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90% of CNA = 7B
50% of DO = 4.9B
66% of BWP = 3.9B

dividing by 400m shares = $39.50/share

Plus about $9/share in cash and investments, plus $3.50/share for HighMount, plus the hotels, plus the Boardwalk general partnership.


Current share price: $42.51.
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Care to explain CNA, DO, & BWP? Thanks.

Charlie Brown
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The stub isn't as cheap as it was earlier this year but it is still cheap. Loews is one of those values hiding in plain sight.

The writedowns at HighMount due to low natural gas prices may be part of the reason Loews shares aren't higher ... and those writedowns will never reverse even if natural gas heads higher in the years to come.
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Care to explain CNA, DO, & BWP?

These are the publicly traded majority-owned subsidiaries of Loews (the "subs" of my post's title): a mediocre insurer, a fairly well-run offshore driller, and a solid midstream MLP involved mostly in natural gas.

http://investor.cna.com/phoenix.zhtml?c=104503&p=irol-ir...

http://www.diamondoffshore.com/investors/investors_overview....

http://ir.bwpmlp.com/phoenix.zhtml?c=193443&p=irol-irhom...

It's conveniently straightforward to add up the market price of Loews' share of these companies. At the moment, that comes to a little under $40/share (depending whether any share repurchases have been done this quarter--they tend keep such things pretty close to the vest). However, Loews also owns a few hotels and an onshore E&P outfit, and there's some change under the couch cushions as well, so liquidation value is a good bit north of the market price.

The conglomerate discount is particularly marked in the case of Loews despite a multi-decade history of market-beating returns (delivered largely through reducing the share count). Adding up the prices of the subs is a useful quick-and-dirty check on how big that discount is.
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Thanks for the comprehensive explanation.

Charlie Brown (Loews bond holder)
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19 Bcf in 1H at $2.34/Mcf before the hedge.

Spot prices around $3.50 this week.
http://www.eia.gov/naturalgas/weekly/

Those are some cheap BTUs. If I were a fertilizer producer or a cement maker, I'd be trying to lock in those prices for as long as possible.
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