3M Stock

[Sheryl]

I've owned MMM for about 7-8 years. It's one of very few individual stocks I've ever bought. Up until about April of this year it had very nice, gradual growth and a decent dividend.

Something happened at that point and it took a big hit. Since then it has continued to struggle - even dropping now as the market climbs.

I can't find any obvious reasons for what is going on. This is/was a buy-and-hold sort of thing for me, and I'd really hate to take a big captial gain hit by selling it at a low point, but I'm starting to wonder if there is something I am missing.

I'm not asking the board to do my research for me, but I would appreciate any advice about what sources to use and what information to look at in order to make an informed decision.

Thanks!

 

[brewer12345]

I guess I'd start with the obvious and suggest a careful reading of their SEC filings. I'd also listen to the recording of their last earnings conference call, especially the latter part where analysts ask questions. I'd also see if your broker offers any free research reports on th company: not taht you'd actually follow the idiot's analyst's recommendation, but you might be able to glean the excuse for knocking the stock down.

Ultimately, if you can't find anything, you might decide to just hold it. Nothing wrong with that if the drop is just an anomaly.

 

[dkpearson]

You've probably doubled your money by now.....and must be getting an almot 6% yeild on your original investment?  That's not too bad...

I'm in the drip....and have been adding little bits on this weaknes...every time I go shopping it seems there's something we buy that these guys make....and they keep coming up with new sources of revenue.....

...dan...

 

[maddythebeagle]

I also drip 3m. I think the recent slide was mostly from the CEO leaving for Boeing and some to energy costs. It has bounced back. I think the best way to follow it is not to follow it too closely and ignore the “noise”.

 

[Sheryl]

Thanks, all, for the comments. I never thought of listening to the earnings call Brewer... duh.

Yup, Angst, I'm a little over double, but don't have a DRIP. Have enough there as it is (about 4% of my total assets, yikes!)

So true, Maddy, about not following too closely. I didn't pay too much attention for years, but now that I've become obsessed with FI/RE and have been spending a lot more time counting my money I've started worrying about it more, too. I need to chill out and find something else to do while it grows all by itself.

 

[brewer12345]

Yup, Angst, I'm a little over double, but don't have a DRIP.  Have enough there as it is (about 4% of my total assets, yikes!) 

Heheh, 4% is not enough to sweat over. I have almost 15% in one stock (PPD). This is due to appreciation, and I am looking to sell off some soon to reduce my exposure.

 

[Mr._johngalt]

Heheh, 4% is not enough to sweat over.  I have almost 15% in one stock (PPD).  This is due to appreciation, and I am looking to sell off some soon to reduce my exposure.

Well, I have about 33% in "junk bonds". Cojones?

JG

 

[maddythebeagle]

Well, I have about 33% in "junk bonds". Cojones?

Would that mean you have "too much junk in the trunk"?

 

[Sheryl]

Well, I have about 33% in "junk bonds".  Cojones? 

JG

But not all one source of junk, right?

 

[AltaRed]

I do not feel comfortable with more than 5% of a portfolio in any one investment, never mind 10% or 15%. Although like brewer, I am now up to 8% in my company's stock due to significant price appreciation in 2005. Will be time to take some of that off the table in 2006 (already have enough realized capital gains for 2005).

 

[Mr._johngalt]

But not all one source of junk, right?

True!

JG

 

[Sheryl]

I do not feel comfortable with more than 5% of a portfolio in any one investment,  never mind 10% or 15%.  Although like brewer, I am now up to 8% in my company's stock due to significant price appreciation in 2005.  Will be time to take some of that off the table in 2006 (already have enough realized capital gains for 2005).

I totally agree for single stocks, but I think it's a different story for funds.  I have almost 11% in Fidelity's Low Priced Stock (FLPSX).  I can't think of any better place to put that money right now.

 

[AltaRed]

Agree that diversified funds are different. That is one reason for them in the first place.

 

[brewer12345]

I do not feel comfortable with more than 5% of a portfolio in any one investment,  never mind 10% or 15%.  Although like brewer, I am now up to 8% in my company's stock due to significant price appreciation in 2005.  Will be time to take some of that off the table in 2006 (already have enough realized capital gains for 2005).

Since I am in the accumulation phase, I am willing to go up to 10%, especially via appreciation (new positions are usually 5%). 15% is over the top even for me. I am waiting for a specific event to take money off the table. The company in question has a large short interest and has announced that they are negotiating a bank loan deal that will allow them to tender for roughly 25% of the float. I will happily sell once they announce the tender or shortly after.