With this great weather and some improvements that I have been seeing I hope that a restructuring can be accomplished. This would be great for everyone involved. C'mon Don get it done for everyone, including you of course.
To show that you were not wasting your time in letting my attacker have a fitting answer (for which you have my thanks) I did a little research. Check out this article from Fortune, April 3, 2000, "What Does Donald Trump Want" (available at their website). It proves my point and then some, stating (& this is a direct paste) -- "But most disquieting is Trump's tendency to use the casino company as his own personal piggy bank. It's not just the $5 million bonus he drew one year, or the fact that the pilots of his personal 727 are on the casino company's payroll. In 1996 he sold Trump Marina (then called Trump's Castle) to the company for what many shareholders considered too rich a price. Trump insists it was a "good deal." Yet he further angered investors in 1998 when he had the already cash-strapped company lend him $26 million to pay off a personal loan from Donaldson Lufkin & Jenrette."
great posts all. that about sums it up---a balance sheet restructuring essentially converting some of the indebetedness to equity would clean things up along with a reduction in interest rates paid on the debt.
I don't want to get bought out at all and would fight it all the way. Also, prior deals were done at 9x ebitda not cash flow. But cash flow is certainly another way of looking at things. You don't think there is a large reit that would love to buy this thing and then refinance the debt themselves. They would make a fortune. Problem is that you have shareholders who own this from 30plus on down. They would never let a buyout of 5 or 8 happen. The restructuring is key to bondholders and stockholders.
Newsday, on Long Island, NY (a prime market for AC) published a long article this past Sunday about AC. A reporter and her sister visited all 12 AC casinos over a recent weekend. The article was very positive on AC in general and the Trump properties in particular (except for a slight critisim of the Marina, which she described as too tame for her tastes; she and her sister are in their 20's and were looking for a young crowd and excitment). The article was the cover story of the travel section and was also headlined on the front page. It painted a picture of the DJT properties as glamourous and hip.
A lot of people I know are going to AC instead of LV since 9-11. They are also bored with the 2 Indian casinos nearby in Conn.; they have been in business now for years (so the novelty has worn out) and are each out in the boondocks and appeal mainly to an older crowd and locals; I visited one last year and the average age of the gamblers must have been well into the 50's or even 60's; after visiting the casino there is nothing to do. (I know that I was the only one under 50, heck, under 70, on the shuttle bus from my hotel to the casino) Most people who visit AC are attracted by the fact that they can visit several casinos, not just one, see a show, see the famous boardwalk and beach; they also can choose among several dozen restaurants; AC also has attractions like a well-known mall by the ocean, a winery with tours, also nearby golf courses, state parks, beachs. It is within car-driving distance of about 50 million people, is about 90 mins. from Philly, about 2 hours from NYC, and in a locality with about 4 million residents within about a 40 minute drive; it is also near the popular Jersey shore resorts (both north and south of AC), which are popular summer places to visit for millions (from NYC, LI, NJ, the Philly area and Del.). Many people go to the Jersey shore instead of the Hamptoms because they have been priced-out there (and even some parts of the Jersey shore have become trendy with beach front houses selling for half-a-million and up). Also, AC gets conventions, which aren't going to go to an Indian casino. So while 3 casinos scattered upstate (a fairly large area) might hurt AC (especially the one in the Caskills) I do not see it as devastating (although it will be very bad news for the 2 Conn. Indian casinos and perhaps the Niagara Falls, Canada, casinos). Also, the NY papers are full of stories of legal challenges to them and the fact that they benefit big contributors of Gov. Pataki, so it isn't even a sure thing. Perhaps a compromise can be worked out eliminating the Caskill casino (there is a lot of local opposition there) and leaving the other (much further north) proposed casinos.
I think the results of DJT are going to be good for the rest of the year.
The question is whether good results matter. I would be very, very bullish if not for Trump's history (e.g., scewing DJT shareholders for years, taking millions in "salary" and millions more in perks, while the stock has gone from its IPO price of 14 to its current sad levels; leaving AC bondholders in the lurch in the early 90's, making a fool out of Citibank [which apparently isn't that hard to do] during the reorganization; his phoney claim to be looking for a buyer of DJT in the late 90's; the collapse of Trump Airlines, which screwed employees (I almost took a job there -- talk about a close call) and bondholders; the collapse of Alexander's [a NYC retailing institution] after he took control, screwing shareholds, bondholders and thousands of employees (some of whom had worked there for decades). As it is, I am a cautious bull. Perhaps Trump might think that it is time for him to step aside, let a reputable company take over the company, thereby accept a big payout for himself and leave the shareholds with a moderate payout. Otherwise, more of the same is not helpful. If DJT goes down, it will not be because the properties weren't profitable but because of Trump's selfish greed. As a takeover target, it is worth at least $8 a share, which I believe would give Trump a payout of about $200 million from his shares and warrents and "severance package" and leave a little less than $200 million for us. I am therefore holding the stock but without delusions.