That debate begins now. Dr. J, at 1 06, is apple a buy or sell . Still a bigger buy than a sell at 106. It rarely does with these announcements. I dont know that theres anything that jon fortt has said thats really that earthshaking about this particular announcement. The big one, of course, is going to be in the fall with the iphone 7. Nonetheless, people that were late to this one instead of buying at 134 bucks a share or 138, still right around 106, 107. I think thats a reasonable do, not quite as good as it was a month ago. Well break away for two seconds for breaking news. To eric chemi regarding fan dual and draft kings. Thats right, scott. Actually an agreement came out just now between the new york Generals Office and draft kings and fan dual where the two companies will not operate in new york state any more. Obviously, this is a big story a year ago. Both companies valued over 1 billion but have seen fees pile up. They decided to make an agreement to not continue fighting for the the next several months. One big push this summer to try to get their games legalized in albany. In the meantime, the attorney Generals Office is saying, we wont fight you for now. Instead of fighting you in may, and the appeals court, well wait until september so you can try to get this legalized. In the meantime, you cant operate these games in the state any more. And new york state was their numberone state across the whole country. 10 of the revenues for both companies. So its a big story. A lot of big investors involved in these two companies and well have to keep watching. We reached out to both companies. Well get their statements soon. Back to you. Eric chemi with the latest on fantasy. Back to the reality of the day. Will apple overdeliver or underwhelm . This isnt the hype. The hype really is going to be about the iphone 7. And thats coming six months from now. The important thing for me today, the average selling price on a Global Smartphone is somewhere between 275 and 300. How are they going to be pricing this se . To answer the question you asked john, if youre looking here over the next 30 days and want to play trader, im not necessarily sure at 106 you want to buy apple. If youre looking at it the right way, as an investor the next six months, you absolutely want to buy apple. Goldman sachs put out a phenomenal report over the outperformance of apple on the launches of the 4, 5 and 6. 22 to six months prior to those launches. So buy into that hype over the next six months. Yes, its a buy. Jon fortt outside apples headquarters in cupertino, california. Jon, you want to entertain the question of what you think is going to happen today . Will apple overdeliver, do you think . No. I dont think apple will overdeliver from an investment perspective. I think thats an opportunity for some people. I think the opportunity here is, if apple comes out with an iphone se thats basically the iphone 5 design with upgraded internals, if it costs around 450 bucks, then a year from now, theres a possibility that those units are going to be on the market, perhaps selling at around 350 bucks. And that gets it closer to that average selling price in emerging markets that you guys were just talking about. Apple doesnt want to necessarily be at an average price. There is still a premium product. If they are able to really capture significant share in india, continue capturing share in china, thats so important for their eco system. I think probably the opportunity for investors here is to be contrarian. Yes, people are likely to be disappointmented today about there being a lack of flash and bang, but perhaps thats an opportunity if you believe that apple is going to be able to drive an ecosystem six months, a year from now. Jon fortt with the latest outside apple hq. John brown, what is today . A nonevent if youre a trader, or an opportunity to either buy or sell the stock . You never know. They could shock everyone. But i think conventional wisdom around these types of events is usually more close to the truth than not. So i would say its a nonevent. I agree with what joe said. About the bigger announcement being later this year. And about the typical run that apple does into that announcement. Thats something worth playing. If youre a little bit more than a swing trader and have more than 36 hours ahead of you. Ive been in the name for years. I dont buy or sell in these events. I always Pay Attention. Ill be excited to see what they come out with. Historically, how does apple trade around such product announcements . Our dierdre is joining us onset for the conversation. Good to see you. Good touz as well. Historically, the weeks around product releases have been surprisingly less than stellar times to buy apple. One week after apple announces a new ipad or iphone, the company itself underperforms a whole bunch of other technology stocks, including its competitors. Take a look at the names that trade better than apple after apple releases. Youve got microsoft, alphabet, intel and sewn, all more likely to trade positive and see better average returns, one week after the new release. Now, if you thought apple anticipation was maybe greater than apple itself, think again. The past week has been a big exception. But the company tends to underperform in the week leading up to the release, as well. Now it may be that it is typically taken a while for the market, and perhaps consumers to figure out what to make of the new product. Because, i think josh you mentioned this, six months after a new iphone or ipad release, apple stock has been up 70 of the time. And returned more than 9 on average, which also, scott, made me wonder, when does when is a good time to get into the stock in terms seasonality. I thought maybe leading up to christmas. Not so. Trades negative 50 of the time so no better than a coin toss. Thanks to you. Jim lebenthal, why not sell the stock today . A lot of reasons. We already it talked about the iphone 7. I think theres room to be surprised by the announcement today. Not the announcement itself. A better opportunity to get in before iphone 7, right . I dont think so. I think youve got a nice uptrend thats developed in the stock here. I think its undervalued. And