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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (44357)	9/15/2011 1:56:22 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78610

re L Loews - while I like their value conscious approach, I believe that most of their business management and results are below average: CNA: perennial underperformer, although they have picked up a bit in the last few years, still below average ROA Pipelines: ~750M$ in cost overruns forced the GP to buy secondaries at above market, below average distribution growth and that is why BWP currently yields 8.4%. Now after years of emphasizing fee only business (regulated pipes) they want to go to the wellhead (gathering and processing business which is more volatile) Highmount E&P: really really bad timing for acquisition, unforced error in WEB lingo - right now HM earns 100M$/year and the acquisition price was 4B$ (plus assumption of debt). DO: rigs look rather old.They have a good strategy to refurbish old rigs in slow times and modernize them but is that enough against some new high spec competitors from Norway etc? I think they have a sound approach with a hard asset bias, which is good but I think they need to spiff up their management. At a high enough discount to book, I'd take another look, but right now L stock looks like it's only a so so (meh in new lingo) value.