Transcripts For CNBC Squawk On The Street 20160321 : vimarsa

CNBC Squawk On The Street March 21, 2016

Starwood. Well talk to marriotts ceo, arnie sorensen. The president in cuba raises questions about Economic Opportunity there. And were hours away from apples highly anticipated event. Well look at what to expect. Valeant has been halted for the past half hour or so. As becky pointed out, mike pearson leaving the company. Ackman to the board. Predictable or not, jim . No. But there hasnt been much that is predictable. Theres a mea culpa note from Lehman Brothers taking the price target from 135 to 134. Taking numbers from 10 the reason i point this out is because the numbers are all of the map. No one knows the cash flow, what the company is really do. Ackman joining the board is a sign he cant dump the stock. They couldnt dump the stock. This is a great mystery, carl. When you have a company where you have to idea what it will earn, where its dermatological business is being carved up aggressively by allergan. Ophthalmological being carved up by j j. All this stuff. This is a company, you find yourself asking, these are the kinds of things when youre with a private Family Company and theres rivalry. This is a public company. This is a travesty. Statement from pearson himself in the press release, its been a privilege to lead valeant for the past eight years. While i regret the controversies that have adversely impacted our business over the past several months, i know valiant is a strong and resilient company. Im committed doing everything i can to assure a smooth transition to new leadership. Meg terrell is at hq. What else do we need to know . There is a succession planned for pearson. A lot of things about misstatements in financial reporting, disclosure controls and why the 10k has been delayed. This is tied to potentially triggering defaults on 30 billion worth of debt. This is a quote from pearson, while we regret the circumstances that resulted in the delay of our 10k filing, we are committed to filing before april 29th, 2016. Thats much stronger language than last week. So that is one major thing here in the release. They are also talking about why theyve had these problems with financial reporting. Quoting Improper Conduct of the companys former chief Financial Officer and former corporate controller. Which resulted in the provision of incorrect information. So, a lot of information here in the release, but really the main headline, ackman joining the board, a ceo search at valeant. Well bring you more headlines as we get them. Thank you, meg. We talked last week about what it would mean if they missed that deadline. Where is the audit committee. This is not where are the auditors. This is a serious company. People asked me this week, why does cnbc focus so much on this . The volume, number of shareholders. The fact it was a 260 stock. It was the darling of the drug group. This is not some minor company. Its taking a lot of people down with it. As numbers keep getting sliced. No one knows the numbers. I struggle to recall a noncorrupt it doesnt seem corrupt, it seems a clown show. You think its more inco incoincom inincompetence than intent . I did not like the relationship with philidor. Walgreens gave it a Good Housekeeping seal of approval, thats no more than what they did with theranos. This is more of a soap opera than a company. Were not used to seeing it. I struggle to think about when a publicly traded company would have a ceo, a not ceo, we never knew what was wrong with pearson. The whole thing seems to me unstable. An unstable major american company. The likes of which, if you had an aggressive sec and Justice Department saying we are in here with a monitor, not unlike what they did with bristolmyers when Chris Christie was u. S. Attorney. Chris was a candidate. I did testify on behalf of the government lvernment against an company. But there should be someone on the committee running that audit committee. Its a travesty that the government has not stepped in. The sell side continues to catch up. Barclays today bringing it down to equal weight. Yeah. The analysts frank ly valean is a company that did a lot of business. Made a lot of acquisitions, made a lot of friends doing that. A level of momentum pre the president ial election. They did not want allergan to go to the this was the allergan involved with activists, to go to they had the highest p e but also the most rnd. Its a core business which shot being talked enough about. The ophthalmological business not talked about. The dedermatological these a the core businesses. These other Companies Went in against them. Ackman goes against the ophthalmologists saying use our drug. There are product lines involved here. The product line, throughout all the soap opera, people have forgotten it has real competitors who were really well capitalized, carving this thing up. The lehman guy, so hes using is 11. 70 0 11. 70. Am i supposed to believe the stock is sell two times earnings . I think these earnings are illadvised. Especially given the new 8k filed today. Meg has more on that. Going through this release. We mentioned the company was citing Improper Conduct of the companys former chief Financial Officer. That is Howard Shiller who is on the board of valeant. The company saying in its changes of board of directors that the board requested that Howard Shiller tender his resignation as a director, but mr. Shiller has not done so. Schiller was standing in as interim ceo as pearson was on medical leave. They want him off the board, hes not going. We will continue to dig into this. Some of these headlines are almost surreal. One or more material weaknesses exists in internal control over financial reporting. As if this werent already obvious. Ive seen the s. E. C. In much smaller situations step in and say you are now in charge. Sell the company. The s. E. C. And the Justice Department, i urge them to look at this issue. They have been more active in previous administrations. They say, okay, we