Trump Casino Stock Soars As The Donald Considers Selling

The stock market closed of Friday and one of Trumps' companies, Trump Entertainment Resorts Inc., saw it's stock rise $2.73, or twenty one percent, and closed the day at $15.80.

However, even though the stock was up, the company reported that it is considering offers to buy the company. The company has recently emerged from bankruptcy protection in May of 2005.

Since coming out of the bankruptcy protection, Friday's closing numbers were the highest the stock has seen. But still, the company has formed a committee to look into the offers it has received.

Merrill Lynch and Co. was hired on March 12th of this year to study available options for three casinos in Atlantic City, New Jersey.

The Trump company has struggled and has not been profitable since leaving the bankruptcy protection program, but investors see an opportunity to turn that around with the right marketing and business approach.

Joseph Weinert the vice president of Spectrum Gaming Group, a consulting firm based in Atlantic City, had this to say, "It's no secret that Trump's assets fell behind with the bankruptcy, and there's alot of catching up to do, if you can come in and build a mouse trap better than the current offerings and manage it well, and market it well, you will be handsomely rewarded."

One snag that could affect a potential sale is a provision in the company's reorganization plan that hits Trump with up to $100 million in capital gains taxes if one or all of the casinos are sold. So a potential buyer would have to figure that into the eventual buyout price.

May 20, 2007
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com    Previous Page | Internet Gambling | Top Online Casinos | Submit News!