Trump Entertainment Resorts Inc (NASDAQ: TRMP), Donald Trump's casino company, this morning said that following a three-month search, it would conclude its strategic review. Although it has held talks since March with groups of investors that included former Trump Taj Mahal manager Dennis Gomes and Boyd Gaming Corporation (NYSE: BYD), the company said the offers it has received "weren't likely to lead to a transaction."

It seems a little strange that Trump Entertainment couldn't find a buyer, particularly because the market for casinos and their assets is hot. Recent examples of casino sector activity include the in-process $17B acquisition of Harrah's Entertainment Inc (NYSE: HET) and the announced $6.1B acquisition of casino and racetrack operator Penn National Gaming Inc (NASDAQ: PENN) by Fortress Investment Group LLC (NYSE: FIG), a U.S. hedge fund and private-equity firm.

What gives? Why hasn't Trump found a buyer? Sources have speculated that its casinos, located in Atlantic City, NJ, have been struggling in comparisons to Las Vegas "entertainment destinations," a partial smoking ban and competition from new gaming venues in Pennsylvania and New York. Additionally, the announcement that the company would end its efforts to sell comes weeks after CEO James Perry said he would retire and, effective yesterday, would be replaced by COO Mark Juliano.

Trump's Atlantic City casinos are still working on a $250M project to update its gaming floors and add new restaurants, although it hasn't seemed to help. The company posted losses in earnings per share loss and revenue when it reported Q1 results in May. The Trump Taj Mahal Casino Resort, its largest casino, with 786 rooms, is set to open next summer.

The casino company said that while it was ending the initiative to sell the company, it would continue to review other strategic alternatives, including a cost cutting effort. The company laid off Chief Information Officer Virginia McDowell and executive vice president of design and construction, Paul Keller. It doesn't plan to fill these positions.

Trump shares fell nearly 18% this morning.

There is no holiday break for the rumor mill as word of many a company's activity is bantered about.



BUILD-A-BEAR WORKSHOP INC (NYSE: BBW)

As the stock shot up 14% the other day, it was revealed that the warm and fuzzy big bear hired Lehman Brothers to "explore strategic alternatives." Some analysts think an LBO is what will happen, and range the valuation at from $34 to $36. Very recently the company reduced its second quarter per share profit expectations to 7 cents to 10 cents, down from 15 cents to 19 cents, because of slow sales at stores that have been opened for at least a year. Here's a bear to be bullish on.


COUNTRYWIDE FINANCIAL CORPORATION (NYSE: CFC)

It's troubled times for the nation's largest mortgage lender. Earlier in the week the shares began to fall when it was revealed that they may be a part of a government investigation into subprime loans. It certainly doesn't help that three former company executives pleaded guilty to conducting insider trading in shares of Countrywide. The heat is on.


THE STEAK N SHAKE COMPANY (NYSE: SNS)

Two Texas investment groups, HBK Investments and Lone Star Funds, who between them own about 9.5% of the company, are said to be interested in digesting the whole dang thing. The 490 restaurant chain that has operations in 20 states just saw their most recent quarterly profit drop 30% from the previous year, as same store sales fell 4.7%. Gentlemen that they are though, they'll only pursue the sizzle if the board cooks it up with them.



STILL FLYING AROUND


WENDY'S INTERNATIONAL INC (NYSE: WEN)

They say they may want to sell the company, and the latest firm to gobble up shares is Tudor Investment, purchasing a 6.1% stake.


TD AMERITRADE HOLDING CORPORATION (NASDAQ: AMTD)

Jana Partners and S.A.C. Capital Advisors, who have about an 8.4% combined ownership of AMTD, are keeping the pressure on for the firm to partner up with another brokerage firm, and have now formalized their demands.



BUZZ


DJO INCORPORATED (NYSE: DJO): MMI Investments purchased 9.4% of the company's shares. When they buy in, they usually see the company acquired...Pride International Inc (NYSE: PDE): Spin off of foreign assets, or a possible takeover, has attracted interest...Legg Mason Inc (NYSE: LM): Pershing Square Capital, whose activist leader William Ackman has tried to push around McDonald's Corporation (NYSE: MCD) and Wendy's, has taken a 1.5% share of the company.

Arena Pharma (NYSE: ARNA) skewed option implied volatility suggests risk into Autumn review. ARNA, a clinical stage biopharmaceutical company focusing on G protein-coupled receptors (GPCRs), closed at $14.32. ARNA's Lorcaserin, a treatment for obesity, has a Date Safety Monitoring Board (DSMB) review in the autumn of 2007. Bank of America started coverage of ARNA with a Neutral rating and a $16 price target on 5/24. BAMO say's "we expect a positive DSMB review, which could provide significant short-term gains in the stock in late 2007." ARNA June option implied volatility is at 44, October at 90 and January is at 66 according to Track Data, suggesting larger risk this autumn.

United Rentals (NYSE: URI) volatility Flat as URI explores strategic alternatives. URI, the largest equipment rental company in the world, closed at $32.85. URI announced on 4/10/07 that it is exploring strategic alternatives. URI June option implied volatility of 33 is near its 26-week average according to Track Data, suggesting flat risk.

Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

Pogo Producing Co. (NASDAQ: PPP) volatility and share price spike on strategic alternatives.

• PPP is engaged in oil and gas exploration, development, acquisition and production activities.
  
• PPP announced in its earnings release on 4/24 "that its strategic alternatives process, which includes the possible sale or merger of PPP, the sale of its Canadian or other significant assets, and changes to the company's business plan, is ongoing."
  
• PPP is recently up $3.92 to $52.47. PPP call option volume of 2,746 contracts compares to put volume of 1,090 contracts. PPP May option implied volatility of 40 is above its 26-week average of 30 according to Track Data, suggesting larger price risks.

Armor Holdings (NYSE: AH) implied volatility suggests Flat risk as AH at record High

• AH, a manufacturer of tactical wheeled vehicles, has a market cap $2.5 billion with long-term debt of $419 million.
  
• AH reported 2006 annual revenue of $2.3 billion. AH is recently up $1.31 to $73.39.
  
• AH overall option implied volatility of 29 is near its 26-week average according to Track Data, suggesting non-directional risk.

Option volume leaders today are: Symantec Corp. (NASDAQ: SYMC), Cisco Systems, Inc. (NASDAQ: CSCO), Dendreon Corp. (NASDAQ: DNDN) and IBM (NYSE: IBM).

Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

Alltel (NYSE: AT) volatility is Elevated as arbitrageurs wait for strategic alternatives.

• AT, a customer focused communications company with operations in 36 states, has a market cap of $21 billion with long term debt of $2.7 billion.
  
• AT is reviewing its strategic alternatives. Robert Baird says: "We believe that in an acquisition scenario that AT could fetch closer to $70 per share. However, aside from M&A potential, we believe the shares are currently trading near fair value."
  
• AT May option implied volatility of 28 is above its 26-week average of 22 according to Track Data, suggesting larger near-term price risks.

International Securities Exchange (NYSE: ISE) volatility collapses. The company is in advanced talks.

• ISE is recently up $19.08 to $64.81.
  
• The Deutsche Boerse confirmed it is in talks to buy ISE. The ISE confirmed it is in advanced talks to sell itself.
  
• ISE May at the money option implied volatility of 18 is below a level of 34 from last week and below its 26-week average of 41 according to Track Data, suggesting decreasing risk.

Option volume leaders today are: Apple Inc. (NASDAQ: AAPL), Amazon (NASDAQ: AMZN) and Dendreon (NASDAQ: DNDN).

Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.