Monday, May 3, 2010

Solid Results From Loews

Loews Corp. (L) reported alongside CNA financial, of which they own 90%.  Solid numbers out, like I expected.  Things just keep improving for their businesses.  CNA is the big driver of earnings, and things are really starting to turn around there.

I listened to most of the earnings call today, and didn't pick up much quote-worthy, but if I find anything in the transcript, I'll point it out later.

Truthfully, the stock is getting pushed down because of Diamond Offshore, of which they own 50%.  DO has been sold off due to earnings (they cut their special div.), and the problems due to the oil spill/Obama's offshore dilling plan.  If you're looking to buy into the offshore drilling space, now is the time, and DO (or NE) is the stock.  I prefer to buy the parent, and get a discount, but that's just me.

Loews book value is now $41.80/share.  As I write, shares are $37.29.  Value here? I'd say yes.

If you're looking for a quick run-through on their structure, this will work well.

Disclosure: Long L

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