Donald Trump
- Lawhawk
- Kirk
- rasputin
- honeyoneohone
- Happy_2
- Kirk
- Happy_2
- Kirk
- Kirk
- Kirk
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» Lawhawk - Re: Re: Re: Re: Trump Hotels to Reorganize
In response to message posted by radiodude:He leveraged his name to get the banks to reduce their interest, reshuffled things, and took advantage of lower interest rates. He also met with the bank presidents personally, rather than dealing with intermediaries.
One way to get rich is use OPM (Other People’s Money) and convince them you are smart enough to draw a huge salary.Ain't that the truth! BTW, Trump uses OPM all the time. He got his start with OPM - namely that of his dad, who started the real estate empire in the first place. Trump only continued the family business and greatly expanded it by going upscale. Most of Trump realty holdings were middle-class offerings outside Manhattan. Donald took Manhattan as a challenge and went completely upscale - Trump Tower is one result.
-- posted by Lawhawk
» Kirk - Trump: Investor Group Asks Judge To Nix Goodies
.From http://www.forbes.com/technology/wireles...
Associated Press
Update 1: Stockholders Scorn Trump Bankruptcy Plan
02.08.2005, 05:04 PM
<img width=150 height=140 align=left src=http://images.forbes.com/media/faces/t/t...>Denouncing Trump Hotels & Casino Resorts' bankruptcy reorganization plan as "a basket of goodies" for Donald Trump, a group of common stockholders wants to file an alternative with fewer perks for the casino mogul and more value for stakeholders.
In a court filing Monday, the Official Committee of Equity Security Holders asked a judge to terminate Trump Hotels' exclusive right to reorganize its affairs, saying the Chapter 11 reorganization plan now being considered reeks of inside deals benefiting Trump, his bankers and others at the expense of the approximately 32,000 holders of the casino company's common stock.
Trump and his allies are looking out for themselves, not stockholders or others with stakes in Trump Hotels, according to the shareholders.
"First, this is clearly a case in which "the fox is guarding the henhouse," the Equity Committee's filing said.
The Equity Committee does not yet have an alternative proposal crafted; it needs court permission to file such a plan.
Trump could not be reached for comment on the motion Tuesday. His office in New York referred calls to Trump Hotels President Scott Butera, who dismissed the motion as a tactic by the Equity Committee to gain leverage in the bankruptcy.
"I feel very strongly that this deal, which was entered into after a long, highly negotiated process, is the right one. The company and its board took all of our stakeholders' interests to heart when we helped facilitate this plan and we'll be able to demonstrate that," Butera said.
U.S. Bankruptcy Judge Judith Wizmur is to hear arguments on the Equity Committee's motion Feb. 23.
Trump Hotels, which operates three Atlantic City casinos and a riverboat in Gary, Ind., filed Chapter 11 on Nov. 21, citing $1.8 billion in debt.
Under the reorganization plan filed by the company, Trump would surrender majority control but would retain his titles as chairman and CEO. Bondholders would exchange their notes for equity, controlling a two-thirds interest in the post-bankruptcy Trump Hotels company.
Trump, who would have to invest about $70 million into the company, stands to benefit handsomely if the plan - which is now set for an April 5 confirmation hearing - is approved as is.
He would receive:
_a $2 million a year salary, plus bonuses and other fringe benefits.
_limited partnership interests that he could convert into more than 22 percent of the common stock in the reorganized company.
_the right to veto sale of any Trump casino, which can be overridden only if the company agrees to indemnify Trump for up to $100 million in personal tax liabilities stemming from such a sale.
_a three-year, right-of-first refusal to serve as contractor for any construction project of $35 million or more embarked on by Trump Hotels after it emerges from Chapter 11.
_Trump Hotels' 25 percent stake in the Miss Universe Pageant.
In addition, a "Restructuring Support Agreement" filed by Trump Hotels bans it from negotiating, helping prepare or considering alternative plans for the reorganization and gives Trump veto power in case he disagrees with any changes made to his company's plan while in bankruptcy, according to the Equity Committee's motion.
"Conflicts of interest are not just present in this case, they are pervasive," said the motion, filed by Equity Committee lawyers Daniel K. Askin and Frank Merola. "A plan that is the product of such insider self-dealing cannot be confirmed."
The shareholders also object to Trump Hotels' use of investment bank UBS Securities - Butera's former employer - as the company's financial adviser and co-arranger of $500 million in "exit financing" Trump intends to use once the company emerges from bankruptcy court protection.
