3M Company (MMM) | Technically ready!3M Company (MMM)
3M is a multinational conglomerate that has operated since 1902, when it was known as Minnesota Mining and Manufacturing. The company is well known for its research and development laboratory and it leverages its science and technology across multiple product categories.
As of 2020, 3M is organized into four business segments: safety and industrial, transportation and electronics, healthcare, and consumer. Nearly 50% of the company's revenue comes from outside the Americas, with the safety and industrial segment constituting a plurality of net sales. Many of the company's 60,000-plus products touch and concern a variety of consumers and end markets.
A quite good dividend stock has arrived at the destination, hopefully :)
MMM has come down from its all-time high of more than 60%. So, to buy this you need to make also a bit of work with fundamentals but technically, as said, it has arrived inside a possible buying zone.
The technical criteria are:
1. Old resistance back in 2004 to 2012, starts to act as a support level. Yes, you can and actually you have to look back as far as possible to determine the strongest areas on the chart. The world has changed but human psychologic is still the same!
2. Mentioned many times that you have to keep an eye on the round numbers. Here is also the round number $100 and it matches with other criteria.
3. Channel projection, white lines. Typically the price moves inside the channels and sometimes it helps to find a decent support level. Currently, the projection runs nicely through the optimal buying zone.
4. Equal waves (AB=CD) and the D point, which completes the pattern, staying inside the buying zone.
5. All-time Fibonacci Golden ratio 62%. Basically draw from an all-time low to an all-time high and the Golden ratio is also there to add a bit of strength to the possible reversal area.
Technically an optimal buying zone could be $80 - $102
First targets $135-$150
Good luck!
Dividend
How I go about Dividends as a Trader!Q. “In your view how do you go about with dividends as a trader and as an investor? Do you buy to chase dividends when they are declared or not?
A. As a position trader (short term holder), I'm not really interested in buying companies for the dividends released.
That’s because I prefer to make money in the short term with the trades I take, according to my short term strategy and analysis.
But if I did have an investor mentality and I wanted to take advantage of buying companies for dividends, I would do a number of things.
These include:
First I would do my own thorough research and due diligence on the company's overall financial health and performance.
Second, I would look at the dividend history of each company to see more or less what I would have earned over the last couple of years.
Also, if you look at the history of the dividend, it will help you determine whether it's a reliable company to buy.
I personally don't believe it's a good idea to chase dividends with stocks.
I have also never met anyone that makes money chasing dividends in the short term.
The problem is when the dividend is released, the share price tends to drop quite significantly.
And you could end up losing more money because of the share price drop, rather than the money you gain through the dividends.
This means, you could be stuck holding onto the shares and positions for the next couple of weeks or even months, waiting for the price to recover.
Reply: *Hey Timon, thanks for comprehensive respond. It cleared my confusion as a trader when it comes to dividends.
WFC - Bearish but Dividend PendingWFC is up about 10% over the last month and even more since Dec of last year, however the weekly price closed down last week, and is now down two weeks in a row. Several bearish indications are suggesting a pull-back in price. However WFC will issue a dividend payment to shareholders on March 1st which is supporting the current price. Overall the WFC price appears to be breaking down/out of a multi-week wedge. I see limited upside and near term downside due to QT effects and overall liquidity issues in the market, and more specifically for WFC due to the reasons listed below.
1. High volume resistance associated with a significant +12% sell-off week of Feb 5th 2018. That week WFC had closing price of $47.57 and a low of $47.35. WFC has tried and failed to move through this area for the last three weeks.
2. Significant sell off at/near current price occurred in early 2020 - associated with 'global liquidity issues' a few months before the COVID crash. Week of Jan 13, 2020 WFC's price dropped over 6% on significant volume, falling from $48.35 to $45.28 adding significant resistance at/near current price range.
3. Trendline resistance - Trendline drawn off Jan 2018 and Nov 2021 highs and other significant trendlines continue to cap current price. Further, mid-line regression trend resistance is in-play as measured off the Oct 2020 low.
4. Potential double top formation. A double top with a re-test of the recent Nov 22 highs is currently in play/occurring for WFC.
