vinod1 Posted March 31, 2010 Share Posted March 31, 2010 Bargainman, The three public subs are consolidated on the parents balance sheet i.e. assets/liabilities of subs are added up onto the parent's BS. Thus MV of subs does not enter into the accounting book value of L. Vinod Link to comment Share on other sites More sharing options...
Guest Bronco Posted March 31, 2010 Share Posted March 31, 2010 I agree with Vindo - Loews consolidates these companies in their F/S as if they own the entire thing and then back out the % they don't own through "minority interests". I believe investments under 20% are accounted one way, 20% - 50% another way, and over 50% as if they are consolidated (as in the case with Loews' 3 publicly traded subs). It is great in one sense that this company is hard to value - can pick shares in this company cheaply. But it seems the FMV is never realized, which is a negative (and one that pisses off management). Link to comment Share on other sites More sharing options...
Myth465 Posted March 31, 2010 Share Posted March 31, 2010 I agree with Vindo - Loews consolidates these companies in their F/S as if they own the entire thing and then back out the % they don't own through "minority interests". I believe investments under 20% are accounted one way, 20% - 50% another way, and over 50% as if they are consolidated (as in the case with Loews' 3 publicly traded subs). It is great in one sense that this company is hard to value - can pick shares in this company cheaply. But it seems the FMV is never realized, which is a negative (and one that pisses off management). I agree, Management does seem a bit annoyed. On the calls you can hear it in their voices and can see the new reporting that they are doing to try to fix it. I agree with them. Its hard to figure out what Loews is worth, but Loews should trade at a premium to its public holdings. They seem to be happy buying back shares for the time being though. Link to comment Share on other sites More sharing options...
Guest Bronco Posted March 31, 2010 Share Posted March 31, 2010 Myth - I predict that within 2-3 years the share count will be 400million (which would cost about 800-900 million at today's share price). Maybe much less if they did another Carolina Group redemption. Link to comment Share on other sites More sharing options...
Myth465 Posted March 31, 2010 Share Posted March 31, 2010 I agree, for me this is a long term value holding. I like the fact that Management owns 25% and is putting their money where their mouth is in terms of the stock buybacks. I view this as a stable but lumpy 15% investment and more during market dislocations. This along with FUR, and FFH will be long term 10% holdings. Link to comment Share on other sites More sharing options...
Guest Bronco Posted March 31, 2010 Share Posted March 31, 2010 Like I said in an earlier post - bad for you that we think alike. Link to comment Share on other sites More sharing options...
bttmline Posted May 1, 2010 Share Posted May 1, 2010 Below you will find a link to a spreadsheet I have put together for loews sum of parts analysis. The value assigned to Highmount ($1.75 b) is based on various numbers I've seen recently and not my own analysis. Let me know if this is helpful and any changes or mistakes I have in it. Thoughts on Valuation? Hotels Boardwalk GP http://spreadsheets.google.com/ccc?key=0ApYtMgkh8FHjdHNvVHZJUk51QjNzZ3doSkxjaTlweHc&hl=en Link to comment Share on other sites More sharing options...
Guest Bronco Posted May 1, 2010 Share Posted May 1, 2010 Bottomline - I think you did good work. Hotels may be worth more - the NYC property alone may have a FMV of $200m. The net cash at the holding co. may be slightly less than 3B - but it is approaching that. Your FMV for Highmount stake is less than they paid for it but I personally think it is accurate. I still think Loews misses the big FCF generator that they had in Carolina/Lorillard. I was hoping they would invest in something like GPC or DPS when the market crashed. Oh well. They will soon reach a point that cash at the parent will exceed a safety level. Especially if CNA pays back the $1B. Speaking of CNA - I can easily imagine a FMV of this of around $12B - $13B in the next couple years. That stake + cash on hand would equal the entire market cap of Loews. If this became true, you would get DO and BWP and all the other nice assets for free. Dare to dream...... Link to comment Share on other sites More sharing options...
vinod1 Posted May 1, 2010 Share Posted May 1, 2010 Below you will find a link to a spreadsheet I have put together for loews sum of parts analysis. The value assigned to Highmount ($1.75 b) is based on various numbers I've seen recently and not my own analysis. Let me know if this is helpful and any changes or mistakes I have in it. Thoughts on Valuation? Hotels Boardwalk GP http://spreadsheets.google.com/ccc?key=0ApYtMgkh8FHjdHNvVHZJUk51QjNzZ3doSkxjaTlweHc&hl=en Thanks for sharing. Vinod Link to comment Share on other sites More sharing options...
Myth465 Posted May 1, 2010 Share Posted May 1, 2010 I agree Bronco. As it is now they are heavily into Oil and Gas and Insurance. They need something a bit less cyclical to smooth things out in my opinion. Cigarettes were great for that. They are raising cash so maybe they are planning something big. Link to comment Share on other sites More sharing options...
bttmline Posted May 2, 2010 Share Posted May 2, 2010 Boardwalk should prove to a pretty reliable cash flow generator over the next couple of years. If my memory is correct I think the average remaining lease term is about 7 yrs on their pipelines. I really like the company, but figured I buy it through loews at a discount and with the gp than at market. Anyways....I do agree with you guys, I'm looking forward to an acquisition on something non oil/gas related that's a reliable cash flow generator. Link to comment Share on other sites More sharing options...
Myth465 Posted June 4, 2010 Share Posted June 4, 2010 Great Presentation by Loews. http://ir.loews.com/phoenix.zhtml?c=102789&p=irol-EventDetails&EventId=3059069&WebCastId=999197&StreamId=1495753 Tisch says its the cheapest stock he knows. I think there are cheaper stocks but the man has a good point, especially in the large cap space. Also thanks alot for the spreadsheet, Its updated real time which makes it very useful. I was hoping Loews would get cheaper due to the DO situation, but its still has quite a bit of discount. Link to comment Share on other sites More sharing options...
biaggio Posted August 1, 2011 Share Posted August 1, 2011 http://finance.yahoo.com/news/Loews-Corporation-Reports-Net-bw-204152717.html?x=0&.v=1 Loews Corporation Reports Net Income for the Second Quarter of 2011 Anyone holding,=, buying or watching L.? Link to comment Share on other sites More sharing options...
Hawk4value Posted August 1, 2011 Share Posted August 1, 2011 Had been watching Loews for years, then pulled the trigger a couple of years ago in the middle of the crisis. The company has a rock solid balance sheet. Is built to withstand any financial crisis the world can throw at it. Except for the insurance & hotel divisions, the other loews subsidiaries are focused on energy: gas, pipeline, drilling, or things the world cannot do without. They run the company as a family enterprize for the long, long term. Personally, I never intend to sell any shares, and will look to add in a downdraft. Link to comment Share on other sites More sharing options...
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