Butera said the decision to hire UBS was the board of directors' choice after soliciting proposals from several banks. He said he expected the Equity Committee's motion and does not believe it will delay Trump Hotels' emergence from bankruptcy.
-- posted by Kirk
» rasputin - Trump
--I don't know what it is, but I just don't like this guy. Too slick. Or maybe it's a slimy quality I perceive. Is he just a successful psychopath? There are plenty of wealthy or otherwise successful people who I appreciate, admire and applaud, so it's not jealousy I don't think. Maybe he'll get cancer. Not that I'm wishing that on him, 'cuz that wouldn't be the Christian thing to do. Oh, that's right...I'm not Christian anyway. 
-- posted by rasputin
» honeyoneohone - Re: Trump
In response to Trump posted by rasputin:.
Well, Ras...one thing that Christians and "not Christians" both know: The Donald cannot take it with him.
-- posted by honeyoneohone
» Happy_2 - Trump Can D0?
The fact that Trump went bankrupt once, tells me he is not the greatest business man. He is just a gambler that takes huge risks. If he wins, he wins big, if he loses, it is other peoples money.A good business man gets rich slowly. He does not take huge chances that will end in bankruptcy if things don't go perfect. Trump has learned that if you owe the bank a million you are in trouble. But, if you owe the bank a billion, the bank is in trouble. He has played this to the hilt.
-- posted by Happy_2
» Kirk - Re: Trump Can D0?
.In response to Trump Can D0? posted by Happy_2:
What I don't understand is why do people keep giving him money? He seems to be all about self promotion and living big. I guess many in that lifestyle that don't earn it fall for his act.
Then again, I never understood why the HP board of directors paid Carly Fiorina so much either. She seemed to be the female version of The Donald. It was reported that her entorage included a personal hair dresser so she looked her best before meeting important customers. Trump could use one of those...
-- posted by Kirk
» Happy_2 - Re: Re: Trump Can D0?
In response to Re: Trump Can D0? posted by Kirk:Trump has gotten sellers to finance much of his purchases. He has taken on troubled properties that no one else thought worth a second look. Sometimes these worked out. Sometimes they didn't. But his loss was always limited on the down side, OPM. And, like I said previously, when you owe the bank a billion, the bank is in trouble. The banker will do anything, including extending more money, so as not to show an "official loss".
-- posted by Happy_2
» Kirk - Trump Revamp Not a Task for Apprentices
.Trump Revamp Not a Task for Apprentices
By Ross Snel
TheStreet.com Staff Reporter
10/4/2005 7:08 AM EDT
URL: http://www.thestreet.com/markets/rosssne...
With bankruptcy and restructuring firmly behind it, Donald Trump's casino empire has a shot at regaining its former luster.
Doing so will take lots of elbow grease, however, and there will be little room for error. That's because the competition, which is already transforming Atlantic City, N.J., from a tour-bus destination into an entertainment mecca for the young, hip and rich, has a big head start.
Even though Trump, the real estate mogul and reality-television star, has picked seasoned casino executives, not apprentices, to lead Trump Entertainment Resorts (TRMP:Nasdaq) , they have their work cut out for them.
"Despite years of industry experience, new management is faced with many challenges in turning around the Trump properties that include the stiff competition from Borgata, the expanded Tropicana and Resorts, and other Atlantic City operators upgrading their properties," Kimberly Noland, an analyst at bond research company Gimme Credit, wrote in a research report.
Struggling under some $1.83 billion in debt before its prepackaged Chapter 11 filing last November, the business -- which owns three Atlantic City casinos and a smaller Indiana resort -- found itself without the necessary cash to renovate and expand its casinos, even as rivals were improving old properties and breaking ground on new ones.
One symptom was hotel rooms in "dire" need of renovation, the company's new CEO James Perry acknowledged during the company's second-quarter conference call in August.
From 2000 through 2004, total capital spending at Trump's Taj Mahal on the northern end of the Atlantic City boardwalk was $110.3 million, according to figures from the New Jersey Casino Control Commission. Over the same period, capital spending at Aztar's (AZR:NYSE) Tropicana was $374.4 million and $262 million at Harrah's Entertainment's (HET:NYSE) Showboat.
That period also saw the July 2003 grand opening of the Borgata, a $1.1 billion joint venture of Boyd Gaming (BYD:NYSE) and MGM Mirage (MGM:NYSE) that upped the ante in Atlantic City. With 2,000 room and suites, 11 restaurants, 11 boutiques, a spa and theater, the Borgata draws well-heeled overnight visitors interested in a multifaceted experience.