5. Bearish Volume Trends - Buyers appear to be exiting in mass on the weekly timeframe. Similar trend as seen in late 2022 and early 2023 when the WFC price dropped by over 20%.
Also of note - WFC was one of the stocks that dropped like a rock at the open on January 24th of this year and was "halted" with many trades being cancelled - not exactly sure what happened that day but I see it as a potential sign of things to come. Generally looking for WFC to move down during March 2023 after the $0.30 dividend payment on March 1st. NFA!
Future of RIO, BHP and the sectorI have had a pretty large position in RIO and BHP since end of July 2022, I bought expecting the market to recover and for copper/iron demand to jump from the re-opening of China and the rest of the world. These positions have given me quite the return with their pretty high yields.
Having said this, we can see that the steam from the market's comeback has slowed down, copper, iron and ore prices in general have met some resistance and both RIO and BHP have taken a step back from their highs. I don't think there is much more gain to be made with these stocks even though their structure and their fundamentals are highly attractive.
I like to invest in one sector at a time, trying to spot which one will be the next to glow up. I think the mining and refining sector has had it's run. Therefore, I'll most probably be exiting my positions in both these companies after collecting dividends and the most probable upside from the upcoming earnings.
Extra:
I am mostly exiting my position because of what I said above, but I've slowly started to consider the rising tensions between China and the western world. Though sanctions would be an economical blunder for everyone in play, having your biggest consumers be in a cat fight is certainly not preferable for business.
Looking back at equity factors in Q4 with WisdomTreeAfter three negative quarters, 2022 closed with a bang. Equities around the world delivered very strong returns in both October and November on the back of relatively good news on the inflation front. Therefore, despite a negative December, developed market equities gained 9.8% in Q4, and emerging market equities gained 9.7%.
This instalment of the WisdomTree Quarterly Equity Factor Review aims to shed some light on how equity factors behaved in this rebound and how this may have impacted investors’ portfolios.
Overall factors performed strongly for Global and US investors. Only Growth delivered an underperformance in Q4.
Value, High Dividend and High Quality dividend payers delivered the strongest performance in both regions.
In Europe, Small Cap stocks performed the best, followed by Value and High Dividend stocks.
In emerging markets, Value and High Quality dividend payers delivered the strongest outperformance.
Looking forward to 2023, the same issues that drove markets in 2022 remain. While inflation has shown signs of easing, we expect central banks to remain hawkish around the globe as inflation is still very meaningfully above target. In an environment where interest rates and inflation remain high, and volatility of both equities and interest rates is increasing, we continue to tilt toward High Dividend, Value and High Quality dividend payers.
Performance in focus: High Dividend and Value finish strong
In the fourth quarter of 2022, equity markets posted their first positive quarter of the year across regions. In October and November, markets benefitted from positive inflation numbers and increased hopes for a Fed Pivot or at least a pause in rate hikes leading to a sharp rebound. MSCI World gained 7.2% and 7% in those two months, respectively. However, hopes of such a pivot were dashed quickly, with the Federal Reserve Chair making clear in the December Federal Open Market Committee (FOMC) meeting that he wanted to see “substantially” more progress on inflation before the hiking would stop. This led the MSCI World to lose -4.3% in December.
Overall, factors performed strongly for Global and US investors:
Only Growth delivered an underperformance in Q4 in US and global equities
Value, High Dividend and High Quality dividend payers delivered the best performance across regions but mostly in the US.
In Europe, factors had a more difficult time. Small Cap stocks performed the best, followed by Value and High Dividend stocks but Quality, Momentum and Min Volatility delivered underperformance.
In emerging markets, Value and High Quality dividend payers delivered the strongest outperformance. In this market, Quality, Momentum and Min Volatility also delivered underperformance.
In Q4, the market environment continued to discriminate strongly between Quality stocks. The definition of Quality and the criteria used have hugely impacted the result. Quality, left unattended, tends to tilt toward growth (investors pay for Quality, after all) and would have suffered from that tilt, as illustrated with MSCI Quality (‘Quality’ in Figures 1 and 2). Highly profitable companies and dividend growers have fared better this quarter, as illustrated by WisdomTree Quality.
2022, the year of the dividends
Looking back at the whole year, High Dividend has dominated the factor space consistently across the year. It delivered a 13.4% outperformance to the MSCI World and a 15.2% outperformance versus the MSCI USA. In Global equities, Value and Min Volatility completed the podium with 8.3% of outperformance. In the US, the podium is a bit different, with WisdomTree Quality (that is, High Quality dividend payers) finishing second (+11.4%) and Min Volatility and Value coming third and fourth. In both regions, Growth and Quality (with its growth tilt) were the only factors to deliver underperformance. In Europe, High Dividend and Value also dominated the field.
Valuations rebounded in Q4
In Q4 2022, valuations rebounded across the board on the back of markets’ positive performance. Small Caps saw the largest increases with +1.7 in Global and European equities and +2.2 in US equities. European and Emerging markets remain quite cheap, leading to factors being cheap as well. Emerging market value is currently priced at a 4.9 P/E Ratio.
Looking forward to 2023, recession risk is continuing to rise. The International Monetary Fund (IMF) is warning of a recession in the US, a deep slowdown in Europe, and a drawn-out recession in the United Kingdom. While inflation has shown signs of easing, we expect central banks to remain hawkish around the globe as inflation is still very meaningfully above targets. The Federal Reserve made clear in its December meeting that ‘substantially’ more progress will need to happen on the inflation front before hiking stops. The European Central Bank (ECB) projections show inflation is unlikely to reach the 2% target until late 2025, leading to a hawkish turn there as well. The Bank of Japan also surprised markets in December with its own hawkish move. Overall, as we transition to 2023, three questions still remain unanswered from 2022: 1) how sticky will the underlying inflation be 2) how intense will the recession be 3) will we find a solution to Europe’s energy crisis?
With markets facing the same issues in 2023 that they faced in the second half of 2022, we continue to tilt toward the strategies that delivered for investors in 2022, that is, High Dividend, Value and High Quality dividend payers.
Please note:
World is proxied by MSCI World net TR Index. US is proxied by MSCI USA net TR Index. Europe is proxied by MSCI Europe net TR Index. Emerging Markets is proxied by MSCI Emerging Markets net TR Index. Minimum volatility is proxied by the relevant MSCI Min Volatility net total return index. Quality is proxied by the relevant MSCI Quality net total return index.
Momentum is proxied by the relevant MSCI Momentum net total return index. High Dividend is proxied by the relevant MSCI High Dividend net total return index. Size is proxied by the relevant MSCI Small Cap net total return index. Value is proxied by the relevant MSCI Enhanced Value net total return index. WisdomTree Quality is proxied by the relevant WisdomTree Quality Dividend Growth Index.
AAP BreakoutBLUF: 20% swing for 2 months at a 5% risk with the potential for a trend breakout.
Whether or not you "believe" in a recession in 2023, the idea of one on the horizon should alter how we pick stocks. Jim Cramer has been pushing bargain retailers for months and TJX is up over 40% since May of 2022. Taking the idea of a recession and the movement of money into the bargain or overstock companies can lead us to the auto industry. Benzinga posted on 30 Dec, 22 how much the major car companies have been down. With the decrease in consumer spending on vehicles, the idea here is that the money will shift from new cars to repairing current vehicles through auto parts stores. The three big companies focused on keeping used cars running are Autozone (AZO), Advance Auto Parts(AAP), and OReilly Automotive (ORLY).
AZO and ORLY have been performing nicely for multiple years, while AAP is at its Jan 21 low. The company president and CEO stated in the Q3 earnings report that "we're not at all satisfied with this outcome (lagging top-line growth)" and "as we develop plans for 2023 and beyond, we've done a deep dive on the competitive environment and the actions necessary to accelerate growth". This could be the inflection point and turn the company around from a leadership and financial perspective.
Turning to the chart. The stock has been following a negative trend since January 2022. The stock has tested and bounced off the $143 low from January 2021. Since this decline began, it has tested the lower trendline and rebounded sharply to the upper trendline lasting, 56, 60, and 36 days.
I believe the stock has the chance to continue trending toward the upper trend line over the next two months. If it can break the upper trend and we see continued signs of a recession, it could break out of the negative channel AAP is currently in.
