Source: PaxForex Premium Analytics Portal, Fundamental Insight

There are several compelling reasons to consider investing in 3M, notably its substantial 5.7% dividend yield. This impressive yield is supported by the company's remarkable track record of annually increasing its dividend for an impressive 65 years, placing it among the elite ranks of Dividend Kings. These factors played a significant role in the decision to invest in 3M initially.

The roots of 3M date back to 1902 when the company was established to mine a specific mineral, albeit unsuccessfully. Despite this setback, 3M demonstrated resilience from its inception, swiftly adapting to challenges. This resilience has become a fundamental aspect of the company's identity, evident since its early days.

A pivotal moment for 3M occurred in 1914 with the launch of the Three-M-ite Abrasive Cloth, an exclusive product that garnered considerable success. This marked the beginning of 3M's emphasis on internal research and development, with the establishment of its first R&D facility in 1916. Subsequently, the company experienced accelerated growth and diversification across various business segments.

Fundamentally, 3M has remained steadfast in its commitment to innovation and branding, consistently developing and marketing a vast array of products. Presently, its portfolio encompasses thousands of products spanning sectors such as safety and industrial, transportation and electronics, consumer goods, and healthcare.

While 3M has faced challenges in recent times, its resilient history suggests it is capable of overcoming adversity. Although the company may not be operating at peak performance presently, its enduring track record indicates its ability to weather difficulties. However, it's essential to examine the specific challenges confronting 3M today.

3M's recent business performance has been lackluster, reflecting a period of stagnation. However, this is not uncommon for companies with long operating histories; they inevitably encounter both prosperous and challenging phases. While 3M currently finds itself in a slump, many remain optimistic that it will navigate through these difficulties in due course. Research and development (R&D) outcomes can be unpredictable, and the timing of breakthrough innovations is uncertain. Nevertheless, 3M has a proven track record of leveraging such innovations to enhance its product lineup across various segments. Consequently, while investing in 3M may seem contrarian, it isn't inherently risky. After all, the company's status as a Dividend King underscores its ability to deliver consistent performance through diverse market conditions.

However, the primary concern surrounding 3M stems from the legal battles and regulatory challenges it faces. While it's not uncommon for a company of its size to encounter such issues, the substantial legal expenses and regulatory hurdles related to environmental and product liability issues have weighed heavily on 3M. These challenges, particularly concerning earplugs sold to the U.S. military and the production of persistent chemicals, have significantly impacted the company's financials and reputation. Compounding matters, 3M's policy of refraining from discussing ongoing legal matters, until they are resolved, has made it challenging for investors to track its progress accurately. Consequently, despite diligent efforts to stay informed through quarterly conference calls and news feeds, investors often encounter unexpected negative developments.

Moreover, the spinoff of 3M's healthcare segment on April 1 adds another layer of complexity. Initially hailed as a promising growth opportunity, the spinoff was prompted by the need to raise capital to address the escalating legal costs. However, the spinoff's execution amid ongoing legal challenges raises concerns about the company's underlying strength. Additionally, given the healthcare segment's significant contribution to 3M's overall business, there is uncertainty regarding the impact on the company's dividend, which may necessitate a reset.

In light of these challenges and uncertainties, investors seeking stability and predictability may prefer to steer clear of 3M until its legal and regulatory issues are resolved, and the implications of the healthcare segment spinoff become clearer.

If you're on the lookout for a potential turnaround opportunity, 3M might catch your attention. Despite the current uncertainties surrounding the company, there's a strong likelihood that this industrial stalwart will weather the storm and emerge stronger. With its extensive history and resilience, 3M appears well-positioned to navigate through challenging times. However, the path to recovery won't be smooth sailing and certainly won't happen overnight. Investing in 3M entails accepting a degree of uncertainty and being comfortable with limited visibility, particularly regarding the legal issues it faces.

As a conservative investor who values transparency and insight into the companies in the portfolio, investors may find 3M's situation less than ideal. Like many others in a similar position, investors might opt to reduce or exit the investment in 3M until the uncertainties surrounding the company are resolved. While there may be potential for revisiting 3M in the future, it's prudent to remain on the sidelines for now, observing how the company's story unfolds amid ongoing volatility and challenges.

As long as the price is above 100.00, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 104.38
• Take Profit 1: 110.00
• Take Profit 2: 115.00

Alternative scenario: 

If the level of 100.00 is broken-down, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 100.00
• Take Profit 1: 95.00
• Take Profit 2: 90.00