Colin Cieszynski 3M Co. MMM-N HOLD Aug 07, 2024

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.

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. 

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.

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

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.

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

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