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    Analytical review of the stocks of the company 3M on 26.02.2016

    3M Company, #MMM [NYSE]
    Industrial products, multi-activity production, USA

    Financial performance of the company:

    Index – DJIA, S&P 500;
    Beta – 1.11;
    Capitalization – 96.20 В;
    Return on asset – 15.10%;
    Income - 4.83 B;
    Average volume – 2.91 М;
    P/E - 20.95;
    ATR – 2.79.


    Analytical review:

    • The company ranks the second on capitalization in the sector of “Industrial products” among the issuers trading in the American stock market.
    • At the end of January, the company reported for Q4 of the fiscal year 2015. According to the press release, in the reporting period net profit of the company fell by 11%, from 1.18 billion USD tо 1.04 billion USD). The rise of EPS (earnings per share) was above the forecast by 1.8% amounting to 1.66 USD.
    • At the press-conference company’s management said that due to weak USD in the reporting period the company’s revenue fell by 5.5% to 7.30 billion USD. Analysts believed that the revenue would be at level of 7.21 billion USD.
    • 3M management said that the company’s performance exceeded analysts’ expectations due to tough program to reduce expenses.
    • In the fiscal year of 2016 the company plans to repurchase shares for the amount of 10 billion USD and increase dividend payment by 8%. Investment will increase by 1.3-1.5 billion USD.
    • Large investment funds and banks (Barclays, RBC Capital, UBS) predict that company’s quotes will go up to 180-185 USD.

    Summary:

    • Company’s revenue in Q4 of the fiscal year 2015 has dropped due to the reduction of sales caused by weakness of the USD. However, the company’s performance was better than the analysts’ expectations. The company plans to make large investments and receive increased dividends this year. Large investors believe that company’s stocks will go up.
    • We expect that in the near future company’s quotes will go up.

    Trading tips for CFD of 3M Company

    Long-term trading:
    at the moment the issuer is traded between the local support and resistance levels of 156.50/159.75 USD. After breaking out and testing of the level of 159.75 USD and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 1% of the capital. Stop order can be placed at the level of 157.00 USD. Take profit can be placed in parts at the levels of 164.00 USD, 166.50 USD and 169.00 USD with the use of trailing stop.


    Short-term trading: on the chart with the timeframe 15M the issuer is traded near the local support level of 158.40 USD. After testing and consolidating mirrored support level of 158.40 USD we recommend to open long positions. Risk per trade is not more than 2.5% of the capital. Stop order can be placed at the level of 157.20 USD. Take profit can be placed in parts at the levels of 160.00 USD, 161.50 USD and 163.00 USD with the use of trailing stop.



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