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.
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.
Shares to Qualify = 1 Accept Foreign Accounts: Yes
Auto-reinvestment = yes Temper Enrollment Serv: Yes
Min/Max Investment = $10 - $10,000/quarter
Dividend: 0 Cash: $0 Auto Reinvest: N/A
Wells Fargo Bank Minnesota, N.A.
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
Strong Buy = 6
Moderate Buy = 5
Hold = 4
Moderate Sell = 0
Strong Sell = 0