Trump casinos file for bankruptcy a third time
By WAYNE PARRY " 3 hours ago
ATLANTIC CITY, N.J. (AP) " The three Atlantic City casinos once run by Donald Trump filed for Chapter 11 bankruptcy protection on Tuesday " for the third time.
Trump Entertainment Resorts made the filing in U.S. Bankruptcy Court in Camden, N.J., four days after the real estate mogul whose name remains on the company and its three seaside gambling resorts resigned as chairman of its board.
Trump was frustrated that bond holders and their allies on the board rebuffed his offer to buy the company and take it private.
"Other than the fact that it has my name on it " which I'm not thrilled about " I have nothing to do with the company," Trump told The Associated Press Tuesday.
He acknowledged being sad over the end of a venture that was so publicly and relentlessly associated with his name and image. Yet he said the company "represents substantially less than 1 percent of my net worth, and has for some time."
"If I can't manage something, it's not for me," said Trump, who still holds 28 percent of the company's stock.
If the economy takes down AC I would consider it a positive result.
How can any casino go bankrupt except through mismanagement? The odds are all on the side of the house -- the house can't lose. That's a mathematical certainty. If a gambling joint finds itself in the red, that means they're not managing their income properly.
Casinos Can't Avoid Falling Chips
By Robert Steyer
February 4, 2009 | Comments (1)
You know the casino industry is in trouble when relatively few equity analysts tout "buying opportunities" for stocks that have been crushed.
Share-price declines of 50% or more during the past 12 months are the rule, rather than the exception, for prominent casino operators. And there's little hope that the industry will stabilize -- let alone turn around -- until late this year or early next year.
Gambling's biggest names, including MGM Mirage (NYSE: MGM), Las Vegas Sands (NYSE: LVS), and Wynn Resorts (Nasdaq: WYNN), are a bust on Wall Street. Hold-plus-sell ratings outnumber buy ratings for each of these companies as well as for most major casino operator stocks, according to data compiled by Thomson Reuters.
Even companies most favored by equity analysts, Penn National Gaming (Nasdaq: PENN) and Pinnacle Entertainment (NYSE: PNK), have suffered sharp stock drops.
As for Trump Entertainment Resorts (Nasdaq: TRMP), if it were a contestant on the TV show The Apprentice, it would have been fired before the opening credits had concluded. The stock trades for less than a pack of chewing gum.