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JimVanMeerten (57.33)

3M for buy and hold



October 11, 2011 – Comments (0) | RELATED TICKERS: MMM


There are not too many companies that you can say Buy and Hold but 3M (MMM) may be one of them.  The ones you'd like to buy and hold should have an A++ financial strength, a 100 percentile price stability rating, fairly predictable earnings streams and a cash flow that will allow for share buy backs, aggressive R&D, funding of acquisitions and any capital expenditures management deems necessary.  3M has all of those.  Buying these companies on dips is always a good long term strategy.  As this 2 1/4 year weekly trading chart provided by Barchart illustrates now might be the time to acquire additional shares:

Barchart technical indicators:

1 - Short term sell signals in stocks that have terrific price stability can signal a good buying opportunity

2 - Most of Barchart's technical sell signals are weakening and will shortly be neutral if the trend continues

3 - 56% Barchart technical sell signal - weakening

4 - Trend Spotter sell signal is also getting weaker

5 - Trades below its 20, 50 and 100 day moving averages

6 - The stock is 24.31% off its 1 year high compared to the overall market which is 22.41% off its one year high

7 - Relative Strength Index is 43.55% and getting stronger

8 - Barchart computes a technical support level at 71.32

9 - Traded recently at 73.82 with a 50 day moving average of 78.77

Summary:  3M (MMM) is a company that lends itself to a buy and hold or a dollar cost averaging strategy. This would be a very good component for your IRA if you put the stock on a DRIP program and acquire shares over time.

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