An industrial opportunity

Featuring Chad Morganlander

Chad Morganlander, Portfolio Manager at Washington Crossing Advisors, presents his short- and long-term trade on 3M. He explains his analysis, and lays out the trade, in this interview with Justine Underhill. Filmed on June 7, 2018.

Published on
12 June, 2018
Topic
Technology, Trading, US Economy
Duration
7 minutes
Asset class
Equities
Rating
24

Comments

  • RS

    Robert S.

    16 6 2018 03:44

    0       0

    Any rally in this stock is counter trend and be quick to get out if it pops to 215 (gap fill). Below the 50, 200 and 400 day simple moving averages and presently every time it get back to the 50, it gets rejected. There are a lot of people trapped in this name who thought they were buying the dip and can't wait to get to break even and sell. That overhead supply needs to be absorbed before this is ready for a campaign. If you want to be in the industrial space, better to pick something displaying strong relative strength compared to the sector and compared to SPX and with stacked moving averages trending up (i.e. BA, UNP, FDX, CSX, NSC, FTV). Like a carpenter, don't sand against the grain.

  • NI

    Nate I.

    13 6 2018 02:34

    3       1

    10 year sales growth of 2.2% (less than just simple price inflation would allow). 10 year tangible book value declined from $3.93/share to -$3.17/share (thank goodness shareholders can't be billed). 10 year debt growth of 8.8% (hey! found something the 3M management is good at). Luckily 3M is in plenty of ETFs and index funds, so Chad is probably right that the share price will be going up right along side the rest of the debt zombies.

  • DS

    David S.

    12 6 2018 21:59

    0       0

    Trade Ideas interviews are getting better all the time. Thanks. Corporate pension funding, especially in developed markets, is important to address. In a revenue downturn, pensions can sink the ship. Pension obligations and funding shortfalls should be part of the standard checkoff list. DLS

  • DC

    D C.

    12 6 2018 18:43

    3       0

    "If you have a 3- 5 years, we think you can get a 9% aggregate total growth including dividends with 3M" So, that's less than 3% CAGR at best. Truly underwhelming.

  • KP

    Kyle P.

    12 6 2018 13:32

    3       0

    new member here. I am getting so much value in this series from the articulation of stop losses alone. therein lies the question for this trade. 3 elements were mentioned that would result in exiting the trade:
    Global recession
    China's hard landing and possible credit dislocation
    global growth slowing from 3.5% down to 1%

    at the great personal risk of sounding far too simplistic, how does one identify these 3 elements? Even global growth slowing to 1%. how does one measure that? thanks in advance for any advice.

  • PU

    Peter U.

    12 6 2018 12:32

    11       0

    much better music intro!