Some wish that we were tougher on Wall Street in 2008. AIG (NYSE: AIG ) shareholders were almost wiped out. AIG bondholders didn't get touched. That was dangerous. Bondholders should have taken a hit, they say.
Others counter that making bondholders take a hit would cause a virtual bank run on the financial system. Indeed, there's good precedent for that after Lehman Brothers went bankrupt.
I asked Joseph Stiglitz, the Nobel prize-winning economist, to reconcile the two opinions. Here's what he had to say (transcript follows).
Morgan Housel: When I think back to 2008, one example I think of is the Reserve Primary Money Market Fund. It owned some Lehman Brothers' debt. Lehman Brothers went bankrupt, and it caused a run on the money market fund, as Reserve Primary broke the book, which instantly overnight caused the corporate credit paper market to freeze up, which had real-world impacts on growth restorers and automakers. So it does seem like 2008 did give us examples of a bank run on debt that had real-world consequences.
Hot Gold Companies To Buy Right Now: CenturyLink Inc.(CTL)
CenturyLink, Inc., together with its subsidiaries, operates as an integrated communications company. The company provides a range of communications services, including voice, Internet, data, and video services in the continental United States. Its services include local exchange and long distance voice telephone services, as well as enhanced voice services, such as call forwarding, caller identification, conference calling, voicemail, selective call ringing, and call waiting; wholesale local network access services; and data services, including high-speed Internet access services, data transmission services over special circuits and private lines, and switched digital television services, as well as special access and private line services. The company also offers fiber transport, competitive local exchange carrier, security monitoring, and other communications, as well as professional and business information services. In addition, it provides other related services, such as leasing, selling, installing, and maintaining customer premise telecommunications equipment and wiring; payphone services; and network database services, as well as participates in the publication of local telephone directories. Further, the company offers printing, direct mail services, and cable television services; and wireless broadband Internet access services and satellite television services. As of December 31, 2010, it operated approximately 6.5 million telephone access lines. CenturyLink, Inc was founded in 1968 and is based in Monroe, Louisiana.
Advisors' Opinion:- [By Selena Maranjian]
Telecom company CenturyLink (NYSE: CTL ) shed 4%, and recently yielded 6.1% (which reflects a dividend cut of about 25% as the company focuses more on share buybacks). The company landed a hefty Pentagon contract in April, with a possible 10-year value of $750 million, and has been moving into promising arenas such as cloud computing (via its purchase of SAVVIS). The company has substantial debt, though, topping $19 billion, but also significant free cash flow, near $3 billion�annually. Its EPS has been rising �in the past few years, but revenue growth is mixed.
Best Paper Stocks To Buy Right Now: Resolute Forest Products Inc (RFP)
Resolute Forest Products Inc., AbitibiBowater Inc., is a global forest products company. The Company�� products include newsprint, commercial printing papers, market pulp and wood products. The Company owns or operates pulp and paper mills and wood products facilities in the United States, Canada and South Korea. On November 7, 2011, it began doing business as Resolute Forest Products. As of December 31, 2011, it owned or operated 18 pulp and paper mills and 23 wood products facilities in the United States, Canada and South Korea. The Company�� segments include newsprint, coated papers, specialty papers, market pulp and wood products. On January 14, 2011, it acquired the noncontrolling interest in Augusta Newsprint Company (ANC). In April 2012, the Company held approximately 48.8% of the outstanding shares of Fibrek Inc. In December 2012, the Company purchased Bowater Mersey Paper Company Limited. oklyn Power Corporation. Advisors' Opinion:- [By Seth Jayson]
There's no foolproof way to know the future for Resolute Forest Products (NYSE: RFP ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.
Best Paper Stocks To Buy Right Now: Weyerhaeuser Company(WY)
Weyerhaeuser Company, a forest products company, grows and harvests trees, builds homes, and manufactures forest products worldwide. It grows and harvests trees for use as lumber, other wood and building products, and pulp and paper. The company manages 6.4 million acres of private commercial forestland; and has long-term licenses on 13.9 million acres of forestland. It also offers timber; minerals, such as rock, sand, and gravel, as well as oil and gas to construction and energy markets; logs; timberland tracts; and seed and seedlings, poles, plywood, and hardwood lumber products. In addition, the company provides structural lumber products for structural framing; engineered lumber products for floor and roof joists, and headers and beams; structural panels for structural sheathing, subflooring, and stair treading for wood products dealers, do-it-yourself retailers, builders, and industrial users. Further, it offers building products comprising cedar, decking, siding, ins ulation, rebar, and engineered lumber connectors. Additionally, the company offers fluff pulp for use in sanitary disposable products; papergrade pulp for printing and writing papers, and tissues; specialty chemical cellulose pulp for use in textiles, absorbent products, specialty packaging, and high-bulking fibers; liquid packaging board converted into containers; and slush and wet lap pulp for manufacturing paper products. It also constructs single-family houses, as well as develops residential lots and land for construction and sale; and master-planned communities with mixed-use property. The company sells its cellulose fibers products through direct sales network, and liquid packaging products directly to carton and food product packaging converters; and wood products through sales organizations and distribution facilities. Weyerhaeuser Company has been elected to be taxed as a real estate investment trust. The company was founded in 1900 and is headquartered in Federal Way, Washington.
Advisors' Opinion:- [By Jim Powell]
Steve Halpern: Finally, as an indirect play on housing, you've been bullish on Weyerhaeuser (WY), a lumber and forest product stock. What's the story behind that?
Best Paper Stocks To Buy Right Now: TriStar Wellness Solutions Inc (TWSI)
TriStar Wellness Solutions, Inc., formerly Biopack Environmental Solutions Inc., incorporated on August 28, 2000, is engaged in developing, marketing and selling, NCP's Beaute de Maman product lines, which is a line of skincare and other products specifically targeted for pregnant women, as well developing the Soft and Smooth Assets. The Company supplied biodegradable food containers and industrial packaging products to multinational corporations, supermarket chains and restaurants located across North America, Europe and Asia. In May 2013, the Company acquired HemCon Medical Technologies Inc.
The Company�� priority direct-to-consumer target markets are focused on women�� health and wound care. The second core product area is directed at the Direct-to-Consumer (DTC) wound care market space. During the year ended December 31, 2012, the Company focused the sales and marketing resources for the Beaute de Maman brand on efficient Internet portals via the brand Website and selected Web-based retailers.
Advisors' Opinion:- [By Peter Graham]
Last Friday, small cap stocks Tristar Wellness Solutions Inc (OTCMKTS: TWSI) jumped 14.94% while Hybrid Coating Technologies (OTCBB: HCTI) and Bulova Technologies Group, Inc (OTCMKTS: BTGI) sank 23.53% and 13.04%, respectively. It should be mentioned that only one of these small cap stocks appears to be the subject of paid promotions or investor relations type activities. So what will these three small cap stocks do for investors this week? Here is a quick reality check to help you decide on a trading or investing strategy:
No comments:
Post a Comment