need a monitor, Justice Department. We need an outside guy to reason this company, s. E. C. And theyre going to let this thing go with 30 million in debt . Theyll let this saga go on . The government has stepped in in smaller situations. I think the s. E. C. Chairman should be making a call. Valeant becoming the story of the day. Another big story, starwood agreeing to accept marriotts sweetened stock and cash takeover offer after anbang had a bid last week. Stay tuned for an interview with arnie sorensen. You were just talking about starwood. And they didnt feel they were worth much . Yeah. They booted fritz van pashen, he was great executive. Arne sorenson coming from cuba. The fact that marriotts stock is not even down shows me or down just slightly, shows me how much starwood sold out the company. Here is marriott offering 20 more, and the stock isnt down. Shareholders, were done. We want to move on. We are just going to sell you out. You will get 44 of the company. But in reality, the Chinese Communist party looked at this and said im not going to let the capitalists steal the company. Anbang is state controlled. That means the chairman is in there saying lets bid it up more. The Chinese Communists are saying, marriott, we dont think you have game, well take it up. Theyre playing with funny money. Yes. It does create the worlds Biggest Hotel change. Marriott increased the cash component from 2 bucks to 21. Starwood could have negotiated harder im not saying they threw the company to marriott. Hold it. I am. And meanwhile, as we mentioned the president in cuba today, starwood signing a deal to operate some existing hotels in cuba. The first to do so since 1959. Getting that authorization from treasury today. Right. I know a group of students just came down there. Other than the germans, the hotel situation there is quite weak. It would be great. This is the president is leading this trade delegation. Tampa bay and the president. This is the most aggressive trade delegation hes done as president. Its funny. This interplay between communists and capitalists is strange. The communists invite us down to cuba, president goes. These are not exactly economic friends of ours. No, havent been in a long time. Iran, another one. We welcome our socalled enemies with open arms. Im not being political, but boy, do we want to do trade. The president selling abc over the weekend that google will start expanding wifi and broadband access. There is almost no Internet Access down there. You see trade as a powerful Political Force . Its a small country. Iran is a huge country. There could be huge Business Done with iran. Cuba was a place a lot of people went to. It could be a popular tourist destination, but they lack any infrastructure. They dont have any money. But they sure do have great beaches. They do. Well see if more americans take advantage of those. The president got a full day today with the state dinner, baseball game tomorrow. Well see if raul castro takes questions. Does the president throw out the first ball . That will be interesting. I threw out the first ball in a game. Mr. President , you better practice. I practiced to 60 feet. When you bounce it in like tom brady did not good. The president better work on his arm. Its a long way. When we come back, going smaller could be a part of apples strategy today when they launch new products at its event in c cupertino. Stocks are up five weeks in a row. Dow going for seven up days in a row. At mfs investment management, we believe in the power of active management. By debating our research to find the best investments. By looking at global and local insights to benefit from different points of view. And by consistently breaking apart risk to focus on longterm value. We actively manage with expertise and conviction. So you can invest with more certainty. Mfs. Thats the power of active management. Ngo to ziprecruiter. Com and post your job to over one hundred of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. And now you can use zip recruiter for free. Go to ziprecruiter. Com. Were just a few hours away from apples Product Launch event at the companys california headquarters. Apple expected to unveil a smaller version of the iphone, catering to consumers with phones with smaller screens, and this new version of the ipad expected to be introduced this comes a day before a hearing in riverside, california regarding the doj dispute. Im looking at all these different introductions. People are saying should we sell apple . Stock went from 93 to 105. The new apple band strap change. I need a new band. You did a number on that. I did. I treat it like a timex. I think people will be should be focused more. Tim cook please tell the story about service revenue. Those numbers for the quarter could be extraordinary. Just give us a hint. At this point, i think last week swisher described the event as it was Andy Hargreaves as hohum. Were not in the sweet part of the cycle. I always like when you go in hohum. Its always bad when you go with youre seed number one. Theres seed number seven in this. They could go further than we think. The evolution of the fbi dispute. I dont know. I was helping come, they would come to some conclusion that this is a special event. I think hes sensational. I think the world of tim cook. I just keep hoping for compromise. Last week guidance on mobile suggested that the iphone 6 cycle is weaker than we think. That took people by surprise. They didnt lose share, they just shut down production. We knows there a product gap. The thing thats important is the product gap will be filled up by services. 