i think there is room for the smaller iphone to get a lot of uptake in emerging markets. One thing jon fortt mentioned in passing is india. Thats where the real untapped market is. Where the untapped market for apple in general is. They have to have a lower price point to get in there. Obviously a different trend in bureaucracy. Thats the surprise over the next coming months. And tony, sanford bernstein, hardware analyst on the street. Welcome back. My pleasure, jon. What should we take from today, do you think . Look, i history would suggest that news reports are really accurate in advance of product launches. And historically, the preponderance prior to the announcement in the two months following generally, theres apple underperforms. Thats the fact around iphone product announcement. So i dont think were going to be surprised in terms of what we get. I think the only most important question is, what is this se going to be priced at . And my belief is it will not be a new price point. In fact, i think they could raise the price relative to the 5s that its replacing. And so for me, this is not tapping into new geographies as of yet. It might downstream when the price comes down. But this is not tapping into new geographies. This is an attempt to provide another option for people who want the latest technology, want the latest processor. But prefer a smaller size. That fits more conveniently in their front or back pocket. Do you like this you like this stuff today, tony . Does it make you feel good about where you think this company should be going . Look, its a its a because you dont sound it. Im just being frank. No, i mean, look, this is not really i dont think its material to the story. But i dont think its a distraction, either. I mean, apple has a cadence of annual product upgrades. Were going to see that in september. Were getting sort of this bonus upgrade or bonus new phone, but from my perspective, its not really creating a new price point. So its not going to create that elasticity at the low end. I think its an attempt to provide another choice option for consumers in the hope of ensuring that the replacement cycle doesnt elongate. Because there may be there is a portion of people, im sure, who say, very happy with the phone. I really like this size. I dont want a bigger phone. That ultimately will say, okay, well, a refreshed phone thats sleeker and of that at that size, ill go buy that. Tony, its josh brown. Does apple have any momentum at all on the mac book side . Is there something we should worry about here, given the tone of what people are saying about pcs generally . Is it because apple is taking share, or is that a possible danger point for investors going into the next report . I dont think so, josh. You know, the mac is a relatively Small Business for apple, overall. And, you know, thats apple has proven to be a sustained share gainer, and we dont see that changing. So i think the combination of continued share gains and relatively small contribution are not something we should worry about. I do just in terms of nearterm considerations, i am i certainly believe that the stock will pivot on perceptions of the iphone and iphone 7 is the singular issue for the stock. I think the nearterm expectations just for the remainder of this year might be a little high. Consensus is at 9, numbers below the streets. So i probably wait if i was trying to be very tactical about trading. Until after next quarter and see where guidance is. Because if i had to bet, its more likely to come down than go up. Now, that said, if youre longerterm investor, i think you have all articulated very well. There is a product cycle coming. There is doubt about whether iphone can grow. I believe that iphone 7 will grow year over year. And the stock will likely rerate if thats the case in anticipation. Telling it like it is. Tony sack naggy, appreciate the time today. My pleasure. Coming up, valeant ceo mike pearson is on the way out. The stock is surging today. Latest reporting on the story, next. Heres what else is coming up on the Halftime Report. Still ahead, president obama in cuba. What the historic trip means for the island and what companies can benefit. Plus, cashing in your chips. Is it time to bail on intel . Find out why one analyst says the stock is a sell. And whether our traders agree. And Spring Cleaning your portfolio. Clean up everybody clean up the stocks you should kick out of your portfolio as the new season kicks off. Thats all ahead on the Halftime Report. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Here at the Td Ameritrade they work all the time. Sup jj, working hard . Working 24 7 on mobile trader, rated 1 trading app on the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of other competitors do on desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivatives pricing model, honey . Td ameritrade. Man 1 i came as fast as i man 2 this isnt public yet. Man 1 what isnt . Man 2 weve been attacked. Man 1 the network . Man 2 shhhh. Man 1 when did this happen . Man 2 over the last six months. Man 1 how did we miss it . Man 2 we caught it, just not in time. Man 1 who . How . Man 2 not sure, probably offshore, foreign, pros. Man 1 what did they get . Man 2 what didnt they get. Man 1 i need to call mike. Man 2 dont use your phone. Its not just security, its defense. Bae systems. Welcome back to the Halftime Report. Valeant pharmaceuticals rallying after the ceo is stepping down. Our meg terrell has the latest details on this developing story yet again, meg. Yeah, quite the shakeup going on right now. Mike pearson, the search is on for his successor. He will stick around until they name that person. Theyre very actively looking for folks right now. And bill ackman immediately joining the board. And, of course, howard shiller. He really is becoming the story today. Former cfo of valeant. Took over while pearson was on medical leave. He is on the board. The company today accusing him of improper conduct, along with the companys corporate controller. Theyre throwing him under the bus, essentially, right . It has that feel to it today. It certainly does, pointing out the corporate controller and ceo were the reasons for the misstatements. And