John Stephenson3M Co.MMMHOLDOct 29, 2014

It reports Tuesday. The new CEO is turning things around and he likes the stock ahead of the quarter.

Take profits. Now that clouds have cleared, left with a lower-growth multi-industrial. Invest in a more structurally sound industrial company such as HON or the pieces of the former United Technologies.

They report soon and he expects a good report, but nobody will care. Big internationals are frowned upon, unless you hold through the cycle.

He bought it at 12x PE, now at 19x. The new CEO demonstrates they can change their business.

So much is about sentiment and the street expects a massive cut to earnings. We haven't seen their full-year estimates. 

They're in the second inning of their turnaround, and shares remain cheap. Expectations remain low.

It's a turnaround story, so he initiated a position. He is selective in industrials, because they trade at a 24x forward PE, higher than the S&P.

It trades at only 17x PE in 3M, and it runs a diversified business.

Wait. Don't enter this now. Wants to see more clarity. Shares are climbing after a long malaise and they have a new CEO. But hey have legacy problems with a chemical and a huge lawsuit, and the noise suppression technology lawsuit. These types of companies do turn around, but he'd rather pay more for more certainty.

Large industrial with a medical component, and she likes that. Good job getting back on track. Dividend cut earlier this year.

She focuses more on Canadian companies, so take a look at CCL.B. 

Long-term underperformer and base-building, recently broke out. Resistance levels started to fall, one by one. Then big pop on earnings. One of the top-ranked stocks on RSI in the US universe, acting extremely well. Quite well supported, even through the correction of last week.

Last Friday, the CEO walked about areas that could see cost cuts and many segments that could grow faster. MMM is part of the rally broadening out of tech.

Just reported: beat earnings and revenues and free cash flow. Also, they guided a little higher. The CEO is focused on growing organic growth, free cash flow and operating margins, which is what happened and will do. She would still buy it.

He thinks the CEO can continue to turn things around and expand operating margins.

The new CEO is doing what he must and has a good track record from L3Harris.