forecast was higher for this. the prior for march was 91. this the lowest since october. the highest point in the last year was 96.1, setback in june. let us see how this is impacting the market specifically with the s&p right now. right now, we can see it is pretty much flat. just a little bit lower in the past few minutes. we are seeing an extension of that loss to 0.12%. the s&p 500 there and the dow is down. the nasdaq paring losses from 1%.er by 2/10 of a with that said, let us also go ahead and dive into my bloomberg and i want to bring up the which is a check of the s&p's 10 sectors. we can see that three out of the 10 sectors are in positive territory.

. >> i can't rule on a -- >> can't you rule out valeant? >> i'll come close. this is how i'll do it. allergan has always been a growth pharma company. we've always bought growth assets, and so when you look at the profile, the companies you mention, some are growth oriented, others are not. anything that is a growth oriented business with strong fundamental businesses and a good pipeline to sustain that growth is of interest to us. >> okay. $299. now $225, $230. you say, i would not buy back stock. why not buy back the stock because it was much cheaper than when you started the nonsense. >> clearly a great opportunity to buy back stock. unfortunately a decision of our board of directors. we'll look at it. we can't do anything until we close. which will happen the first of the year. once that happens, everything is on the table. >> you're talking about a company that's going to do $8 billion in ebitda, have no debt once you close the deal. clearly an unleveraged balance. to jim's question, i wonder, you ran bausch & lomb or even salix -- i don't think anybody's

one of them is valeant.id there are a handful of folks in consideration for the ceo position to replace mike pearson. he also said the company's 10k, that investors should have full confidence on that when it eventually does come out. he's a big shareholder in howard hughes. he says the south street seaport development for howard hughes has a lot of potential. the shares not moving by that much but getting a little pop today. sun edison looks really ugly parade on the verge of bankruptcy here. stocks plummeted nearly 100% overproduction, over leveraging are to blame -- plummeted. overproduction, over leveraging are to blame. market cap.r is its when we say overlevered, we mean overlevered. scarlet: dan vickers sees opportunities in solar. dan, you are and oil guy. as we talk about how you have written this book "shale boom, shale bust." dan: the solar sector very much is dependent upon oil and gas prices. solar has to be competitive. when oil and gas prices are extended low for a long time, they get less com

where do you stand with valeant? a short in have valeant, but we have cut back considerably.ll have a nominal position in the name, and are still evaluating it. , or didth that tactical something fundamental change for you? >> i think it is a couple of things. one is the shares themselves. as heard by the previous guest, we are getting to the point where you are truly living in -- andding in a default bankruptcy case for the company. as long as they get a sign off on financials, then the stock rate -- rerat the te to where it is today. we saw the possibilities, and made a decision there. the question from investors standpoint, whether longer sure is what is your downside, and where should you look to cover if you are short? if you are investor, where is this potentially an investment case? it is easy to see that the stocks look so beaten down, that if you would instill strong management, relive it the balance sheet, and regain credibility, of course the rerate.ould today, i think there is still too much uncertainty in the name, and therefore, should avoid it. scarlet: too muc

brent saunders took the idea of buying valeant off the table. even down here. but he didn't dismiss the idea of snapping up one of its divisions like the one he used to run, bausch & lomb. that plus a buckup conference call by the cheerleader in chief with the gigantic stake in the company shackle it had bear with some rah rah, worthy more of villanova than valeant. stocks stampeded higher and then it rallied hard again after the bell when the possibility of a debt deal may be in hand. vrx up huge. as i said earlier, though, drug stocks alone can't make this market work. we needed oil which had been in freefall lately. turnaround. how do you turn it around? simply do the same thing it's done since oil was at $26, you find some nameless oil minister from some big middle eastern country and he comes out and says "look, pricing discipline is going to come out april 17, opec meeting. it's a confab taking on mythally positive proportions. worked before, work today. inventories fell more than expected to. and why don't we just go full bore irony here? the justice dep