The downside is about 5.5% to the recent lows with a 20% upside to the upper trendline.
The stock also has a 4% dividend.
During high inflation focus on high pricing power equities2022 continues to prove difficult for investors around the globe. The conjunction of heightened geopolitical risks, increasingly hawkish central banks, and runaway inflation has forced many investors to change tack and modify their asset allocation significantly over the last 12 months. Duration has been lowered across asset classes, and a survey we commissioned1 recently revealed that 77% of European professional investors use equities to hedge against inflation.
Fighting inflation by wielding Pricing Power
Not all equity investments are equal in the face of inflation. The key differentiator is their ‘Pricing Power’. Pricing Power describes the ability of a company to increase its price without impacting demand or losing market share to competitors. In an inflationary environment, margins are under pressure because companies ‘import’ inflation, whether they want it or not. Overall costs for the companies increase through labour, supply, or energy. The only tool to mitigate the impact of inflation on margin is to increase prices. Companies with Pricing Power will be able to do so the most efficiently. Certain types of companies tend to have higher Pricing Power:
Companies that deliver essential services tend to wield a lot of Pricing Power as they have somewhat captive clients. This is the case for many companies in the Consumer Staples, Healthcare, Utility, or Energy sectors.
Companies that deliver high-quality products or services and possess a distinct competitive advantage can also increase prices efficiently.
Luxury goods companies benefit from their clientele's relatively low price sensitivity.
Some companies can benefit from favourable supply-demand dynamics at a particular point in time. This is, for example, the case of semiconductors in 2021 or energy companies this year.
History is the best guide to the future
As is our habit when trying to assess the future, we turn to the past for guidance. The below graph focuses on US-listed stocks since the 1960s. It assesses the average outperformance or underperformance of different groupings of stocks, since the 1960s, when inflation is higher than the last five-year average. We observe that, on average:
High Quality stocks weathered inflation better than Low Quality stocks
Value stocks beat Growth stocks
High Dividend stocks outperformed Low Dividend stocks
Small Cap and Low Volatility did better than Large Cap or High Volatility companies
Overall, High Quality, High Dividend and cheap stocks appeared to fare better in high inflation environments.
The same analysis on sectors shows that Value-orientated, High Dividend sectors also tend to do better against inflation. Energy, Healthcare, Consumer Non-Durables (Food, Tobacco, Textiles), and Utilities exhibit the strongest average outperformance during high inflation.
It is clear here that the quantitative data aligns with our qualitative assessment. The factors and sectors that historically outperformed when inflation was high are those that have the greatest chance to harbour high Pricing Power companies. This should give investors indications on how they could tilt their portfolio to fight inflation.
Quality and Dividend Growth to fight inflation
In light of the unique challenges equity investors face, High Quality companies focusing on Dividend Growth could help strengthen portfolios. High Quality companies exhibit an 'all-weather' behaviour that tends to deliver a balance between building wealth over the long term whilst protecting the portfolio during economic downturns. Dividend-paying, highly profitable companies tend to:
Exhibit higher pricing power allowing them to defend their margins by passing cost inflation to their customer.
Exhibit lower implied duration, protecting them in a rate-tightening environment, thanks to a focus on short-term cash flows.
Provide a defensive tilt and an enhanced capacity to weather uncertainty.
$T - Recession? Food, Water, Shelter... Cell Phones - TA & FADid some TA & FA today on a long-term & dividend play I like. AT&T ($T). Are we in a recession, is a recession coming, will things get worse before they get better? People need cell phones. Food, water, shelter, then what? Cell phones! If you are looking for a safe play to start DCA'ing, IMO this is about as good as it gets for a safe, long-term opportunity given the current market.
Let me know what ya think, cheers!
AGNC new bottom?Here we have a MONTHLY chart for $AGNC, a mid-cap monthly paying dividend REIT (Real estate investment trust).
As you can see we breifly wicked to this price before and if you switch to a daily chart there is some evidence for a recovery.
