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Frustrated for years Loews (L) doesn't trade at or above a sum-of-the-parts valuation, the Tisch...

Frustrated for years Loews (L) doesn't trade at or above a sum-of-the-parts valuation, the Tisch family may be going after a new type of value investor, unveiling a snazzy (by value shop standards) new logo and website, and introducing comic book hero Lotta Value: Investment Hunter. Underneath it all, nothing's changed: "Money does not burn a hole in our pockets - we set a high bar for use of our cash resources."
Comments (6)
  • Chris DeMuth Jr.
    , contributor
    Comments (4148) | Send Message
     
    Here's my take on L's (old) site and value:

     

    http://seekingalpha.co...
    6 Apr 2013, 12:10 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1604) | Send Message
     
    If youare that frustrated, then keep buying back your own stock. Pretty much the best way to directly help correct the undervaluation
    7 Apr 2013, 06:09 PM Reply Like
  • Luis Hernandez
    , contributor
    Comments (105) | Send Message
     
    Exactly right!! Stop whining and do something about it... Like repurchasing 10%-20% of the shares outstanding, using both cash on hand and issuing long term bonds at low rates (if that is possible for them to do).
    I seriously can´t believe that we went through the financial crisis and they weren´t able to find ONE bargain... Buffett has found 3 big ones and a bunch of small ones, and Buffett has a BV 10 times the size of Loews...
    I doubt that Loews will grow its BV/share at a rate higher than 10%. I think it will probably be around 8%. So the 10% discount is ok, it should trade at this discount, maybe at BV, so there not much upside here. All their businesses are at best above average, and CNA is a below average insurance company that neither produces an underwriting profit nor outstanding investment returns on its float. It can´t repurchase its shares (because it would go basically private if this were happen, L ows 90%) so its definitely a very undesirable company to be invested in. It should trade at the discount to book that it trades at. CNA is the main reason why Loews trades at a discount.
    Luis Hernandez
    8 Apr 2013, 11:51 AM Reply Like
  • The Lonely Value Investor
    , contributor
    Comments (1002) | Send Message
     
    certainly you would agree that their public holdings should not be valued at their carrying value but rather their market value, right? The NAV (adjusted book value) for Loews is closer to $55 a share. Given the structure of Loews, you can't just look at it like any insurance company. You have to value the parts. Pure BV is meaningless at Loews.

     

    A sum of the parts gets you to at least that $55 per share number. In this market that allows for pretty respectible upside.
    11 Apr 2013, 05:52 PM Reply Like
  • Anthony Grossi
    , contributor
    Comments (199) | Send Message
     
    so many reasons to like the management, how about this old story

     

    http://buswk.co/ZqNRBm
    14 Apr 2013, 05:49 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8385) | Send Message
     
    They blew it in Q1 2009. So many bargains...and did they take advantage of the opportunities?
    8 Apr 2013, 03:49 PM Reply Like
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