We are upgrading our recommendation on the shares of Loews Corp. (L) to Neutral. The company’s third-quarter earnings of $1.08 per share was well ahead of the Zacks Consensus Estimate of 87 cents a share. Loews reported a loss of 33 cents a share in the year-ago quarter.   The improved earnings were driven by increased investment income and a considerable reduction in investment losses at CNA Financial Corp. (CNA), besides strong results at Diamond Offshore Drilling Inc. (DO).    While the spin-off of Lorillard in 2008 eliminated the company’s overhang of tobacco litigation and the strong rebound in investment income is impressive, we think that the continuation of a stressed economic environment will have a restrictive effect on the top-line growth of the company.   The recent financial market appreciation bodes well for Loews. Both the holding company as well as the subsidiary, CNA, has experienced

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Are you looking for a stock that is recession proof, generates worldwide sales, and pays a high yield, you may be just looking for a cigarette stock. About 5.5 trillion cigarettes are produced annually and smoked by over one sixth of the world's population. Here are some cigarette companies that have dividends that are smokin'. Vector Group Ltd. (VGR) is a Florida based company that has numerous brands of cigarettes of Liggett, Grand Prix, Eve, Pyramid, USA and nicotine-free Quest. The stock has a PE of 17.576 a PEG of 1.54 , and pays a yield of 9 %. Reynolds American Inc. (RAI) makes and markets cigarettes and other tobacco products including the Camel, Kool, Pall Mall, Doral, Winston, Salem, Misty, Capri, Dunhill, State Express 555, and Natural American Spirit brands. The stock has a PE of 10.901 a PEG of 1.99 , and pays a ...