That being said, with the increasing rates from the FED, housing prices starting drop as demand lowers, and combined with higher material cost for building homes (starting to shrink), it seems likely we'll see a bear rally, followed by another "bullwhip effect", particularly driven by new homes or lack there of.
If you google, "is agnc a good stock to buy", the analysists expect it to reach "$11.86 by Oct 5, 2023" which means you'd effectively double your money in a year, while also receiving ~$12/month for every 100 shares (~$800). Although I disagree and suspect that AGNC will be at best ~$9-10 by that date, I still feel like that this is a great time to SELL PUTS as a means to get paid to DCA into the stock. That being said, I could see the stock reaching as low as $5/share so be careful and DYOR...
Sasol, weakJSE:SOL has been trading below a key MA since early July, it showed characteristics of a Stage 3 setup. A selloff was seen on the ex divi date, and some market participants were comfortable to assume that the selloff was due to ex divi, fair enough. The dividend has been paid now, JSE:SOL is now below a minor support level, it it continues with the downward movement, it may test R290/share
MMM 3M Company 141K Calls, $200 Strike Price, Expiring Sept. 16!I don`t know if you monitored the Option Chain last Friday.
I always do that for my clients and I was shocked to see for MMM 3M Company 141K Calls with $200 Strike Price, Expiring Sept. 16!
On Thursday we had 70K calls, same expiration date and strike price.
It has to do something with 3M's Healthcare Spinoff which sees Roadblock from Veterans, which sued the company to block its planned spinoff of the healthcare business.
I bet the call options buyers are thinking that the spinoff will be approved in court by September 16.
The stock is one of the Dividend Kings, the company has increased its dividend for 65 years and the Forward Dividend & Yield id 5.96 (4.90%).
At this oversold level, with the RSI at 22, i wouldn`t be surprised to see at least a technical bounce to $130, if not even higher.
Looking forward to read your opinion about it!
AT&T - Future Growth and DividendsAT&T (NYSE:T) shares recently fell by approximately 10% after the firm released its second-quarter earnings. Despite better-than-expected earnings per share and revenue, excitement was muted by cash flow issues. Following the current drop, AT&T's stock yields around 7.3 percent. Furthermore, AT&T is dirt cheap again, trading at approximately 7.4 times forward EPS expectations. The market may be overreacting because the most recent earnings report was strong, and the cash flow decrease is most likely a one-time occurrence.
AT&T Financials
Furthermore, the corporation has set a clear strategy for future growth over the next several years. Furthermore, AT&T is recession-proof and may profit from a management shuffle. AT&T's downside looks to be limited, and the stock is appealing in this environment. Multiple growth and other factors might cause AT&T's stock price to rise significantly from here while also paying a sizable dividend.
AT&T announced non-GAAP earnings per share of $0.65, above average projections by $0.03. Revenue of $29.6 billion was also $130 million more than expected. During the quarter, the business added over 800,000 postpaid phone net adds and over 300,000 AT&T Fiber net adds. While AT&T raised its mobile service revenue forecast to 4.5-5 percent, it lowered its free cash flow forecast to the $14 billion range. The headline statistics for AT&T are impressive, but the cash flow drop is depressing. Cashflows are being impacted by heavy expenditures in 5G and working capital requirements. However, inflation is most likely a role, and when the economy recovers, AT&T's cash flow problems may be resolved rapidly.
AT&T's figures were pretty strong. Revenues from standalone companies were $29.7 billion, up 2% from $26 billion in the same period last year. Adjusted EBITDA increased by $175 million, or 1.7 percent, year on year. In the most recent quarter, standalone adjusted EPS climbed by 1 cent to 65 cents. Perhaps most critically, AT&T's core Wireless Service expanded by 4.6 percent year on year and is expected to rise similarly in 2022 and 2023. In addition, we observe certain FCF remarks implying that the decline in FCF is a transient event. While AT&T's performance have remained excellent, and the company has demonstrated persistence in exceeding consensus analyst predictions in recent quarters, this has not prevented the stock from underperforming its competitors.
AT&T's stock has underperformed the market, falling nearly 32% in the previous five years. AT&T's nearest competition, Verizon (VZ), is up marginally over the same time period. T-Mobile US (TMUS) is also higher, while Comcast (CMCSA) has destroyed the competition over the previous five years. If we extend the picture further, we see that AT&T's is down by around one-third during the last 10 years.