. >> will valeant become one of those comments?ess i cannot comment on a specific company but keep in mind the attributes of the things we buy are always growth in one ofr r&d assets our seven areas. valeant, i really have to understand their growth profile to be able to answer that question. request and you don't understand it or you don't like it? >> they have not reported, right? it is hard to see what was volume versus price. it has got a lot of good assets in there and a lot of good people. a premier brand in eye care, but i cannot comment specifically on valeant because i have not followed it that closely. >> would you be interested if they were willing to spin out bausch & lomb? it is a premier asset in eye care. different segments of eye care than we do. we are a pharmaceutical eye care company. they have more of a bed toward consumers and contact lenses. but i know the business well and i like the people there and i would have to understand the pipeline and the growth prospects in that business. >> and a you do not want to

i like the group overall. >> and you like valeant overall? >> yes, i like it as a trade.ought it, and got out quicker than stomped out, which is a record for me, and so the momentum could be the 10 not having anything. i don't see the momentum starting to take hold, then frankly, i'd rather be short. >> i think that cramer suggested, too, that he thinks that the worst could be over, and you know, the thing has b bottomed? >> well, i don't know if it is over, because you have a ceo that by the way left the company that got cut in half in stock price that is not a turnaround, guy. >> and no, i know that -- >> he is going to be spending half of the time there. >> and jim is going to be the first to say that he didn't like he how he left, but the prospects of him in the new place given the damage to the stock price at valeant, can it get worse? >> yes, they have monster debtload, so it is a momentum trade, a absolutely. >> yeah? what are you doing? hand signals, are you talking? >> well, we liked it because the 10k was coming out, and then the announcement of the new ceo, and

liz: everybody should read charlie's piece on foxbusiness.com. >> about the valeant.: a great write-through on this. look at the markets. as we head into earnings season, what should you go long and short? the all-important trade next. the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life. . . . . liz: i know it is only april but, hey, we have got the markets slightly nervous at this hour. we had been up 153 points. but another only up 17. spin it forward to trading second half of 2016. what do you have to buy, what do you have to short? we have strategy that will make you money. so says larry shover, great to have you here. quickly on these market, such nervous trading. very jittery this week. >> it has been jittery for a while as you know. this is being run by sentiment. it is not fundamentals. up one day, up one month, down one month. it makes no sense. it is not following fundamentals. liz: regardles

. >>> think things could get worse for valeant? think again.is betting $2.5 million that the stock could fall another 15% in the next month. we go behind the big bet. >>> plus, if you're worried earnings could derail the rally, focus your attention on just five stocks. >>> we start off with the markets. the next guest says stocks are about to surge. he's got the one sector that will lead us higher. let's go to ari with 07 oppenheimer. >> we think the s&p 500 is going to break out to new highs this year. and here's why. and really comes down, we still see comparisons to the market now with that of 2008. 2008 was not a standard bear market. what we saw over the last year was a standard bear market. and here's where we get to that. you know, first if you look back through history, and we did the numbers, bear markets in the 1950s, 1960s, 1980s, 1990s, former secular bowls on average, they dropped 20%, and they lasted eight months from peak to trough. now, from may 2015, to february of this year, we were down 15% -- excuse me. over a nine-month per

we can talk about valeant and how good valeant is doing, trying to buy it, can't, frozen, because ofhe teva deal. a lot of people feel the treasury is looking back and trying to destroy the structure of allergan, not true. but the deal -- >> but they were trying to destroy this deal in particular. that raises a broader question in terms of what treasury is doing and whether that will undermine treasury in the future. by seemingly overstepping the boundaries of what people expected. >> which makes people wonder if that's one reason why we're weaker today. >> i think oil. this. i think there's -- i have to tell you, the disney news. entertainment has been rallying. i find allergan and pfizer thought they were playing by the rules. i hear them move the goalpost, but you really hear this is another deal that the hedge funds were in. allergan was worth so much. it was -- look. it had 10% revenue growth. that's hard to find, right? that's revenue growth. i'm not talking about inversion tax growth. so, it was one of the cheapest stocks. >> yep. >> last time saunders was on i said why you ar

i don't know how valeant is doing so i certainly can't recommend it even for calls. i've got to see the financials before i can make the judgment there. oil still has a grasp on this market, a grip, but any decline it causes gives you more opportunity. on "mad money" tonight just one of facebook's data centers occupies a 307,000 square foot lot, but how can you make money off of the growing number of status updates and instagram posts? i'm taking a close look. >>> then it's april 15 and you know what that means, tax day come et, tonight i'm delving into the titans of tax prep. >>> and ever struggled to figure out a gift for a loved one? i may have found the answer that could make you some money. >>> just in time for my anniversary no less. i suggest that you stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to "mad money" @cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. at mfs investment management, we believe in the

