on Feb 27th, 2009A Double Discount at Loews (Screens)
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LOEWS, THE NEW YORK CONGLOMERATE CONTROLLED for the past half century by the Tisch family, long has rewarded shareholders through savvy investments in closely held and public companies. Since June, however, the company’s stock has tumbled 56%, to a recent 21, as the value of Loews’ (L) investments in public entities such as Diamond Offshore Drilling and CNA Financial have fallen sharply.
As a result, Loews now trades at about 39% below estimated asset value of $34 a share — a far steeper discount than the 20% average of the past two years. Fans argue that the stock actually offers a ”double discount,” because shares of two of its three key equity holdings — CNA (CNA), a property-and-casualty insurer, and Diamond Offshore (DO), a provider of ocean-based oil rigs — are themselves depressed.
Accordingly, now may be a good time to jump in alongside the Tisches, who control about 30% of the company, in the expectation that Loews’ investments will rebound and the discount to net asset va News widgets and RSS feeds on Feedzilla.com