the tone at valeant and the board saying thats part of the reason that led them into this huge mess here. Shiller, in a statement from his lawyers, saying that that was completely inaccurate. Hes saying at no time did i engage in improper conduct. And saying as such, he declines to resign from the board. So this is kind of the argument thats playing out today. And, of course, what happens next, who is going to be taking over this role as ceo. And what assets are they going to sell . This is the other thing im h e hearing. People talking about taking off. A lot more coming. You had the some reporting i did earlier that this move to replace pearson was not a mutual decision. That there were several board calls. Obviously, as you would expect over the weekend. And that the company, as you sort of allude to here, was concerned about the tone, and decided to oust hepearson. And he was informed that the board was taking that action and they were immediately initiating this ceo search. You know whats fascinating this, he came back. He came back, and they did this call. And then everything went horribly. And now hes getting the boot. And so the timing is interesting. Is there a bull case, guys, at this moment to be made, all joking aside and other nonsense. Is there a bull case to be made for the story right now, bmo puts out a note today that says taking steps in the right direction. And you can go down the list and ill point some things out and we can debate it back and forth. Okay. Answer the question. Is there a bull case . When you say is there a bull case, the target being what, a return to an 80, 90, 100 level. The answer is absolutely no. Is there a bull case that this stock gets to 40 or 50 can it be a double . 60 bucks . It could go to 40, 50, yeah, possibly. But i still dont want to take on that volatility. I dont want to take on that risk. I dont want to play that game. I wouldnt do it on the fundamentals. Ill say that. Youve got to think, this is a people business, right . Youre going to have people who want to sell their products to valeant. Youre going to have distributors who arent going to want to do business. Scientists who dont want to be hired by the company. There is a lot of people in this business. And is i think everybody is going to be scared off from doing business with valeant. The people saying things like taking steps in the right direction are people that had buy recommendations on this stock 200 points higher. And i think you have to understand, jim says the people business. Wall street is also a people business. Youre going to see tushcovering going on over the next three months like you cannot imagine. Theres been a ton of money lost. What if what if you believe, doc, that just by virtue of everything thats happened, the stock is cheap. The person who was viewed by many as being toxic to the situation is now going to be out. Forced out. There was worry about the debt. What if they get the waivers, which seems more likely than not. They have the audited financial statements. They have had the Ad Hoc Committee do a cavity search, if you will, into valeant. What happens if all of those things come back positive . Youre telling me the stock is not a buy at 29 bucks . No, im not im just taking the other side. Im agreeing with my friends here, that there is a lot of hair on this one. And this is not the shallow end of the pool. The model is broken. It doesnt work. But at 28, 29 bucks a share, im saying i think you can take a shot. I dont see a double here, judge. But i do say that the stock could be 40 like that. What i saw last week put it this way. People were talking about valeant and zero in the same sentence over the last couple of weeks. So youre identifying a series of potential positive catalysts that we can recognize, and other in the speculative Community Activist community could recognize, as well. This is a stock where theres more room than just a couple of activists, right . Where are the others stepping forward right now, beyond bill ackman . Why are not other activists you have a stock down 60 . Why isnt the activist community clamoring to get involved here . I think there is a lack of clarity where the company is going to go. Now i think the question becomes who is the new ceo. Somebody very credible in the drug industry who knows how to bring something back, run a drug company, maybe a traditional drug company. Maybe you dont get the same return, but they do have real businesses. Laura bush and home is a real business. But they overpaid for them drastically. Why come in now, why not wait for the inevitable writeoffs. You dont think the stock has bottomed at 29 bucks. This thing could go up 15 points in the next half hour, given the amount of Short Interest here and how much volume is turning over. In the very, very short term, there is no reason for anyone to be high conviction. It could get cut in half again or double. What im saying, as an investor, what is the rush . If you missed the bottom in this thing heres the rush. You have time. Since josh asked, heres the rush. Kinder morgan. If you were one of the folks who were throwing up your hands and just saying, im done with this stock. When its is it 12 earlier this year, its 1 n8 now. If you wait ill give you counter example for that. I can give you one for every one you can criteria. Kinder morgan and chesapeake have infrastructure. Oil and gas assets. Bausch lomb . People are not going to buy that fluid for their eyes that they charge a gazillion times more than a gallon of gas . Its not about the difference in businesses. Its the death march led around all those businesses over the last couple months. And now maybe theyve not only kitchen synced it with valeant, its the stove, its the refrigerator. Youre not buying the drugs if youre a buyer of the stock. Lets be clear. Youre not buying any jubileea or specific drugs. What youre buying is the methodology, mckenzie idea, lets get rid of necessary costs, raise prices and run this thing like a private equity firm. 260 to 20. Let me finish the thought though. If youre saying, okay, i can accept the fact that the wizard is gone and this is not going to be a hedge fund pharmaceutical and i want to buy it for the asset