This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Romney 2012 Buzz Vulnerable Despite Debate

What do Romney's Bain Capital-era investments in companies such as Staples (SPLS) and acquisitions of companies such as Domino's (DPZ) and Sealy (ZZ) say about Romney as a businessman and candidate?

Parker: He's been involved with acquisitions for years through Bain Capital. He made hundreds of millions of dollars while there. When he ran against Sen. Kennedy in 1994, the Kennedy people were able to dig up an acquisition he had made at a paper supply company, Ampad, where there had been extensive layoffs. And one of the things Romney had asserted is that he hadn't been that kind of slash-and-burn operator when, in fact, he had.

This is an industry, this acquisition-and-go-private model, that has grown up since the 1980s and, by and large, revolves around a very simple formula: Buy with borrowed money, load the borrowed money onto the balance sheet of the acquired firm, cut costs -- which usually means cutting labor costs -- and go back public in a few years thereafter and cash out there. It's not clear to me that they are success stories in terms of long-term, healthier companies, but it's become a favored way to make money.

How will that background work to his advantage and what are its potential perils?

Parker: He's going to keep saying that he's been an extremely successful businessman, which is a strategy that Republicans and not a few Democrats have always claimed as a superior life experience to serving in politics. I think the fact that he plays hard and yet there's not a paper trail of overtly felonious behavior means he'll have a story to tell.

When he was running the last time, I thought that he was quite reluctant to reveal his actual net worth, which I thought would have been very interesting to know more about. I think he'll have to be quite clear about where, broadly, a lot of his wealth has come from, and that is going to be very interesting to see.

Do the differing estimates of his fortune that fall between $190 million to $300 million matter?

Parker: It's a rounding error in my life. Do you find that a large number? You'd take the low end if offered, right?

Is business experience necessarily beneficial when seeking the presidency?

Parker: There is no particular history of businessmen making great presidents. We don't have a tradition -- certainly not a 20th and 21st century tradition -- of people who come from business being superlative. I suppose George W. Bush is someone who rode the story of being a businessman. The one prior to him would have been Herbert Hoover. And both left office having handed the country a fairly large financial crisis.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,082.19 +51.98 0.29%
S&P 500 2,090.09 +8.21 0.39%
NASDAQ 4,796.5520 +23.08 0.48%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs