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Thursday, 03/11/2001

MMM - Minnesota Mining & Manufacturing (3M)

Company Description

3M is a $17 billion technology company with leading positions in electronics, telecommunications, industrial, consumer and office, health care, safety and many other markets. When it comes to innovation, 3M knows that the most fundamental technological elements can be transformed into astonishing innovations that help create the future as much as they build on the past.

In countless combinations, 3M technologies come together as core elements of innovative new products, making them simple to use, yet complex enough to help make the world smarter, healthier, safer and better. Through a history of innovation, 3M has established and maintained leadership in its major markets, while generating solid sales and growth.

3M is committed to increasing shareholder value through a sharp focus on product innovation, customer satisfaction, productivity improvement, and effective asset management.

(source: 3M)

Reasons To Invest

Shares of Minnesota Mining & Manufacturing (3M) represent a compelling investment at current levels for several reasons. It should come as no surprise that the broader U.S. economy has slowed dramatically, and the tech and telecom sectors appear headed for a recession. But, several old economy names are showing signs of life, such as 3M, which is among the most respected old economy names in the marketplace. The rebirth of the old economy, cyclical names stems from the benign monetary policy adopted by the Federal Reserve. The increased liquidity and lower cost of capital is benefiting 3M and should continue to do so for years to come.

With its broad and diverse operations, 3M can weather any downturn in the tech-related segments of the economy while managing profitability with its service-related operations, such as health care. In addition, the company recently announced that it had lured a famed and achieved former General Electric executive, James McNerney, to head up the company. The simple fact that a former GE executive is now heading up 3M caused the stock to surge the day of the announcement.

The reason there was such excitement is that McNearney, and his GE inspired abilities, are expected to collectively begin to impact the bottom-line of 3M. For instance, McNearney recently gathered a team of his executives in order to implement a $600 million cost cutting program. McNearney should continue to improve upon 3M's attractiveness and increase shareholder value over the long-term.

Finally, as a testament to the long-term stability and financial reliability of 3M, the company recently announced that it had increased its quarterly dividend. While the announcement may have seemed mute, the occasion reminded us that it was 3M's 43rd consecutive year of increasing its dividend. Additionally, 3M has not missed a quarterly dividend payment during its last 85 years of operation.

DRIP Information:

Shares to Qualify = 1            Accept Foreign Accounts: Yes
Auto-reinvestment = yes          Temper Enrollment Serv: Yes

Min/Max Investment = $10 - $10,000/quarter
Reinvestment Fees:
Dividend: 0        Cash: $0      Auto Reinvest: N/A

Transfer Agent:

Wells Fargo Bank Minnesota, N.A.
Shareowner Services
Dividend Reinvestment Department
161 North Concord Exchange
P.O. box 64856
St. Paul, MN 55164-0856

Industry Group:    Conglomerate   52-week high=$122.94
Annual Dividend Per Share=$2.40   52-week low =$ 78.19
Last earnings 12/00    est=1.20   actual=1.12
Next earnings 03-18    est=1.17   versus=1.13
                                  P/E = 25

Analyst Ratings:
Strong Buy    = 6
Moderate Buy  = 5
Hold          = 4
Moderate Sell = 0
Strong Sell   = 0


Copyright 2003

Do not duplicate or redistribute in any form.
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