Loews Corporation on Wallstrip…The Power of CASHflow

I am no fan of holding Companies. If I want growth, I want my stocks to be focused.

With Loews Corporation (LTR), featured today on Wallstrip , I have missed a beauty.

If you are going to hold companies, you might as well hold the companies that Loews holds – tobacco, hotels, insurance and pipelines. Yowza. It’s about the Cashflow.

Here is what they hold:

The lines of business the subsidiaries are engaged include commercial property and casualty insurance (CNA Financial Corporation (CNA), a 89% owned subsidiary); production and sale of cigarettes (Lorillard, Inc. (Lorillard), a wholly owned subsidiary); operation of interstate natural gas transmission pipeline systems (Boardwalk Pipeline Partners, LP (Boardwalk Pipeline), an 80%-owned subsidiary); operation of offshore oil and gas drilling rigs (Diamond Offshore Drilling, Inc. (Diamond Offshore), a 51%-owned subsidiary); operation of hotels (Loews Hotels Holding Corporation (Loews Hotels), a wholly owned subsidiary), and distribution and sale of watches and clocks (Bulova Corporation (Bulova), a wholly owned subsidiary).

The stock has been a monster as their key business lines have been in the markets most loved sectors of the last 5 years.

Here is the Google Finance start page .

I don’t see any reason to doubt that this trend will end sometime soon. I would personally wait for a better entry as I am focused right now on buying fresher breakouts.

Brian gives a closer look at entries and the price technicals here:

Buying all-time highs, even extended ones like Loews, can work out, you need to be very mindful of money management and position sizing.

Disclosure – No Position