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This Is The Most Dangerous Stock In America…
3M Company ($MMM) is currently the most dangerous stock in America. In this article I’ll explain why that is, how to think about risk, and what you might want to do if you are a 3M shareholder.
Let’s start risk.
The 3M Company is facing over 200,000 lawsuits from United States veterans who claim faulty 3M earplugs damaged their hearing.
16 earplug cases have gone to trial so far, with 3M losing 10 of them. Judges in these 10 cases have awarded veterans more than $265 million total. In the event that 3M has to pay out on the majority of their 200,000 cases, it is believed that they would face more than $82 billion in liabilities.
This would bankrupt the company.
On top of this, plaintiffs want 3M to suspend their dividend and stock buyback program — ensuring there’s enough money to settle each lawsuit.
Despite these enormous risks, many financial analysts are declaring 3M a “buy-the-dip” opportunity or a textbook case of “being greedy when others are fearful.”
I will explain why, mathematically speaking, 3M is not a deep value bargain.
