2016-08-02 14:24:21

3M Company, #MMM [NYSE]
Industrial goods, Diversified production, USA

Financial performance:
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 goods” among the issuers traded in the American stock market;
  • Over the past three months company’s shared have grown by 6.5% due to positive dynamics of the US stock market and good financial results of the company; Last week the 3M Company issued report for Q2 of the fiscal year 2016;
  • According to press-release, company’s revenue fell by 0.3%, to 7.66 billion USD, against the forecast of 7.72 billion USD; at the same time net profit of the company has grown to $2.08 per share against $2.02 for the same period a year ago;
  • At the press-conferences company’s management said that the decline in revenue was caused by pressure from the strong USD. At the same time, the rise in the volume of sales was recorded in Latin America and Canada, Europe and Africa. The index has grown by 4.8% and 3.0% respectively;
  • During the reporting period, free cash reserves of the company has grown up to 2.54 billion USD against 2.41 billion USD for the same period a year ago. Company’s growth potential has increased. 3M is going to invest heavily in the development of prospective divisions of the company.

Summary:

  • Company’s last report showed that management of the company is on the right track. Company’s revenues have dropped slightly due to pressure from the strong USD. However, earnings per share (EPS) have increased. The company has strong growth potential.
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of 3M Company

Key levels:
Support levels: 177.00 USD and 174.10 USD.
Resistance levels: 178.85 USD, 180.40 USD and 182.15 USD.

Medium-term trading, Н1
At the moment the issuer is traded in the demand zone of 177.00 - 178.25 USD. If the price maintains this zone 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 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 181.50 USD, 183.50 USD and 186.00 USD with the use of trailing stop.

Medium-term trading, Н1
Medium-term trading, Н1



Short-term trading, М15
The issuer is traded between the local support and resistance levels of 177.20/178.45 USD. It is advisable to enter the market after breaking out and testing of these levels. Positions shall be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short-term trading, М15
Short-term trading, М15