The resort has vaulted to the top of the pack, with net revenue for the first six months of this year outpacing the closest competitor, Bally's Atlantic City, by $50 million. Bally's is owned by Harrah's.
More Money
Trump's outfit emerged from Chapter 11 in May having slimmed its debt load to about $1.43 billion. The company is also paying 8.5% interest on its restructured debt, down from pre-bankruptcy rates of 11.25% and higher.
"Their chances are a lot better now than they were before they refinanced," says Bradford Smith, who runs International Gaming Consultant Services and is a former chairman of the New Jersey Casino Control Commission. "Trump was always sort of a MAC-machine for banks and financiers. Now he's lifted some of the debt, and has more money to be put back into the properties."
Although Trump's name remains at the front of the company's moniker -- and in abbreviated form in its new ticker -- the well-known dealmaker will have a more hands-off role in the restructured business. Although he remains chairman, Trump ceded the CEO's job to Perry and brought other seasoned outsiders into the business. He even sat out the second-quarter conference call.
Perry has a reputation for reversing corporate fortunes. Before retiring as CEO of Argosy Gaming (AGY:NYSE) in 2003, he boosted that company's revenue and returned it to sustained profitability. (On Monday, Penn National Gaming (PENN:Nasdaq) completed its $2.2 billion acquisition of Argosy.)
Working alongside Perry is new Chief Operating Officer Mark Juliano, who was president of the luxurious Caesars Palace casino in Las Vegas, now owned by Harrah's. He's no stranger to Atlantic City either, having run the Caesars casino there from 1994 to 1999. He also has a reputation for being able to woo high-rollers.
Other recent hires include Jim Rigot, a Borgata veteran who will soon take over as general manager at the Trump Plaza.
Smith says if any management team is equipped to take on Trump Entertainment's challenges, the current one is. The company has already made some progress, having renovated all of its hotel rooms except for 300 at the Trump Marina, which like the Borgata, is located in Atlantic City's marina district.
Stiff Competition
On the second-quarter earnings call, Perry said his team will spend the next 18 months improving margins at existing properties. One focus will be making marketing efforts more cost-effective.
Perry and his lieutenants are working on a capital spending plan, which they hope to share with investors by the end of the year. It could include renovations to casino floors and restaurants, as well as new concept restaurants. They're also working on plans for a new hotel tower at the Taj Mahal, which could add 1,250 rooms, although such a project would take about three years to complete.
Adding hotel rooms would probably be a wise move, says Smith. Given Atlantic City's chronic shortage of hotel rooms, resorts that add new towers typically see a boost to business.
After addressing some of its immediate challenges, Trump Entertainment might seek to expand into other markets, Perry said in the second-quarter call. The company's announcement Monday that it had entered into an option to lease an 18-acre plot in Philadelphia shows it's already making plans to do that.
However, even as Trump's new executives roll up their sleeves, competitors aren't standing still. The Borgata is planning a $200 million public-space expansion to be completed next spring and a $325 million 800-room hotel expansion scheduled for the fourth quarter of 2007.
Next year, Caesars plans to open "The Pier," a 500,000 square-foot dining, shopping and entertainment complex on the boardwalk.
"The other Atlantic City resorts, they're destination resorts," says Gimme Credit's Noland. "Trump needs to get to that quality level. But in the meantime, it needs to get its stable of existing customers to keep coming."
Although Noland says Trump Entertainment's future has plenty of risks, she says bondholders are currently being compensated appropriately. The bonds were yielding almost 9% late last week, making them an "interesting" investment, especially when many other gaming securities are trading with lower yields relative to government securities, she says.
As for the stock, which has navigated a range of $12 to $21.50, Noland considers it fully valued around $19 and has encouraged investors to buy it on significant dips. Shares closed at $18 Monday. Noland owns no positions in Trump Entertainment and Gimme Credit does no business with the company.
Given that Trump's shareholder meeting this Thursday is unlikely to yield substantial new insights into the company's plans, investors will focus next on third-quarter earnings, expected near the end of the month.
As of 10/1/05 the Total Return for "Kirk's Newsletter Portfolio" since 12/31/98 is Up 173% while the NASDAQ is down 2%!!!
For 2005, Kirk’s Newsletter is Up 5.0% YTD vs QQQQ down 1.2% YTD vs DJIA down 2.0% YTD
-- posted by Kirk
» Kirk - TrumpNation : The Art of Being The Donald
.I just started reading TrumpNation : The Art of Being The Donald by Timothy L. O'Brien who writes for the New York Times.
