Casino stocks

GeorgeF · #1 08-10-2004, 07:33 PM

I wonder if the Trump bankrupcy will cause problems for other casinos. In particular if Trump wipes out it's debt it will be free to compete against other casinos that have old debt on their books. This might force other casinos to bail out on their debts to compete with the debt free Trump.

Competing against bankrupt competitors could also be a problem for airlines, ect. In the flooring business Armstong has been going stronger since bankrupcy, check out your local home store. Bankrupcy also helped MCI Worldcom but screwed all those that did not declare bankrupcy.

BadBoyBenny · #2 08-10-2004, 10:10 PM

I think Trump will get a much better deal on it's debt, I read something like 1.2 million at 12% down to 700 million at 8%. This is a big boost but I don't think it'll mean too much tyrouble for the competition. Certainly not enough capital for significant improvements.

playerfl · #3 08-11-2004, 11:13 AM

yeah, I think they did this restructuring for that exact reason. Although they didn't wipe out their debt, just reduced the principle a bit and significantly dropped the interest payments. When corps do bankruptcy its not the same thing at all as personal bankruptcy, its just a strategy. Trump casino's were getting beat out by newcomers with cheaper financing.

Ray Zee · #4 08-12-2004, 12:43 AM

casinos have a hard timecompoeting because they have more money or less debt. they can possibly help their bottom line but to actually take a significant amount of people away from a place to theirs is tough.
but with the oil going way up and scary results ahead because of that andmore. casino stocks may well be in real trouble ahead. i would think those with debt and or in places that require lots of driving to get to may see big drops in their stocks. loks like a short to me. but the time frame is yet unclear.