Loews Corporation is a holding company whose subsidiaries are engaged in property, casualty and life insurance, the production and sale of cigarettes & watches, and the operation of hotels and oil and gas drilling rigs. For the FY ended 12/31/00, revenues fell 1% to $21.34B. Net income before accounting change totaled $1.88B, up from $521.1M. Results reflect lower insurance premiums, offset by decreased insurance claims and policyholders% benefits.

February 27, 2001

Loews Corporation is a diversified holding company that provides property, casualty and life insurance, hotel operation services, and offshore oil and gas drilling services. The company also manufactures cigarettes, watches, and clocks. The stock has been on fire over the past year. Shares of LTR hit a four-year low of $38.25 last March. On Tuesday, the stock hit an intra-day high of $106.90, representing a 178% gain and a new three-year high. On February 20th, the company announced a 2:1 split, payable on March 20th, and we believe that LTR has started its split run. Going forward, support is the February 16th intra-day high of $105.40 with additional support at Monday’s intra-day high of $103.06. Resistance is the 12/5/97 close of $107.56 and then the 11/21/97 close of $108.50. Traders may consider entry points on a bounce off of $105.40 or a breakout above $107.56 on volume of at least 225,000 shares by noon. We plan to place stops at $98.50 to limit potential losses.

Picked on February 27th @ $106.40
Change since picked +0.00
Stop Loss @ $98.50

March 1, 2001

Loews Corporation, a provider of insurance, cigarettes, watches, hotel operation services, and oil and gas drilling services, traded to a new 52-week high of $110.30 on Thursday. Unfortunately, the stock reversed directions following news that the U.S. Justice Department has filed an amended lawsuit against the tobacco industry designed to recover billions of dollars spent by the government on smoking-related illnesses. Shares of LTR ended the session at $107.35 with 460,000 shares changing hands. Hopefully, the stock will be able to bounce back, as we are now less than three weeks away from the 2:1 split, payable on March 20th. Until then, support has moved up to Tuesday’s intra-day high of $106.90 with stronger support at $104.67, the 5-dma. Resistance has come in at Thursday’s intra-day high of $110.30 and then $113.87, the 11/5/97 intra-day high. Consider opening new positions on a bounce off of $106.90 or a breakout above $110.30 on volume greater than 225,000 shares by noon. We are leaving our stops at $98.50 as downside protection.

Picked on February 27th @ $106.40
Change since picked +0.95
Stop Loss @ $98.50