Thankfully I was able to get out of most of my 3M stock in 2020 at $161. Soul crushing knowing that I purchased 3M stock for the past 30 years as part of the GESPP. I have been out of the GESPP for awhile now, but stayed in a lot longer than I should have.
At this point knowing that SOLV will spin on April Fools Day is it better to sell what's left of my 3M stock at $90 and cut the losses, or hang on to get the SOLV shares post split (and more than likely be stuck with 3M in the $50 - $60 range)?
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I exited 3M shares in 2022 and put into GE. Looks like good decision for me as well.
Glad I exited mmm around 225 and put proceeds all into nvidia
A read of the Form 10 filed will provide you with ample "risk factors" for Solventum, ranging from COVID to climate change to sole sourced (3M) to heavy debt load that should lead to a healthy questioning of how well the stock will perform, at least initially... It's pretty easy to see which company "won" the parameters of the spin.
Curious why anyone would come to a layoff board to ask investing advice.
I am not accusing anyone of any wrongdoing, but spinning off part of the company, leveraging it heavily & maintaining a large interest by ParentCo is similar to what Enron did with its special purpose entities.
The "leadership" at 3M cannot be trusted and no company or company piece is investible until enough turnover proves otherwise.
3M stock would improve if 3M had leadership Wal Street trusted. Clearly firms do not trust Mike Roman and Monish on anything they say or do. It's not just the liabilities it is ineffective leadership team at the top as to why 3M share price is languishing. Solventumn is a pure money grab play by the 3M executive team for themselves. A way to try to financially engineer replacement of there losses under there direction. From the untimely purchase of KCI to the billions lost in stock buybacks there has never been worse financial stewardship. There is too mych debt structured in this deal. Worse part is sales and volume continue to shrink because of weak leadership not BOLD action.
I agree, it is being positioned to survive long term unlike Imation. However 3M is saddling it with a lot of debt. The cash flow is decent-to-good, but it will take a few years to pay down the debt to a more typical level.
It still looks like a market cap of around $25B at spin seems right to me.
So there is a clean break for the start of Q2.
It’s a toss up on what to do with SOLV. It does appear to be better positioned to succeed than the Imation spin.
Why did they select to complete the hard spin over April Fools Day?
Long time 3M here. I stopped GESPP post covid,and sold all shares by 2022 at a loss. Redeployed the funds to growing s&p index. Never look back.