they co-ceo bill ackman, valeant ceo and valeant board member howard to testify on drug pricing practiceso include an apology for the aggressiveness of valeant's rice increases. is jim armstrong and my reaction is, isn't this old news? there was a story about how they would jack up prices dramatically and hillary clinton made statements about it and things like that but the story has moved well past that at this point. >> it has but i think this is part of the ritual process we go through. what will happen in washington just later today, this is like a blockbuster lineup for an oversight hearing. i have never's quite seen something like this. but there is a process of hauling the company executives and board members down, shaming them in front of the public and spending a few hours yelling at them. >> do they swear them in? >> yes. torson was subpoenaed appear. they plan to hold him in contempt of congress if he did not show up. the company is still fighting back and forth with the committee on the house side which ran a parallel investigation a few months ago over some documents. i would

remember, valeant's -- what made valeant a wall street darling, how high was the stock, something like now somewhere around 30, was because it bought companies and was able to extract, buy their drugs and charge more money for those drugs. and do that within the law, apparently. congress might not like it, they may want to call this guy in, you know? he may be getting fired because of the controversy. he may have done some stupid things with the online pharmacy or maybe he didn't manage that very well, i don't know. liz: show a one-year because that's where you see this was a $253 stock, now it's a $31 stock. >> i'm just telling you whatever your opinion of michael pearson, the lawyers tell me that what he did was in, was essentially legal. same thing with martin shkreli, am i saying his name right? liz: shkreli. the hoodie ceo. >> right. same thing with him. you know, he got nailed and he's accused of creating some sort of a ponzi scheme or pyramid scheme within a hedge fund -- liz: he wasn't nailed for the price hike. >> no. that's what i'm saying. what is pearson going to be grilled

valeant has been down 74% in the quarter, so that hurts.arol: it has not been an easy environment for some time. why has it gotten so tricky for many of these investors? kathy: in the beginning of the year, stocks fell. people took off risk, and then we had a huge rebound in march. if you missed putting risk back on, you did not get to make up any of what you had lost. carol: the wrong side of the bat, right? 70% in terms of hedge funds have done ok in march. kathy: yes, that's what the figures said. i think that smaller funds -- it seems the bigger funds have not done well at all. larry robbins had a tough time. a lot of the people that are big into valeant have gotten hurt. carol: certainly some of these bigger funds are well known individuals with a great track record. some of these smaller funds, are they more nimble? kathy: yes, that is definitely some of the issue, especially because of these big guys are very concentrated. carol: what does it mean in terms of money coming out of these funds? we have overall seen money in the fourth q

mike pierson, valeant director howard schiller and the valeant director bill ackerman.e written testimony that came out today, mike pierson acknowledges he'll be leaving the company in a few weeks as joe papa from parago takes over. he said it will be in the next few weeks. he acknowledges mistakes made. the company was too aggressive and i as its leader was too aggressive in pursuing price increases on certain drugs. let me state plainly, it was a mistake to pursue and in hindsight, i recredit pursuing transactions where this was an increase in merchandising medic. he is referring to two heart medicines focused on here. he was questioned for nine hours last week. so very closely watched. >> everybody will be paying close attention to what bl pearson has to say along with bil ackman. thank you so much. see you later. for more on valeant, let's bring in the senior analyst at wells fargo. he initiated the stock with a sell rating in february. david, welcome. >> i mean you obviously been right. this has been a disaster. why should we think that it's not ready for a turn ar

valeant is up on that news.at they have a ceo but they missed on their outlook for earnings, big-time. off by more than one dollar a share. they also missed on first-quarter earnings and on first-quarter sales. so this $17 billion baby goods company is in a little bit of trouble today. and the merger that we talked about earlier -- gannett made an unsolicited bid for the tribune publishing. 815s a deal valued at million dollars, $12.25 a share. the friday over closing prices, they are trading near that but it is a hostile bid. we will bring you more on that throughout "bloomberg ." let's go to vonnie quinn. oops willore u.s. tr head to syria to help fight the islamic state. obama made the announcement after visiting germany. >> a small number of american special operation forces are already on the ground in syria and their expertise has been critical as global forces have driven them out of key areas. given the success, i have approved the deployment of 250 u.s. personnel in syria in special forces to keep u

