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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Wallace Rivers who wrote (62027)	5/20/2019 11:40:31 AM
From: Spekulatius	Respond to of 78667

re MMM - given the likely lack of earnings growth for the next few years, I think a valuation of 10x EBITDA would be appropriate . I think including the latest acquisition, this would be price roughly 20% lower than the current valuation. MMM has its issues, but high debt load isn’t one of them. It is unlikely therefore , that the company implodes like GE did.

To: Wallace Rivers who wrote (62027)	5/20/2019 12:21:10 PM
From: bruwin	Respond to of 78667

Had I been approached with that Rhetorical question I would have said "To make a profit, via a capital gain." MMM'S recent Quarterlies seem in line with its Price performance .... ..... Revenues, EBITDA, Pretax Income and Net Income all declining. Conversely CoS and SG&A rise, which doesn't help the situation. TTM EPS :- (891+1347+1543+1857)/576 = ~9.8 Current P/E about 166/9.8 = ~17. So if Tusa is confident about MMM's future "blue chip" status it will be interesting to see what MMM's financials look like when that happens ....