3M launches new products
3M Company (MMM) remained busy last week, launching two new products in different segments. On October 9, 3M launched SoluPrep Film-Forming Sterile Surgical Solution, a solution containing 2% chlorhexidine gluconate and 70% isopropyl alcohol, to fight surgical site infections caused by infectious bacteria around the surgical incision area.
On October 11, another of 3M’s business verticals introduced the new sealing products 3M-Matic, a random case sealer, and Scotch high track box sealing tape 371+. Both products will be showcased at PackExpo International, which is scheduled to be held from October 14 to 17 in Chicago. The new products could help decrease downtime and bring down labor costs.
Chad Klostermann, the US marketing manager of 3M’s Packaging and Equipment segment, said, “A production line is no place for bottlenecks, and our new 7000r/7000r3 High-Speed Pro case sealer enables consistent tape application at high speeds – even if the size and shape vary with every box. Its safety features and improved processes can help increase plant safety, reduce labor costs and decrease downtime.”
The sell-off in US markets and across the globe had an adverse impact on 3M stock last week. The stock fell a massive 9.8% and closed at $192.23. The fall resulted in a trend reversal of its 100-day moving average. The stock is now trading 3.2% below its 100-day moving average of $204.43. On a year-to-date basis, 3M stock has extended its fall to 15.8%.
Among 3M’s peers, General Electric (GE), Caterpillar (CAT), and Stanley Black & Decker (SWK) have fallen 29.4%, 9.8%, and 23.5%, respectively. 3M’s 14-day relative strength index of 32 indicates that it’s very close to being oversold.
Investors could hold 3M indirectly by investing in the SPDR Dow Jones Industrial Average ETF (DIA). DIA held 5.5% of its portfolio in 3M as of October 12.