Trump Entertainment Resorts Inc. (TRMP) hit a new 52-week low today and is now trading around $13.20 a share. Over the past three months Trump Entertainment shares have dropped 30% and show no sign of getting back up to its 52-week high of $23.80.
On May 3rd, TRMP reported a Q1 07 loss on decreased promotional costs and efforts to streamline operations. Trump Entertainment operates three casinos in Atlantic City, NewJersey and posted a net loss of $8.1 million, or 26 cents per share, compared with $9.7 million, or 32 cents per share, in the same period a year ago. Wall Street was anticipating the company to lose 24 cents per share. Net revenue fell to $7.42 billion from $7.96 billion and TRMP saw a $3.8 million decline in gaming revenue.
The same day earnings were reported Prudential Financial reiterated their "neutral weight" rating on Trump Entertainment and reduced their target price from $20 to $19. 
It appears that if the Donald’s name is on it, the company stock hasn’t been doing so hot lately (much like his hairdo). Take Drinks Americas Holdings, Ltd. (OTC:DKAM) that puts out Trump Premium Vodka, their shares have dropped 57% in the past three months and still remains an Over-the-Counter stock.
Maybe it’s time for Trump to take his own advice from his TV show The Apprentice and say "you’re fired" to the man in the mirror? But wait, you can still buy Trump Ice, his special bottled water that was completely masterminded on the "hit TV show the Apprentice" (now in its 6th and worst season ever). What’s the tag line for his water you say? Well, it’s…
The Difference is Clear.
I bet my nephew’s 3rd grade class could come up with a better slogan than that, come on.
What I want to know is when is the Instant Trump Hairdo product coming out? Bald Americans would go crazy for that!
Trump is an easy target, but it’s because he has been so successful, his story is the American dream. So we poke fun at him, but he’s a good sport so I know he can take it.
But perhaps there is hope on the horizon, on Monday (5/14) Nollenberger Capital Partners upgraded Trump Entertainment Resorts Inc. (TRMP) from "sell" to "neutral" with the fair value set to $14 a share. The upgrade is based on valuation, following the recent decline in the company’s share price. A partial smoking ban has recently been implemented at Atlantic City casinos, which is unfavorable for the market, and Nollenberger Capital believes that Trump Entertainment Resorts would not be able to meet its goal of achieving property-level EBITDA margins in-line with the Atlantic City averages in 2H07.
So if I had to bet on Trump Entertainment Resorts Inc. (TRMP) versus Drinks Americas Holdings, Ltd. (OTC:DKAM), I’d pick Trump Entertainment Resorts. Real estate is the Donald’s bread and butter, it’s how he’s managed to become one of the wealthiest men in the United States. Trump can handle his properties, so he’ll make a comeback with his Casino’s, that’s something I would be willing to make a bet on. Trump is the Chairman of the Board at TRMP and not just a name on a product (Trump Vodka), which is the case over at Drinks Americas. The Donald is not one to let failure or a setback stand in his way, so don’t expect Trump Entertainment to die a slow death. Trump once said: "Anyone who thinks my story is anywhere near over is sadly mistaken." With that in mind, don’t underestimate Trump Entertainment.
Frank Lara Jr.
Frank Lara Jr. can be reached at [email protected]; he does not own securities in the companies he covers.
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