It goes without saying that diversification is one defense against the onset of a bear market. Further, occasionally the market offers a conglomerate that possesses many of the characteristics of a diversified mutual fund or portfolio, and with the above in mind, Loews is worth a review.

Loews (NYSE: LTR) is a holding company with operations that include property / casualty insurance, hotels, offshore oil/gas drilling, natural gas pipelines, and cigarettes. Don't confuse LTR with that other company with a similar-sounding name: LTR is a conglomerate.

Analysts really like LTR's Diamond Offshore deepwater/midwater oil rig operations, which, as one might sense, are experiencing strong demand and pricing power, given the global drive for more oil. Analysts are equally impressed by LTR's natural gas pipeline business.

Meanwhile, Loew's hotel business is expected to continue to register adequate revenue results, on solid gains in leisure travel; further, the company's financial division should register single-digit growth in 2008, driven by underwriting discipline and a strong brand. The Reuters F2007/F2008 EPS consensus estimates for LTR are $4.45/$5.34.

The risks? Catastrophic events would hurt LTR's insurance results, as would increased tobacco regulation.

The First Call mean rating for LTR is: Buy. [6 firms.] Mean 2008 target: $55.00. [high: $59, low: $48.]

Stock Analysis: Loews is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from LTR's shares. Sell / Stop Loss if you were to purchase shares in this company: $31.

DISCLOSURE: Joseph Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.