14 of revenue. If they can could get that to 20, that would be good. Im not fretting apple. On to the broader markets. We mentioned stocks aiming for a sixth consecutive week of gains for the First Time Since november. S p joining the dow in positive territory for the year. Within 4 of record highs on the dow and the s p. Why wouldnt you want to ring the register here if you were nervous in february. I come back from the nova victory yesterday. I hit up the website. Whats going on . Valspar, which had a weak quarter, frankly. Lost a lot of business at lowes. Gets the sherwinwilliams bid. I come back and say heres a company underperforming, longterm good. They get a bid. Markit does good analysis, out of nowhere, they get a bid. Marriott, you thought that marriotts stock would be down 35 cents. The stock just undervalued. Oth oracle last week, nobody paid attention. Nike, what happens is when we go back to the micro, the individual companies, i keep seeing companies. Lets watch dover or jw, nordstrom. They got downgraded. A lot of people feel its momentum. In the end, maybe the stocks are undervalued. If the dollar gets weak, you will look back and say why was i selling . All of january was the aberration, not february. That case downgrades of nordstrom and intel today doesnt make sense. The bernstein downgrade is funny. There was a lot of thought that intel would preannounce a bad number. It didnt. Hes saying dont be depressed that intel didnt announce a bad number. Okay, fine. Go ahead, knock yourself out. Report a bad number, maybe the stock goes up. Bernstein does say the risk of a fullyear reset in april. That guy is cheering for intel to not do well. I dont know. Hes like a baylor thing. I wish yale bad luck. Its not the bracketology, my friend. Intel is a good company. Im not calling for an upset surprise, but to continue rooting against intel, i dont know. At a certain point take your foot off the jugular. Maybe he surprises. When we come back, the mad dash, count down to the opening bell. We will talk about the premarket. We have not talked about the western primaries tomorrow, twitters 10th birthday and more. At t helps keep everyone connected. Right now at at t, buy the new Samsung Galaxy s7 and get one free. No matter how you hang out, share every minute of it. Buy one water resistant Samsung Galaxy s7 and get one free. And right now, get up to 650 in credits per line to help you switch to at t. Just about seven minutes to the bell. Lets get to cramers mad dash. Theres a big call by matthew boss, an analyst at jpmorgan. He upgrades nike ahead of the nike report. He downgrades lulu. Why is this so important . Nike has come down from when it reported that terrific quarter. He points out alleged margin pressure may not be there. Lulu, he liked lulu when no one else did, now he feels lulus numbers may be materially higher. This stock has been a rocket ship. I like this call. I, too, am concerned that lulu has gotten too far too fast on maybe the subtle notion that vf corp could make a bid, or that lifestyle yoga is so good. I would do what he says. Buy nike ahead of the quarter. I think you take profits to lulu. How do you look at nike, theyre fighting over the same space, but nike is layered with this 4x plan kblanket. True, but mark parker talked to sara eisen. Yeah. It was a fabulous interview. Mark showed mark parker, one of my favorite ceos, showed a level of confidence. Thats technology giant. I am not taking away from kevin plank. The questions sara asked him, they were like think longterm, were a dominant company. Nike is a dominant company. When you watch the tournaments, you see nike, under armour, and maybe too much notre dame, who i like, but im not concerned about the margin pressure. The technology is so strong. The things theyre doing is so positive. This is a Great American company. Apparel has been a struggle back and forth. The names have rebounded. But j crew finally having a decent quarter. Thats good. Because the bonds traded up. They ticked up a bit. Target had a good apparel quarter. It was overlooked by a lot of what people are concerned about. Walmart, nothing special, but has been one of the best performing stocks of the dow. Did get oversold. Had that good yield. Good Balance Sheet. A lot of people pulling for doug mcmillan. Well get the opening bell and a lot more with jim in a moment. Man, im glad aflac pays cash. Aflac isnt Major Medical enough . No whos gonna help cover the holes in their plans . Aflac like rising copays and deductibles. Aflac or help pay the mortgage . Or child care . Aflaaac and everyday expenses . Aflac learn about one day pay at aflac. Com boat blurlbrlblrlbr . Youre watching cnbcs squawk on the street. The opening bell in about two minutes. What a morning. Valeant remains halted after we get news that mike pearson is stepping down. Bill ackman so the board. Apples event out west. The president in havanahavana. Marriott and starwood finding a way to work together. Which raises the question, i wonder if the chinese will come back again. I think they will. David faber always on the hunt for news seems to indicate that. Maybe hotels are undervalued. I think this air b b has done this to hotels, but theres a supply issue. I was talking to people who came here to the Barclays Center to watch some great games. Air b b, theres an inventory. They have such a shortage. I dont want to count out the hotels. Wyndham putting up great numbers. Marriott chronically undervalued. Starwood the most undervalued of all. Halliburton, the eu stopping the merger there. I think the eu has their own issues, they should stay focused on their issues. And twc could be compelling once the regulators stock has been amazing. I think that it is there is so much excitement on a day where ihs merges with market, Everybody Wins. Theres a lot of Everybody Wins stuff. How about a city call to, to break up city. I think mike corbett is doing an excellent job. Theres a call to break up citi. That would be monumental. I think that citi is doing better than people realize. Theres the opening bell. The s p at the bottom of the screen. At the big board, tmc bonds, highlighting new regulations on fixed income execution. At the nasdaq, pra group, an acquirer and collector of nonperforming loans. When oil was going down, they look like they would have their fill. Oil is not out of the woods. 45 is the price you need to see for com

© 2025 Vimarsana