Chart of the Day: 3M (MMM)

On Friday Barron’s covered US conglomerate 3M with the headline “3M Crashed After Earnings, but One Director Just Bought Shares.” Normally, a director buying after a disaster is actually a way of attempting to rouse sentiment towards a stock.

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This is especially the case given the way that according to stock market rules, if there was anything truly positive in the offing the director should not be buying. However, the stock has so far bounced off a line of support from May last year, and therefore there could be a method in the madness. In addition, even Seeking Alpha, the too clever for its own good publication, has yesterday added “Be Greedy When Others Are Fearful” article on the subject yesterday.

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Overall, this could be one which is indeed, a long haul recovery, or perhaps others will see value in this long bombed out situation. A journey back to the middle of its recent trading range at $190 is possible.

Disclaimer
Zakmir.com is a purely journalistic website – Zak Mir is a member of the National Union of Journalists. There is no intention here of providing financial advice. It is recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.

Author: Zak Mir

Financial commentator, interviewer, technical analyst

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