3M Company – A Quiet Power Leader

3M is what I call a "Power Leader" for the Dow 30 Industrials. The current rally is showing increased strength. That usually leads to a pull-back. There is no sign for MMM Topping.

My previous articles on MMM ( just click) will provide you with the exact history of my Forecasting accuracy.

My Performance for 3M is about 34% per year for the last 5 years. That's per year without dividends. Dividend Yield: 2.50%

My management objective is to identify changing trends for my Forecasting Analytics.

Note: The Difference Between You and the Pros: Clearly you should be profitable and making money by owning 3M. 

Forecast w/ 5 Year Performance

3M Company and other Industrial Sector Companies are tracking well. MMM is in a Power Rally and doing what I have expected. The Company has supported my Forecasts for many years, so be prudent and careful at this time.

(click to enlarge)

My Current Forecast is bright.

If you own or are considering owning Diversified Industry Companies, the securities are currently doing well.

My Current Opinion is to HOLD in anticipation of taking profits.

Fundamentally - ( weighting - - 40% ): My Analytics for my Fundamental - Valuation play a vital role in profitable managing money. At this time my Valuations of (MMM) are not as positive at perhaps you are being told by other sources. Plainly stated they are looking anemic again. This does not make for a positive fundamental valuation of any Company for a long-term Hold.

Technically - ( weighting - - 35%): Even with this fine Company, my Indicators are hanging in there quite well. It is on its highs of $127. The current rally (August 2011 to Date) is getting quite long in tooth.

Consensus Opinion - ( weighting - - 25% ): My third pillar of Research is one that is ALWAYS distorted to the Positive by most all financial analysts. That's because they are afraid of being Bearish. I Am NOT! 

A Twenty Year Perspective of 3 - M Company (MMM)

3M Company (MMM) has taken some big hits over the years. Have a look.

URL for (20-years of MMM:
http://stockcharts.com/h-sc/ui?s=MMM&p=W&yr=20&mn=0&dy=0&id=p72739188011&a=330115409

Selectivity

"Selectivity" separates the Average Investor and Mutual Funds from the profits that come with long-hours, hard work and "Selectivity."

Here are a number of the Component Companies / Peers in the Diversified Industries Industry Group that I focus on rather frequently: (MMM), (GE), (TYC), (ETN), (HON), (SI), (CSL). And, a few more . . .

For a daily input and deeper view of my work, visit my Personal Blog where I post every day. I will promptly reply to questions about my very cautious position for MMM.

Smile, Have Fun, "Investing Wisely,"

Dr. Steve