Hour. What in the world is going on here. Thats what serve wondering at this point. You always have to wonder going into today who is shorting valeant because they wondered what else could happen. Today were seeing if it closes at these levels it will be the biggest one day drop ever in its history. Its down more than 40 today so you mention that restatement of its guidance on the call. This is something theyre beefing up their financial reporting. Trying to improve their communications but in their press release the next four quarters is going to be 6. 2 to 6. 6 billion. And then on the Conference Call their cfo said it was going to be 6 billion. Thats how it is written in the slides. Somebody tried to clarify and said there is a typo on our guidance. This is the kind of thing that people cannot believe anymore. Now youre seeing analysts saying we thought it was a communications issue. Maybe they were bad at that. Now we have serious questions. Now the analysts that stuck with it have serious questions about the strength of the business. Some are downgrading it as we speak. To some it seems to be more of the message or the Communications Strategy this company has as the stock is literally falling out of bed as we speak. Its down 45 . Really truly bizarre statements made on the call. People asking what happened with the guidance. Mike pearson saying we lost a quarter. The First Quarter was really bad. A quarter. Were in the First Quarter and hes saying it basically doesnt count. Its not in the guidance. Nobody understand what is is going on. Meg, appreciate it very much on top of the story and will be throughout the day. Welcome to the program. Its good to talk to you, sir, welcome back. Nice to be with you. Thank you for having me. Youre probably happy that you no longer own valeant as we sit here and have this conversation today. What do you make of this situation . Well, i kind of see we have both seen this movie before. The company crew as a result of a roll up strategy. They took high priced stock for a lot of businesses, used a lot of debt and they lost their multiple which meant their equity was not a currency for acquisition and they exercised their debt on options so they couldnt put more debt on the Balance Sheet and the market is striving to figure out what the recurring earnings is and this companys here and we got out sometime ago an were an innocent bystander. Id like to get your opinions as well as we sit here and watch this unfold yet again. It seems like this story has been repeating itself as sort of lee said we have seen this before. And the potential bond defaults. I mean, theres so many different stories that are unfolding right before our very eyes and the uncertainty around this stock. Across the desk we said the uncertainties are so high. Its really difficult to jump into these shares at any point in time. This is a stock that was 263 per share and here we are now trading well below 40, scott, so when you look at the volatilities of the options right now, the stock volume doubled the daily average in the first 30 minutes so there is a huge run for the hills as folks are doing their best and we just dont know enough about the inside workings of the company now. This was never complicated. Sometimes you see these things and you say who could have known. There was more smoke around this thing than any stock i can can remember going back at least 15 years. It was not tough. You had multiple opportunities to get out and what should be well understood a very easy rule of thumb, any time a companys debt load gets to the point where its above its market cap, its equity, as was the case with valeant. They had 30 million in net debt. So as soon as the usually it done happen where debt grows beyond equity. Usually equity shrinks to the point where they owe more money. Theyre better off dead than alive. Once you get to that point you can count on one hand the number of companies that come back from that without major recapitalization. You had a lot of opportunities. You didnt have to understand the ins and outs of the benefit partners, et cetera. You just had to look at this thing and say what am i doing here . Im not a hedge fund manager. I didnt plant a flag. Let me get out. Valeant has been in the cross hairs of politicians this primary season as you know. Its a day that could all but cement the and as the debate intensifies over which candidate is really better for the markets. I want to begin with you on that very question. As you assess the Political Landscape today, what do you see . I dont like what i see. The whole world got turned upside down. Mitt romney was one of the most qualified people to run for president. Now we have mr. Trump telling everybody theyre underestimating his beth and success and the wealth around me worked against him and the wealth of trump is working for him. So go figure it out but we survived the Democratic Convention of 1968 but theres unhappiness in the left and unhappiness in the right and we have to figure out a solution to deal with the problems and we need more to create more Economic Growth and we need more on the education side but well get through this period. The nation is strong. Well survive. And uncertainty is not a plus for the market. You may have to be an investor under one of the two politicians that we just mentioned be it Hillary Clinton or mr. Trump. Who would be better for the stock market over the next period of time if one of those folks becomes the next president of the United States . Well, assuming hilary moved to the center, probably hilary is less risky but my problems with hilary are substantial in all honesty. Forget about the emails and what have you