Riveria lost $2.48 per share last year and has lost money for several years now. It has annual sales of about $200 million and long term debt of $215 million. But you can buy the whole compamy for $22 million. For a Strip casino??? The d$%#% land is worth more than that. What am I missing here? Trump is no dummy. Why would he want to buy a failing casino's stock unless he thinks it will turn around. I compared it to Aztar (Tropicana) and while the sales are only 25% of Aztars the cash flow per share is almost identical. It sounds like with decent management that the property could be rather profitable. The biggest problem is the excessive LT debt and insufficient cash flow ($10 million) to cover the interest. The gross margin at Riveria is 34% while at Aztar it is 53%. That sounds like bad management to me. How much money do we have in the building fund? Maybe we just found a home.
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