Trump argues that giving him control of the company is the best move, in part because his name is such a big draw. Icahn counters that the main disadvantage to losing the Trump name would be the cost of changing the signs.

Burn!

Continue reading Is Donald Trump's Brand Still Worth Anything?

Is Donald Trump's Brand Still Worth Anything? originally appeared on BloggingStocks on Fri, 26 Feb 2010 17:30:00 EST. Please see our terms for use of feeds.

Continue reading MGM Mirage (MGM) bets big in Atlantic City

MGM Mirage (MGM) bets big in Atlantic City originally appeared on BloggingStocks on Wed, 10 Oct 2007 10:16:00 EST. Please see our terms for use of feeds.

The Donald still stuck with his casinos originally appeared on BloggingStocks on Wed, 27 Jun 2007 16:20:00 EST. Please see our terms for use of feeds.

Continue reading Should casinos be judged for reaching out to Asians?

Should casinos be judged for reaching out to Asians? originally appeared on BloggingStocks on Wed, 13 Jun 2007 17:40:00 EST. Please see our terms for use of feeds.

Trump Entertainment Resorts (NASDAQ: TRMP) shares soared more than 20% on Friday after the company disclosed that "The Strategic Committee has recently received preliminary and conditional indications of interest from parties proposing to acquire the Company. There can be no assurance that any of these indications of interest will result in a sale of the Company or any other transactions."

Given that the company had already announced that it was for sale and already jumped on that news, the shares may have gotten ahead of themselves today. But the storyline that interests me is this: If the casinos are sold, is it possible that the Trump name will be removed?

With the ratings of The Apprentice continuing to show weakness in the latest season (even after a move to L.A. to spice things up), I would argue that the Trump name may be suffering from overexposure. His huge ego may have finally turned off the public, and his book with Robert Kiyosaki is probably the worst thing I've ever read.

I just wonder whether the Trump name has much value anymore. There's no question that everyone knows it, but what is the average person's impression of Trump?

Trump Resorts receives a buyout offer? originally appeared on BloggingStocks on Fri, 18 May 2007 20:20:00 EST. Please see our terms for use of feeds.

While Donald Trump may consider himself himself a mogul, I'll remember him for something else: He has actually found a way to lose an enormous amount of money owning casinos.

Trump's Atlantic City casinos, owned by Trump Holdings (NASDAQ: TRMP) have been flailing for years. Crippled by a massive debt load of about 1.4 billion dollars, the company hasn't been profitable in more than five years (excluding extraordinary items). In 2004, the company filed for bankruptcy to in order to restructure its debt, and Trump stepped aside as CEO. But will the departure of the ultimate blowhard CEO, and the introduction of professional management, be enough to save Trump's casinos?

Continue reading Trump trumped in Atlantic City -- Can he recover?

Trump trumped in Atlantic City -- Can he recover? originally appeared on BloggingStocks on Thu, 12 Apr 2007 18:35:00 EST. Please see our terms for use of feeds.

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Trump Entertainment Resorts Inc. (NASDAQ:TRMP), the casino company fronted by the helmet-haired star of "The Apprentice," is up for sale.

Of course, those are not the words the company used. Reuters uses the diplomatic language of "weigh strategic options for financing, capital structure and other alternatives." Usually, the "alternatives" companies weigh involve avoiding getting its butt kicked by its competitors.

Trump hasn't been the King of Atlantic City for a long time. When I get the urge to gamble (my house is about 60 miles or so from Atlantic City), I hit the Borgota, or the Tropicana, anywhere but a Trump property which just aren't as nice.

Adding to the Donald's woes is the recent start of gambling in nearby Pennsylvania. Gamblers from the Philadelphia area don't have to travel far to play the slots and Atlantic City casinos now have to dole out more comps to keep their patrons happy.

Trump may sell all of its casinos or refinance them, according to media reports. My bet is that the banks aren't going to be interested in helping Trump the company out if Trump the businessman is involved at all. Trump may wind up being a brand mascot like Colonel Sanders. Still, I bet that larger casino operators will be interested in some if not all of Trump's properties that are being shopped by Merrill Lynch & Co. (NYSE:MER)

This places NBC in a bind. "The Apprentice" is predicated on the position that Trump is a huge sauces. Maybe the season of the program will feature the suck-ups -- I mean apprentices -- having a garage sale on the Atlantic City boardwalk. I would even tune in to watch.

Donald Trump's casinos are for sale originally appeared on BloggingStocks on Sun, 11 Mar 2007 10:30:00 EST. Please see our terms for use of feeds.

Private equity, in my opinion, is the juiciest of all the financial sectors. While venture capital is more baldly a gamble -- after all, something like 10% of investments actually pay out handsomely -- private equity is a quieter, stuffier, much, much larger gamble. It makes my blood gurgle with excitement.

Private equity firms have been gambling big, of late, and, according to the Wall Street Journal [subscription required] at this wee hour of the morning, they might do even more so by orchestrating an LBO of Harrah's Entertainment, Inc. (NYSE:HET). Naturally, the biggie of all private equity gamblers, Texas Pacific Group, is rumored to be involved in the talks to buy out Harrah's, which has a $12.34 billion market value and $10.2 billion in debt. Now there's some leverage.

While this would certainly be the biggest casino company ever bought out by a private equity group, it wouldn't be the first casino company -- Colony Capital, also rumored to be in on discussions, has bought several properties in Atlantic City and Las Vegas -- or the first huge gamble. After all, there's HCA Inc. ($21.3 billion), in my mind (and I was analyst on many a hospital deal in my time in investment banking) a huge hospital management company like HCA is a huge gamble. In hospitals you have two very egocentric, impossible-to-predict, and money-hungry groups pulling your cash flow this way and that: doctors and the U.S. government. Ick.

Continue reading Private equity is so totally a gamble: Harrah's LBO?

Private equity is so totally a gamble: Harrah's LBO? originally appeared on BloggingStocks on Mon, 02 Oct 2006 04:13:00 EST. Please see our terms for use of feeds.