Beyond The Rally: Lingering Challenges For 3M


  • 3M has experienced a recent rally, providing relief to investors after years of poor performance.
  • The spinoff of the healthcare division as Solventum has created opportunities for value crystallization, and more clarity on litigation costs was provided.
  • However, the company still faces challenges with struggling businesses, cash flow pressure from litigation payments, and limited ability to invest.

Prague, Czech republic - May 22, 2017: 3M company logo on headquarters building


Companies that are undergoing changes via corporate restructuring and spin-offs often present good opportunities for value crystallization. I think 3M (NYSE:MMM) has experienced a similar dynamic with the recent rally, giving some relief to investors after three years

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.

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