3M (NYSE: MMM) has been on roll for the last months. AroniSmartInvest in Action™ has included the stock on the list to watch for potential upside opportunities.
First, 3M settled the patent case against Xpel Technologies Corp. With the settlement Xpel TEchnologies will start paying licensing and royalty fees to 3M on the majority of its products.
Xpel Technologies Corp business, like 3M, includes selling automotive paint protection films to clients or resellers. Xpel Technologies had been selling competing clear automobile paint protection film products on the market for years. But 3M was awarded a patent in 2014 and filed its lawsuit in December 2015.
Second, 3M announced in late March 2017, that it is getting out of the majority of the cellulose block business, and instead will focus on the finished sponge business, to fight off increased competition in various international markets.
Then, on April 3, 2017, 3M filed a patent infringement lawsuit in the District of Delaware against Amphenol Corporation, for data transmission cable products.
On April 4, 2017 3M confirmed that 3M had “a binding contract” to sell a 206-acre Oakdale property. The property is bordered by Interstate 694, Ideal Avenue, the Slumberland campus and the Olson Lakes Estates development. According to 3M, the company is selling the land because “it didn’t fit into our strategic plan,”. The land would allegedly be developed for housing and public amenities.
On April 11, 2017, 3M sued K2 Concepts and China-based Phoenix Automotive Refinishing in the Central District Court of California for allegedly violating seven 3M patents and several trademarks and copyrights.
3M Company operates through five technology segments: Industrial, Safety and Graphics, Health Care, Electronics and Energy, and Consumer.
Over the last 12 months, 3M stock has raised from $163.17 to $193.50, or 18.59%, with the P/E ratio of 23.2 and P/B ratio of 10.95. On Feb 7, 2017, 3M hiked its quarterly dividend by 6% to $1.175. With the news surrounding the company's operations, the stock may be expected to sustain its momentum.