<img width=240 height=240 align=left src=http://images.amazon.com/images/P/0446578541.01._AA240_SCLZZZZZZZ_.jpg>
O’Brien, in his reporter capacity, has followed “The Donald” for many years so he is a perfect person to write an unbiased book about the man. After only two chapters, I find O’Brien has both good and bad things to say about “The Donald” while putting them in context that makes it easier to understand Donald Trump.
The first chapter, TrumpTV, talks about the immensely popular show “The Apprentice. ” Here we learn “The Donald” wanted to be paid more than the total salary of “Friends.” The six friends stars made $1.5M each or $9M per 30 minute episode. O’Brien says Trump wanted twice that since his show ran for 60 minutes! O’Brien tells us Trump didn’t get his wish, but he was still paid in excess of $1.25M per episode.
In chapter two, TrumpRoots, talks about Trump’s background and how he became such a flamboyant showboat. It was also interesting to learn he is not a self made man in the Bill Gates style in that his father made millions as a real estate developer. I like the writing style that lists how we all knew New York as a dangerous, bustling city of Archie Bunker, Taxi Driver, French Connection and Welcome Back Kotter but.. "For Donald, a trust-funder with money to play the club scene, New York in the early to mid - 1970's was a great place to get laid."
I can’t wait to get to “TrumpBroke” where O’Brien shows Trump’s wealth by year as listed on the Forbes 400 list.
-- posted by Kirk
» Kirk - Buffett vs. Trump:Who is the better billionaire?
.Buffett vs. Trump
By Richard Gibbons
December 7, 2005
http://www.fool.com/news/commentary/2005...
Warren Buffett and Donald Trump are two of the best-known businessmen on the planet. Both are self-made billionaires who have dominated headlines for the last three decades. In the process, they've both garnered huge cult followings. These businessmen are innovative, opinionated, unique, and extremely successful.
But here at The Motley Fool, we aren't satisfied with saying they both did pretty darn well. To Trump, business is about winning -- second place is just the first of the losers. Thus, it's necessary to answer the question that everyone's asking: Who's the better billionaire?
So, taking a page from Trump's Miss USA pageant, I will examine each billionaire based on a number of important criteria. He who excels to the greatest extent will be crowned Mr. Billionaire 2005.
On paper
Buffett Trump Nickname Oracle of Omaha The Donald Age 75 59 Net Worth $44 billion $2.7 billion Employees 180,000 15,000 Car Lincoln Town Car Limousine Sport Bridge Golf Residence $500,000 house
Omaha, Neb.$50 million penthouse
New York, N.Y.Education Master's Degree in
Economics, ColumbiaBachelor's Degree in
Economics, WhartonAnnual Salary $100,000 $46.5 million Friend Bill Gates Regis Philbin
On paper, it's a close competition. Buffett's biggest advantages are his net worth, a nickname that isn't reminiscent of a duck, and the fact that Microsoft's (Nasdaq: MSFT) chairman is a far more interesting companion than Regis. But I think it's hard to beat Trump's salary and that 16-year age difference. Even the apparent wealth gap isn't that big. If you assume that Trump grows his net worth by 12% a year, by the time he's Buffett's age, he'll have $16.5 billion. Edge: Trump.
Style
The most conspicuous difference between the two billionaires is their style. Buffett places an exceptionally high value on integrity. He's subtle and tends to let his achievements speak for themselves. His strong sense of humor and understated sense of irony make his letters to shareholders not only informative, but also delightful to read. He definitely seems to enjoy life.
Trump, on the other hand, has not yet been accused of conveying "folksy wisdom." And he has said that "subtlety and modesty are appropriate for nuns and therapists, but if you're in business, you'd better learn to speak up and announce your significant accomplishments to the world -- nobody else will." Trump also definitely knows how to make an entrance. Even so, it doesn't seem so much like he's having fun but rather trying to prove to everyone else how much fun he's having. Edge: Buffett.
Swimsuit competition
Canceled because of rain.
Marketing
Both billionaires are extremely successful in marketing their products. Decades ago, Buffett drank Pepsi (NYSE: PEP). But now that Berkshire Hathaway owns 8.4% of Coca-Cola (NYSE: KO), he's become a conspicuous Coke consumer. Buffett pitches his products in his shareholder letters and at Berkshire's annual meetings. He's no slouch when it comes to marketing.