but i noticed as i paid attention to the democratic debates, she and her opponent senator sanders had no problems of constantly criticizing wealthy people. Without regard to how hard these people worked to make their wealth or social good theyre doing with their wealth and for me im looking for a politician that can rise above. That can basically not pander to the socalled 99 trying to tell them theyre suffering because the 1 is abusing them. The fact of the matter is the wealthy people are not creating the problems for the less wealthy. We have had stagnant fiscal policy. The entire burden of dealing with this economic recovery has been placed on the shoulders of the fed. The fed felt what they had to do was get the stock market up to create wealth. They got the stock market up by dropping Interest Rates and as the stock market rose the vast bulk of the benefit went to a select few where as if we pursued physical policy changes, earnings overseas tied to employment and encourage a more probusiness environment we might have had a different outcome so thats my problem with secretary clinton. I say Bernie Sanders i think he is detached from reality and what i mean by that is about a year and a half ago i went to cuba. Theyre hard working good people. And theyre prospering and doing well. They get a quarter of a chicken once a month for their protein ration. It takes them two hours to get from the suburbs to the city because theres no oorg nirgani transportation system. 3. 80 or Something Like that a minute to use the Television Service no satellite service, no newspaper. Same quality people. And one system is communism or socialism call it what you juan and Bernie Sanders is preaching a socialist system. It hasnt worked. We have the best economy in the world. We have plenty of deficiencies. Why isnt trump your man . Its an issue of style basically. People accuse me of being bombastic, its just his style. The way he has insulted people. He has not really advanced any solutions. Its beyond style. I mean, its not substantive. Were going to build a wall. And theyre going to pay for it. You know why im not releasing my taxes. Its ridiculous. He should be releasing his tax return. I dont want him suing me but my guess is he done want to release his tax return because maybe his income is different than people think. His tax rate is a lot different than he wants people to know and basically maybe his Charitable Giving isnt what he ought to give at his level of wealth. I dont know the answer. Who are you. Well, you know, im on the losing side. Im registered independent so i cant vote in the primary in florida but basically i have given money to jeb. He dropped out. I have given money to marco rubio. I have not given money to kasich but i like him as well. Those would be the three guys i would have no problem with but well have to wait and see. Ill be influenced by Vice President ial running mate so we have to wait to see how things play out but, you know, the mocking of a handicap person, the new york sometimes staff, the criticizing of the looks of Carly Fiorina left me cold. His treatment of jeb bush left me cold. He is just a, not my style. Hes obviously a successful guy but not my style. Guys. Hey, its josh brown. So i agree with you that the election is weighing on probably the multiple that were willing to pay for the market. Maybe holding it to where it is. With all the uncertainty given the radical politics on the far left and right. But let me make the case and id love to hear what you say for why maybe the stock market wants to see hilary despite all of her obvious plaus, she is the status quo or as close to it this cycle as were going to get. She has a pretty good chance of winning and a lot of the rhetoric youre hearing is designed to keep he lwarren out the race and she starts talking like a clinton again and any of the other candidates in that she has deep ties with the banks and probably doesnt want to change very much when all is said an done once she gets away from having to fight off warren and sande sanders. A agree with that. Some people think she might not have a chance to run or get elect first degree she is indicted. I think she is a less risky candidate but when obama was elected the hope was he would move to the center but he didnt move to center. She is more opportunistic even when she won in the carolinas she already changed the dialogue. She said we all have to work together. The rich people should pay more in taxes. I believe in a progressive income tax structure but we have to get both sides of the government working together to deal with the problems we have and the problems are substant e substantive. Since i have been in the business ive been taught that gridlock is good for the moment. Do you believe were in a time where the market is maturing . Monetary policy seems to want to hand off now to strong physical policy . What are your thoughts on that. Id like to see the country move ahead. I dont like the idea of gridlock. If were going to go with a leftist agenda id rather have gridlock. A more lightened approach to dealing with the economy but if the choice was a left ward leaning government i would clearly want gridlock but the best news for the stock market is it has not discounted a scenario. They would be 25 or 30 basis points. The government would be 190. Economy would be growing 2 . It will be 15. 