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Tuesday, August 04, 2009 7:27:21 AM
Firstly, I don't know where you get the markets "killing" his companies. One look at the balance sheet will tell you what "killed" this one was the half a billion in accumulated losses, and that's after previous bankruptcies. When you're losing over $200 million a year (TTM), it doesn't take any illegal actions to kill your stock price.
Next, the company has $2 billion (with a b) in assets on the books. Yes it has more than that in liabilities, and it's bleeding red ink, but the current market cap of the company of less than $5 million (with an m) represents as much a gamble that the common is worth something minimal as anything else.
Lastly, you can't compare stock prices between companies with vastly different capital structures. DKAM's market cap is almost 3 times that of Trump, despite DKAM's vastly smaller asset base.
Here's an article that describes the first two bankruptcies of this company (yes, this is actually the third) with a link at the bottom to one on this third filing - www.legalzoom.com/legal-articles/trump-file-bankruptcy-repeatedly.html
IMHO, the question is not how they get into bankruptcy, but how he is able to convince lenders and shareholders (who previously put close to half a billion dollars into the company) to keep financing his projects.
Those who cannot learn from history are doomed to repeat it.
GEORGE SANTAYANA
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