maybe some of the pressure alleviated for valeant.t is a comfortable current liquidity position. out,ll see when that comes or back to tom's morning must-read. one of the things you said is the global peace. the fed maybe it was extended cycle to 2017 but we are looking at a counter,. -- a downturn. tom: valeant at the remedy has all sorts of challenges, which i'm not expert on, but we know they are having massive placement issues. they cannot get the price they want. there is the disinflation trend that every scripture says may end at some point. david: this is the point people are not -- power overpriced. whether it is in the labor market or production market, price,ou get our over you have not use your capacity fully and you will not get growth and we don't find that almost anywhere. tom: when you look at that in london real estate, the basic idea here is service sector inflation is a similar beast from oil and selected good. jon: here is my single be really interesting. economists have been very wrong about a series of things. wer

we'll see how it plays out. >>> valeant telling michael pooerson to cooperate with a senate probe ong pricing after he missed a deposition. what this latest development means for the future and goldman sachs agreeing to settle a security ploeb for $5 billion today. new york attorney generic schneiderman breaks down settlement on a first on cnbc interview after this. you know, to show the importance of saving for the future. so you're sort of like a spokes person? more of a spokes metaphor. get organized at voya.com. hey kevin. hey, fancy seeing you here. uh, i live right over there actually. you've been to my place. no, i wasn't...oh look, you dropped something. it's your resume with a 20 dollar bill taped to it. that's weird. you want to work for ge too. hahaha, what? well we're always looking for developers who are up for big world changing challenges like making planes, trains and hospitals run better. why don't you check your new watch and tell me what time i should be there. oh, i don't hire people. i'm a developer. i'm gonna need monday off. again, not my call. ♪ ♪ for your ret

that's why valeant has another hard day. >> tesla getting a boost. they introduced their model 3 last night. stick around. >> i'm in line right now for a tesla. this is a simulation you're looking at. i'm in line at a tesla store. >> we'll take a short break. back with more that is the hologram, jim cramer. mfs. that's the power of active management. i am a technological breakthrough. this morning i read over 4000 articles on leukemia. in less than a second. (speaking japanese) i can understand euphemisms, idiosyncrasy and complex metaphors. i know every detail of every public quarterly report in the last 20 years. and i'm just getting warmed up. hello. my name is watson. together we can outthink the limits of what's possible. welcome to the cognitive era. so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird. >>> well, job

mark: let's move on to the drug prices and valeant.an scheduled to testify at a senate hearing today. , pearsonared statement said in part it was a mistake to pursue and in hindsight, i regret pursuing transaction were a central premise was a planned increase in the prices of the medicine. drew armstrong joins us now. are you surprised at all by that statement? surprised that they are apologizing ahead of a senate hearing where they will get yelled at her a few hours. -- for a few hours. they are saying this is not a central part of our business, these are just a few. look back into the first quarter of 2015, the two drugs were their number one and number four products. they've done tons of other price increases. it is a significant part of the business. we have reported that over and over again. i think it will be a bit of a circus today given the line up on the panel. a lot of fun to watch, certainly. betty: are we going to learn anything new at all from this panel? drew: we've got mike peterson, ceooutgoing ceo, the former and forme

valeant says the notice of default does not interfere.hey reiterated they are on schedule to file its 10k on or before april 29. that is your bloomberg business flash. guy: thank you very much. breaking news in the last few minutes out of the u.s. energy sector. coa announcing a it is filing for chapter 11. it wants to reducel company, debt amid the downturn in economies. i want to take you through the bloomberg and show you the short interest in the stock. this is dating back to 2012. ryan chilcote joins us with the details. ryan: 6.3 billion dollars of debt. this is presumably connected to the fact that they may not be able to make that interest payment as early as tomorrow. a lot of news the company has put out over the last 20 minutes. they are saying it will affect the majority of u.s. entities. they are looking at selling assets in new mexico income -- and colorado. the inability to complete the sale of those assets is one of the reasons why i think we are getting this voluntary chapter 11 bankruptcy filing. in addition, companies s

. >>> welcome back, valeant trading higher by about 10%. a board committee review of the company's accounting practices did not find new items that would require additional restatements. remember last month valeant said the panel looking into the ties to the distributor found accounting problems dating back to december of 2014. valeant said it's on track to file a report on or before april 29th. and we did see a little bit of a move higher just about half an hour ago when there were some headlines about its interaction back and forth with its lenders to try and obtain the default waiver. we'll keep you posted. >> a few more concessions. >> twitter as we reported yesterday won the rights to live stream thursday night nfl games. julia borsten looks at the potential to turn around twitter's fortunes. you have to explain what the rights are for because we can't agree. >> they are not exclusive and they are for streaming. twitter and nfl are hoping this streaming video partnership will be a win-win. the nfl did not go with the highest bidder but

and increased competition why some traders say the stock may be in line for a major pullback and valeant having their biggest move in nine days after the company says it's all good and some traders say it will miss a crucial point and later the twitter teaming up with the nfl. is it enough to get investors back on board? our next guest tells us what investors may be missing. back after this. show me movies with romance. show me more like this. show me "previously watched." what's recommended for me. x1 makes it easy to find what you love. call or go online and switch to x1. only with xfinity. >>> welcome back to "fast money." netflix kicking off our top trades tonight, the per fermefect storm for the streaming giant may be brewing. 41% of people polled said they would cancel their netflix subscription if the price increases. couple that with the news out of starz launching their own streaming service in direct competition with netflix, and here's what the ceo of starz had to say. >> if there's cannibalization we certainly don't welcome that, but at the same time we think from an aggregat

drugmaker valeant will have a new ceo. cynthia kunz joins us now with more details.ow about him? guest: he's a very -- a very experienced pharmaceutical executive, so there's no doubt about the sheer amount of experience leaves in the role. but what he's leaving behind is disconcerting and that's what investors are trying to parse out at the moment. launched a very aggressive last year and what happened is he came out of whatimates in terms he could deliver and now they are backing away from his numbers. but there some feeling that you're not going to be able to turn it around like you said and we backed you and now he's walking away from it. note some feeling that he's -- that they are not getting that on his side of the story. he left because he didn't think he could turn around the company or it seems he's turning around the company? the timing is questionable because they are downgrading numbers he gave to say stick with us and we can grow this and the numbers are not panning out. he's taking on a much more troubled company and will hopefully build the credibilit

alix: the contrarian views on valeant as the struggling pharma company deals with $32 billion in debtth david neuhauser, who is shorting a stock, while bill miller calls it a buy. a big by is what it meant to say. [laughter] scarlet:

in particular, valeant was too aggressive, and i, as its leader, was also too aggressive. drugs in our large portfolio of products. in hindsight i regret pursuing transactions where the central premise was based on an increase in price. >> joining us now with more on the valeant hearing and drug prices chair of the aging committee, senator susan collins from maine. senator, it's great to see you. and welcome. >> thank you. >> i wish it was an absolutely free market because that would make no sense if there were competing drugs for what valeant had. that's what -- that's how the marketplace takes care of itself. and i know you know full well we don't want to curb innovation at companies that are truly trying to do the right thing and recoup their investment on maybe diseases that are not that prevalent. that's a quagmire trying to get this regulatory system correct. i am sure you know that. what have you learned in the last couple of days? >> first let me address your comments about it being a free market. we give special privileges to pharmaceutical companies to reward the

the committee is investigating the dramatic price increases pushed by valeant and several other drugmakersglobal news 24 hours a day powered by moore the 150 news bureaus around the world. i am vonnie quinn. thank you. 2:00 p.m. today, the federal reserve will be announcing its latest monetary policy decisions. the fed is widely expected to keep rates on hold with no news conference after the announcement at all eyes will be on what is in the fed statement paired as the blackrock ceo the fednk pointed out, faces a challenge on raising rates multiple time this year. >> there are pockets of inflation especially in -- in the wage area. there is very little inflation. we have seen an increase in from the steep lows. i do not see any evidence at this moment for inflation. i do not think it is an issue for 2016. they have essentially another seven months to determine that path. i would probably be at 25 at best this year. betty: joining us now, the chief market strategist where he helps oversee 120 $5 billion in assets. here,you agree with larry 25 at best? >> that is probably right but to follo

scarlet: drugmaker valeant is getting a new chairman and ceo as the other one leaves to help executeround after a series of scandals last year. is this about leaving, or is he really up to the task? >> pair ago, when you seeking go, he had a perri pretty spectacular run up until april last year. shares gained. that is pretty good for any ceo tenure. but i got embroiled with really nasty takeover fight with myelin , made promises to investors, then they said they would cut their forecast. theyg a charge on a deal finished up last year. and the stock is down by half since reading that august peak. so with a momentum he gained in the first part of his tenure has not been maintained over the last 12 months or so. had on,your fantasy ceo whatyou think -- hat on, you think his first task will be as ceo of valeant? drew: restoring credibility. you need to say, i got this, financial reporting on time, it will be transparent. you will know what is in this business. d.c. and has 18 $37 billion contract to build 12 submarines for the australian navy. has won a $37 billion contract. biggest ine