5 times earnings. The malt m seems low relative to Interest Rate inflation and i think thats good. Its built into the Market Pricing and thats positive. Little facts. Number one, 50 of the stocks today in the s p 500 now yield more than bonds so what is that telling you . Investors expect Interest Rates to rise or they expect future Economic Growth to be more modest than historical Economic Growth but the fact is its discountying a more conservative set of assumptions is constructive. Generally bull market cycles ended with a hostile fed fed. We had rising Interest Rates before the stock market peaked out and Interest Rate rises in the past and i think since 2007 its about 8 or 900 million taken out of equity funds and thats the behavior at the bottom. You dont see that kind of behavior in the market so a lot of things i look at, most people that forecast economy, the most pessimistic of maybe a one third chance of recession. Were down around 20 or 25 chance which means 75 or 80 probability. You dont have recession and since bear markets are are generally associated with recessions, thats a constructive fact. We dont have the overevaluation and as i said before we dont have a hostile fed and optimistic sentiment and its like i say i have a neutral plus view. My view is 1810 which is the low for the year and i think that we end the year modestly higher than we began and i find a ton of stocks that are cheap. On that note, in fact, we me sneak in a quick commercial break. Well come back and talk more with you about the market and the stocks that you see attractive in the current environment. Just sit tight and well be right back and have some headlines moving on valeant as well. Heres whats coming up on the halftime report. Diamond or dud . Tiffany getting a downgrade today. Has the high end retailer lost all its luster . We debate the call of the day. Plus our exclusive interview with leon cooperman continues. Hell share the names hes buying and selling include a new position in a tech giant. And Morgan Stanley says, the panic over weak iphone demand is overblown. 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I want to call your attention to whats happening with valean stock. Off by about 46 . One of the top shareholders in the company, the Hedge Fund Investor there has issued a press release regarding the valeant stock move today. They talked about in the Conference Call regards of the outlook not being as robust as previously guided. They delayed a regulatory filing. The above factors have caused investors to lose total confidence in the the company to protect and maximize the value of our investments. We continue to believe that the value of our business are worth the current price. We also go on to say we will do our best to keep you promptly informed subject to any limitations and valeant shareholder, one of the top shareholders there, run by bill ackman has issued a statement with regard to its business and dealings with valeant. Theyre going to take a much more proactive role with regard to their investment in valeant pharmaceutical. When he got the seat on the board they didnt expect that two weeks later they would be back sending out press releases talking about the types of events that happened today and how theyre going to deal with it moving forward. He is on and he pledged his support and its what he is thinking today after all of this has occurred but thats an interesting nugget to consider the porn interview kelly did. Lets bring back in Lee Cooperman now who if you recall is with us in mid january in the midst of the markets big swoon. Heres what he said back then. Im holding on because theres a growth scare rather than the bear market. You don believe its a bear market. In fact, if i heard you correctly you said that there were a ton of stocks in the market that you find attractive. Lets talk about some of those. I have new names on my list that are now in the omega portfolio. Why dont you share your best ideas with us, if you would . We can go from a to u. Aig, aig, seven times this years earnings. 6. 5 times next years earnings. Six times this year. 5. 6 times this year. And in the case of air cap i was up to washington d. C. A couple of years ago visiting navient. Very interesting environment. And a lot of stock in the last 15 months. And the company in the low 20s. And books to buy back with the stock this year. Thats 23 of the company. Dont let it escape you but if you buy back 23 of the company at 9 or 10 its trading at 10. 5. And here you have something where the ceo is in the process of buying back between what he has already done and planning to do. 40 or 50 of the company. Trades around 5 times earnings. Yields 6 and sells roughly half of the liquidating value of the company. Microsoft is probably jumping out at people as a new, relatively new move that you made here. I think we bought around six months ago. Maybe a little bit more recently. We liked that. Microsoft is a premium to the market multiple. In line with the market multiple next year but probably twice the market excellent technology. Participating in the cloud. Its very good value as would be google. Google is the probably highest multiple in portfolio with 21 times this years earnings but growing over 20 a year. So next year is down 16 times earnings and for 20 growth rate thats reasonably attractive. So many names i could mention. The airlines, six times earnings. One main, sub prime lender, under seven times this years earnings and we think its under five times next years earnings so we find a lot of things to do and i would argue in a sense that since we have been in a bear market, not for the averages but the avrerage stock thats a lot behind you and not ahead of you. I think the market has given you Good Opportunity but i want to be clear. Theres a lot of issues out there. Profit margins at a record high. You have to be impressed how Bernie Sanders can raise 20 odd billion in a month and average gift is 23 or 24 billion. It te