Tonight on CNBC’s MAD MONEY, Jim Cramer discussed trading and investing for an opportunity that is the same. Cramer said Trump Entertainment (TRMP) is that name. Cramer has been behind the casino stock last year when it was $16.85, but now it is $22.05.It has $4 to $5 upside from here. Next week the company is presenting in pennsylvanie to build a casino in Fairmount Park. He thinks the decision will come in December and it has a better than 50/50 chance of being approved. Public sentiment should drive it up, and the news potential just isn’t in the stock. He loves the gambling and gaming sector because the house always wins. He likes the remodelled resort and add-on project. The new CEo has brought in technology to get more out of customers. He said this is not a Vegas or Macau play, but it is in Atlantic City and A.C. has been making a big comeback. Cramer said a partnership with WYNN was sort of denied. The new casino being built close to it is actually good rather than bad. There is also a real estate shortage in A.C., and TRMP owns a lot land around there. Cramer thinks that TRMP is worth $24 for the casino alone, Philly is worth $4 to $5 if it goes through, and the rest of land is worth $4 to $5 so the entire worth of the company is $32 to $34 per share to him. Cramer did say that you have to be very careful and you can only buy on pullbacks because it is thin volume and will run up too much if evryone piles in.TRMP closed up 0.3% at $22.05 in normal trading, but it went up 4% to $22.95 in after-hours.Jon C. OggNovember 10, 2006
Cramer Recommends Trump Entertainment (TRMP)
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
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