Topic: How To Invest

Pat: Would you recommend the purchase of this family owned holding company’s shares: Loews. Thanks

Article Excerpt

Loews Corporation, $35.41, symbol L on New York (Shares outstanding: 418.5 million; Market cap: $15.7 billion), is a diversified investment company. Loews owns 89% of insurer CNA Financial Corporation. It also owns 70% of Boardwalk Pipeline Partners, which operates two interstate natural-gas pipeline systems. As well, Loews owns 51% of Diamond Offshore Drilling. Wholly owned Loews Hotels operates 18 locations. Loews Corporation also produces and explores for natural gas through its Highmount LLC subsidiary. CNA Financial also sells investments, and stands to benefit as the economy continues to recover. The subsidiary is now focusing on increasing its profits by cutting its underwriting risk. However, it may continue to be hurt by higher catastrophe losses at its property and casualty operations. Boardwalk Pipeline Partners is currently expanding its pipeline network. That should increase the amount of natural gas it transports. Loews Hotels’ results should improve as a result of higher occupancy rates and prices. However, Diamond Offshore is still seeing depressed demand…