How much longer will shareholders have to wait for a genuine management revamp? For many years, AT&T's management has done nothing useful with the corporation. For decades, AT&T's stock has been worse than dead money, and it currently trades at the same price it did in 1996. AT&T has become extremely inefficient and has devolved into a bureaucracy that must be changed fast. AT&T requires new management to restore order and return the firm to growth and profitability. AT&T's previous regime, which we don't want. We'd like an expert. We are looking for someone who will offer a unique perspective and creativity to AT&T. We need someone to turn AT&T around and bring the firm back on track. A management revamp would likely be welcomed by the market.
High Dividend Yield
Furthermore, with its extremely low forward P/E multiple of 7.4, AT&T might experience a slight multiple expansion, resulting in a much higher stock price as time goes on. Even a P/E multiple of nine times, as Verizon has, would result in an increase of around 18% for AT&T. If the company's P/E multiple rises to 10, its share price will grow by around 30%. also, because of the dividend and the potential for numerous expansions. We recommend owning AT&T
Last Chance to Buy VFCThis is an update to my original post (see below). This recommendation is not for day traders, but for long-term investors, especially dividend investors.
VFC has just tagged its yearly basis line on the Bollinger Band. This means that VFC has fully corrected to its mean on the yearly chart. This is an incredibly rare buying opportunity.
It is quite likely that price will begin a major long-term cycle back up one standard deviation. This means that you have the chance to enter a high dividend stock with a 100% upside potential in price over the next several years. Recession or no recession, according to the chart, this price has nowhere but up to go.
However, always use stop losses as the market can be irrational.
See the original post here for more details:
BHP - Awaiting for buy opportunitiesG'day Traders and Investors,
Note: Before reading this, I would like to declare that this is not a financial advice, I am not financial advisor. Any mentioned information is for education and entertainment purposes only and based on my trading and investing strategy. . I may or may not act according to this analysis.
Facts:
- As of 2022, BHP is the largest mining company in Australia, by market capitalisation and It is one of the very profitable business as
most of BHP products are essential for global economic growth.
- The company primary operational units are: Coal, Copper, Iron ore and Petroleum. But many are key to the energy transition, to
lower carbon world, for example:
Copper - has electricity conducting, corrosion resistance and antimicrobial properties and is used in everyday household products.
Iron ore - is one of the most sought after commodities in the world and is integral to the steel-making process.
Nickel - is a key ingredient is stainless steel and major component in the lithium-ion batteries that are helping power the electric
vehicle revolution.
Potash - is a group of potassium compounds that will be vital link in the global food supply chain.
- BHP also committed to Sustainability and Social responsibility. Read more on www.bhp.com
Source: www.bhp.com
If you like the idea, please like and comment. Many thanks for your support.
Cheers!
Jimmy
MapleTree Industrial Trust REITS - longWeekly descending wedge - If it breaks out of the descending wedge, we can see a strong push to the upside.
MapleTree Industrial Trust (MIT) owns data centre assets in North America and Singapore. Data centres have been gaining prominence and MIT has been pursuing more growth by leveraging on acquisition of data centres.
The total addressable market size of data centre in Singapore alone, in terms of spending opportunity, is expected to increase at a compound annual growth rate (CAGR) of 6.1% between 2020 and 2025. Thus there is more potential for growth for MIT. I believe this is a long term hold, and dividend yield is 4.46%, which is not bad at all.
Gross revenue has been consistently increasing for past 5 years (average 7.07% for year 2017 to 2021).
Assets has also been on an uptrend since 2017. Total valuation of the 115 properties held by MIT is S$6,762m, and 41% of those at data centre.
Occupancy has also increased from 90.9% to 92.6% overall from 2020 to 2021.
Tenancy are also diversified across different trade sectors such as manufacturing, retail trade, financial and information & communications.
Long term PT is 3, then 3.3.
I think a great area for buying would be 2.4 range.
However, it is in a weekly descending wedge. If it does breakout strongly, I will look to buy in on retest of breakout area.