Have a nice Sunday,
this week I bought $MMM+0.4% and finally $DIS+1.5%? Do you have anything interesting in your sights right now that would be worth watching in the coming week and overbought or, conversely, avoiding the arc?
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I'd like to buy$DIS+1.5% a little lower, but the price is already nice. I will also be buying shares of $MMM+0.4% today.
Sorry, I won't be buying anything today due to the stock market closing :)
In that case, tomorrow :)
I've been refilling 3M, too. The $DIS+1.5% is still around my purchase price, so no change there yet. Both companies have a lot to offer in the future and are now being whipsawed not entirely unnecessarily, but rightfully so.
Consent
Can someone share what your investment thesis is for 3M? There has been virtually no EPS growth in the last 5y and none is expected. Margins are falling, they are not raising dividends, they are facing large fines due to lawsuits that can drag on for years especially in the case of plastics.
Clearly, much of the EPS stagnation at 3M in recent years has been due to the strong dollar, rising costs, high investment and slower organic growth caused by the slowdown in some end markets. 3M management's specific comments clearly confirm this, so it's a matter of time before this beleaguered company picks up again.
Lawsuits are not pleasant, but there's also a tiny chance that it won't be that bad and the fines won't be that bad either. So the thesis is that the lawsuit will go away and thus the uncertainties surrounding it will go away, the fine will be determined, the stock will strengthen again.
They announced a restructuring in 2020 which has not materialised to date and they will prospectively lay off another 7000 people, there are also plans for a spin off of the medical unit which will take some time to consolidate. The strong dollar cannot be blamed for the drop in ROA, ROE, ROIC, margins are also dropping 5y not because of the strong dollar but because 3M is losing pricing power and management is not efficient enough in capital allocation. The legal liabilities for the plugs are estimated at 10-15bn, are their profits in 2-3 years.
I also bought this as a turnaround story a few years ago and while they were being kept afloat by the respirators I didn't realize there were a lot more problems than first appeared. Unfortunately there is no product pipeline where I can see what might drive further growth either, they are obviously reliant on commodity prices and other costs associated with inflation and can't pass that on to the customer.
I'll be watching the $BTI+0.5% moves in particular - probably even buying.
Cool thanks :)