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Loews


mhdousa
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I have listened to it and find management to be impressive.  I like the individual businesses that they own and believe that management have been good stewards of shareholders capital over time.

 

The presentation is also nice since it provides slides to go along with the communication.

 

I don't completely agree with the valuation that Barron's put out over the weekend, but would agree that the Loew's is certainly trading at a discount to the sum of the parts.

 

 

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  • 2 years later...
  • 1 year later...

...Now compare the results of Loews' capital allocation since 2011.

 

Loews BPS versus S&P 500 (Total return)

 

http://4.bp.blogspot.com/-bse8-T7I3Dc/UTjXXpbQ3_I/AAAAAAAAB2k/8w7D3KoDDeM/s640/aaal+5.JPG

 

Taken from another good write-up/ update by The Brooklyn Investor:

 

http://brooklyninvestor.blogspot.com/2013/03/loews-adjusted-book-value-update.html

 

On an adjusted book value basis, L grew book value +6.4% in 2012 and +11.34%/year over the past ten years.  The five year figure is flat, again, due to the DO rally/spike in 2007.

 

Notice, too, that the p/b ratio on an adjusted basis seems much more stable than the unadjusted p/b ratio.  On an adjusted basis, L has traded at between 0.8-0.9x book.

 

http://2.bp.blogspot.com/-AAl3RQ45OkY/UTjXMl3qK4I/AAAAAAAAB2M/thDR4MDK85s/s640/aaal+2.JPG

 

Assuming all else unchanged and just updating the current stock prices of DO, CNA and BWP, the current adjusted BPS comes to $51.70/share compared to L trading now at $43.22, a 16% discount.

 

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