Wednesday, June 9, 2010

Loews Corp. Presentation

I haven't been posting much here lately, but I always try to pass along valuable information on any of my portfolio holdings.  Loews Corp., and specifically CEO James Tisch presented last week at the Sanford Bernstein Strategic Decisions Conference.  Lots of great stuff here.  Tisch, as always, lays out their strategy and why their stock is a good value.  He shoots straight and is very entertaining.  Loews has obviously been impacted by the problems in the gulf and their exposure to Diamond Offshore.  Even though I'm sure the typical re-active panic legislation is coming from congress and this will likely have some effect on the industry, Diamond is a great company.  They don't operate like most energy companies that follow the cyclical, boom and bust cycles with high leverage at the peak and wash out at the bottom.  Diamond uses Loews value investing theory and scoops up assets when they are cheap.  This is one example that will make them a long-term player in an industry that could see some pressure for awhile.

The bottom line here is I trust Loews management, and their ability to allocate capital.  That's what it comes down to with a company like this.  When you buy Berkshire, you're betting on Buffett.  Same deal here, except, in my opinion, this stock is much cheaper.

Just listen to the conference call, and you'll see what I'm talking about.

I'm also looking to add to a few names that I currently own.

Tii Network Technologies (TIII) looks like they made some good use of cash with their recent acquisition as it will be accretive to earnings in Q3.

I also may add to any of the following on further weakness: L, ETFCD, GGP, JMBA, CODI.

Disclosure: I own all of the names mentioned.