3M: High Risk, High Reward

Summary:

  • 3M has performed badly in the recent past from a share-price perspective.
  • The company is threatened by huge lawsuits that could bankrupt the company in a worst-case scenario.
  • Management might be slightly optimistic, however. The potential rewards in a scenario where major lawsuit losses can be avoided are steep.

Risk and Reward Street Crossing

JamesBrey

Article Thesis

3M Company (NYSE:MMM) is an industrial company that has seen its shares slump over the last year. 3M’s valuation is at one of the lowest levels in its history, and its dividend yield is at one of the

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Data by YCharts

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Data by YCharts

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Data by YCharts


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


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