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The Ultimate Anti-Huckster CEO... and Why You Should Own His StockBy
Wednesday, August 1, 2012
Don't you hate those ultra-slick CEOs? The hucksters out there who are constantly promoting their companies... even when they know their business is failing?
If you hate the hucksters, you will love Jim Tisch...
"We're a failure at promoting [our] stock," Loews Corp CEO Jim Tisch told Bloomberg in an interview back in May.
I personally love that about Loews... It is partly why I have a "buy" recommendation on Loews in my True Wealth newsletter.
With a "buy" on Loews (NYSE: L), naturally I was happy for our readers that the company hit a 52-week high on Friday. But this week, Jim held a conference call for shareholders... And the stock is now down 5% as a result.
He could have tried to sugarcoat things in that call. But no...
He told investors he's "very concerned" about the global economy. He said: "In the United States, we've got 1.5 percent economic growth, the euro zone is not growing, the emerging markets are not emerging as fast as they had been before."
Those negative quotes made the headlines...
But Jim did report some good news, too. It was just brushed under the carpet by reporters. Here was the good news:
Jim's goal is not to sell more widgets. His goal is to increase the per-share value of Loews over the long run.
One way he's doing that is by buying back shares. This way, each remaining share owns a larger piece of the "pie."
Since he took over as CEO in 1998, he's reduced the number of shares outstanding by nearly one-third. That's a huge share change. This latest quarter was no different... Jim reported he bought back about 1.3 million shares of Loews stock. Jim buys back stock when the stock is trading at a discount to its liquidation value – like it is now.
Jim explained to Bloomberg how he feels about Loews' discount to liquidation value:
Jim is an investor for the long term. He is finding opportunities in the crisis... including in shares of his own stock.
And as I explained recently in DailyWealth, he's quietly beaten the world's greatest investor for 13 years. But you don't hear much about him. He's not a huckster, out there doing self-promotion. He's simply doing the right things to increase the long-term value of his shares.
Right now, his stock is still cheap. So it's a strong buy in my True Wealth newsletter.
Check out shares of Jim Tisch's Loews today.
Good investing,
Steve
Further Reading:
Jim Tisch is best-known for beating the world's greatest investor – Warren Buffett – at his own game... His secret is incredibly simple. It's called the "$5 million test." And it has made him many times his money. Get the details here.
Market NotesSILVER BULLS: THE ODDS ARE NOW IN YOUR FAVOR Silver is breaking out to the upside.
On Monday, silver popped above the down-trending resistance line on the chart below. That's an upside breakout, and it brings the next resistance level at about $30 per ounce into play. But it's not a guaranteed move. Heck, nothing in the markets is ever guaranteed.
The Federal Open Market Committee is meeting this week… And it's set to release a statement on interest rates this afternoon. We also have the jobs report number coming out on Friday. And those crazy European central bankers could say anything at anytime about their plans to save the European Union.
So there's plenty of potential for volatility in the precious metals markets.
But the odds have shifted in favor of the silver bulls. If silver can add to Monday's gains – or at least not drop back into the triangle pattern – we should see higher silver prices for the next several weeks.
– Jeff Clark
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