Trump, though, is practically unbeatable in this area. He tattoos the Trump moniker on any available building, golf course, and casino -- even a bike race (The Tour de Trump) -- endeavoring to make the Trump brand synonymous with quality. People will pay millions just to name a high-rise after him. He also has his own TV show that not only reinforces that branding but also allows him do infomercials for other companies. As always, Trump himself says it best: "I'm a bit of a P.T. Barnum. I make stars out of everyone." Edge: Trump.
As a lunch date
Each year, Buffett auctions off a lunch on eBay and gives the proceeds to charity. The highest bidder gets to have lunch with Buffett in Omaha or New York. The cost of the most recent lunch: $351,000.
Trump, on the other hand, sometimes rewards winners on his TV show by inviting them to a meal. The primary problem is that to get lunch, you have to appear on his show and jump through all the hoops that entails. The cost of lunch: your self-respect. Edge: Buffett.
Management techniques
Buffett's management strategy is to hire intelligent, energetic people with strong integrity who are passionate about their business. Then he gives them the responsibility and freedom to achieve outstanding results. Buffett describes his management style as "delegating to the point of abdication."
Trump has a similar, though slightly different, philosophy. His strategy is: "Get the best people and trust them, but watch them closely." Maybe it's seeing him fire people every week on TV, but Trump seems significantly more aggressive and paranoid. After all, he says things like "If someone screws you, screw them back 10 times harder." Both billionaires' management styles work for them, but Trump's seems like a lot more effort. Edge: Buffett.
Keys to success
Interestingly, both Buffett and Trump suggest similar keys to success. Both read extensively -- Buffett reads five newspapers daily, while Trump reads seven. Both recommend that people work in jobs they love. Buffett seems to feel life is too short to spend it doing a job you hate, while Trump notes that he's "never seen anyone succeed who didn't love what they were doing."
Similarly, both emphasize persistence, though once again, they approach the topic differently. Buffett recommends patience -- if you don't find a good investment, keep looking. Trump notes, "If there is a concrete wall in front of you, you have to go through it." Buffett, I think, would instead suggest looking for a path around it -- or a shorter wall.
While neither man totally ignores innate abilities, they see many critical success factors as a matter of choice. For instance, Buffett considers honesty and dependability to be key qualities. Trump, on the other hand, focuses on confidence, toughness, discipline, and thinking big. Both philosophies seem reasonable. Tie.
Investment strategy
Buffett is a patient investor and a superb capital allocator. While he's willing to buy average businesses at low prices, he prefers to buy wonderful businesses at fair prices. He generally isn't a trader -- his favorite holding period is forever. While he has bought REITs for his personal portfolio, he generally avoids real estate, saying, "Why should I buy real estate when the stock market is so easy?"
Trump, on the other hand, is a dealmaker, a real estate developer, and one of the biggest landlords in New York City. He doesn't just allocate capital. He adds value by renovating, developing, managing, and rebranding his real estate. He, too, has a value investing strategy, noting, "The best deals are made when no one else wants them."
Both Buffett and Trump use leverage. Buffett owns several insurance companies and invests the float that those companies generate. He never wants to make a bet so big that it could threaten the company. Trump, on the other hand, borrows money, a riskier type of leverage. Trump came close to personal bankruptcy in the early 1990s, falling $900 million in debt when his casinos weren't performing as hoped. Last year, Trump Hotels & Casinos filed for bankruptcy -- it was recently restructured as Trump Entertainment Resorts (Nasdaq: TRMP).
I find Buffett's strategies attractive, though as a member of the Motley Fool Inside Value team, I'm biased because we use similar techniques. In fact, several times this year, we've recommended a stock only to find out later that Buffett was buying at the same time. The fact that Buffett's strategies have led him to 20%-30% annual returns while Trump seems to have difficulty avoiding occasional bankruptcies makes the decision relatively easy. Edge: Buffett.
The winner
By a difference of 4-2, Buffett is the better billionaire. Since these folks place a high value on meals, I'll buy him dinner next time he's in Vancouver for his prize. But The Donald doesn't have to feel too bad. He's still a billionaire, and, as he says, "I love losers, because they make me feel so good."
As of 12/4/05 the Total Return for "Kirk's Newsletter Portfolio" since 12/31/98 is Up 194% while the S&P500 only up 13%!!! & NASDAQ only up 4%!!! (my portfolio beta is roughly equal to that of QQQQ.)
For 2005, Kirk’s Newsletter Portfolio is Up 13.1% YTD vs. QQQQ up 5.5% YTD vs. DJIA UP 0.9% YTD vs. S&P500 Up 6.1% YTD
-- posted by Kirk
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