Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Three Reasons to Take Note of 3M

By

The company holds up, despite its disappointing outlook and the off market.

PrintPRINT
Yesterday I was dead tired and dogging it. Today I have more energy than I know what to do with, even after my early-morning treadmill run.

Asian stocks took a bit of a pummeling overnight. The Hang Seng and the Nikkei were off 1.44% and 1.34%, respectively. European stocks, however, were in positive territory early this morning. And here in the US, we're currently trading higher.

Here's what I'm seeing this fine but rain-soaked Wednesday morning:

3M (MMM):
The company that brings us "Post-Its" offered up its outlook and unfortunately, it wasn't too terrific: It indicated it's looking for $4.50 to $4.55 a share excluding items in 2009. The estimate I'm seeing is $4.57. And for 2010, it's looking for $4.85 and $5 a share, whereas the estimate I see is $4.94.

Some thoughts:

1. If it were to hit those numbers, it wouldn't be the end of the world for a giant like 3M. And something tells me its management may actually be playing it a bit on the conservative side.

2. I also think it's a good sign that it didn't take too much of a whooping, despite the market being off yesterday and the disappointing news.

3. That said, 3M's shares are pretty fairly valued right here and I don't see any real reason to bottom-fish -- and I feel that way even though it could rebound early in today's session. My cautious tune may change, though, if it pulls back to the high $60s or lower $70s.

Texas Instruments
(TXN):
The company was out with its fourth-quarter outlook. Per the release, it indicated it was looking for "EPS: $0.47-$0.51, compared with the prior range of $0.42-$0.50." It also goosed its revenue outlook.

My take:

1. Sounds pretty good, but I'm concerned that some might not see it as strong enough -- the bar is often set pretty high for this company.

2. The outlook was good news and the stock remains one of my top long-term favorites. It could still have some legs here in the short-run too, which is why I view a dip as a potential opportunity.

3. The company has been whipping estimates over the last several quarters -- you have to love that.
< Previous
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE