Trump goes thump

Dear Congressman,

I am sure you have heard of the New York real estate / casino owner / Rosie O'Donnell basher / TV personality referred to as "the Donald" aka Donald Trump. I would not be surprised if he has not come to Washington or had you come to one of his resorts for some high-powered full-hair-assault lobbying efforts on behalf of his interests. Whereas he probably can be quite charming over cocktails and dinner, before you sponsor a bill to make him the honorary king of New York City, I would be amiss if I did not bring to your attention the state of his public company, Trump Entertainment Resorts, Inc. (TRMP:NASDAQ ).

I noticed that it has only been a public company since 2005. This is because this particular entity has been through two previous bankruptcies, as it appears Mr. Trump has a difficult time managing cash flow for his gaming industry enterprises. In case you are not aware, what happens in most bankruptcies is the following:

1. Corporate debtors (bonds & financing) don't get paid and force company into bankruptcy court to work out problems.

2. Price of common stock goes to somewhere around either 1cent to $1. The stock is essentially worthless at this point, and it is normally being snapped up by large debt holders who are only interested in the voting rights attached or by uneducated investors who think it is a steal.

3. Company either liquidates and remaining assets are distributed to debt holders first, with nothing less for the stockholders when completed, or the company comes out of bankruptcy by canceling old stock (so holders get nothing) and issuing stock in place of debt to most of old debtholders, who then sell it no the open market as quickly as possible to recoup whatever value they can so they don't end up like the previous stockholders when the cycle continues.

So Mr. Trump has twice has allowed his fellow stockholders in his casino holding company to lose their shirts without even dealing any cards or allowing them to pull a slot machine handle.

And currently his companies shares are trading at 21cents, as the company missed a scheduled bond payment and has been given a short reprieve until the company is considered in default, effectively putting them into bankruptcy for the third time.

I have always felt Mr. Trump is a blowhard with bad hair, and the New York Times agrees. But to run the same company into the ground for the third time? Kind of like the Cincinnati Bengals, I think it might be time to re-evaluate the management, not the company.