Excitement Builds in the Global Conglomerate Space (MMM, IVST, UTX)

Lisa Ray - March 13, 2019

IAs the market continues to pick up steam and reassert the big bad bull in manifest form, investors are left with the task of splicing the market into useful opportunities. One group that hasn’t received sufficient focus is the conglomerates. Today, we look at three stocks in the group with strong potential for investor gains: 3M Co (NYSE:MMM, Innovest Global Inc (OTCMKTS:IVST), and United Technologies Corporation (NYSE:UTX).

3M Co (NYSE:MMM) trumpets itself as a technology company worldwide. The company’s Industrial segment offers tapes, abrasives, adhesives, ceramics, sealants, specialty materials, purification products, closure systems, acoustic systems products, automotive components, abrasion-resistant films, and paint finishing and detailing products.

Its Safety and Graphics segment provides personal protection and transportation safety products, commercial graphics systems, commercial cleaning and protection products, floor matting, roofing granules, fall protection products, self-contained breathing apparatus systems, and gas and flame detection instruments.

The company’s Health Care segment offers medical and surgical supplies, skin health and infection prevention products, drug delivery and health information systems, dental and orthodontic products, and food safety products. Its Electronics and Energy segment provides optical films, packaging and interconnection devices, insulating and splicing solutions, touch screens and monitors, renewable energy component solutions, and infrastructure protection products.

The company’s Consumer segment offers consumer and office tapes and adhesives, repositionable notes, indexing systems, home improvement products, furnace filters, painter tapes, mounting and home care products, sponges, scouring pads, high-performance clothes, protective material products, and adhesive bandages and braces. It also provides cloud-based, conversational artificial intelligence-powered systems.

It serves automotive, electronics and automotive electrification, appliance, paper and printing, packaging, food and beverage, construction, medical clinics and hospitals, pharmaceuticals, dental and orthodontic practitioners, health information systems, food manufacturing and testing, consumer and office retail, office business to business, home improvement, drug and pharmacy retail, and other markets.

MMM hasn’t really done much of anything over the past week, with shares logging no net movement over that period.

3M Co (NYSE:MMM) generated sales of $7.9B, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -2.5% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($3.3B against $7.2B, respectively).

Innovest Global Inc (OTCMKTS:IVST) casts itself as a diversified holding company that focuses on identifying and acquisition of qualified mineral prospects.

This is a diversified holding company with operations in commercial and industrial products and services, energy, biotechnology, and health services. Innovest Global utilizes novel technology and marketing to efficiently acquire customers.

The company’s primary growth strategy is to acquire existing companies in a select few industries, and attract new customers in cost effective ways. Currently, it has a Commercial & Industrial Division, and a Biotechnology & Health Services Division.

The company recently took a strong stake in StemVax Therapeutics, a Translational Biotechnology Company that develops novel therapies for brain tumor patients. The company focuses its efforts on developing immunotherapeutic approaches to treating patients with Glioblastoma Multiforme (GBM), a devastating brain cancer.

The company also focuses its research efforts on novel drug development to target Cancer Stem cells and other multi-resistant cancer cells. It seeks to “make a difference in patient’s lives. Bringing new beginnings to the market by developing novel therapeutics. Dr. Dwain Morris-Irvin, President of Innovest’s Biotech division is the StemVax founder and Chief Science Officer.”

In addition, the company just announced that it has signed a letter of intent on March 4, 2019 to purchase 100% of a building materials supply company. According to the release, the central Ohio target generated $4.2 million in revenue with income of $300,000 in owner benefit in 2018, and is currently a purchasing member of Authority National Supply (ANS), an Innovest Global Company.

The company was formerly known as Aurum Resource and Asset Management, Inc. and changed its name to Innovest Global, Inc. in January 2017. Innovest Global, Inc. was incorporated in 1999 and is based in Las Vegas, Nevada.

If you’re long this stock, then you’re liking how the stock has responded of late. IVST shares have been moving higher over the past week overall, pushing about 28% to the upside on above average trading volume.

Innovest Global Inc (OTCMKTS:IVST) generated sales of $1.1M, according to information released in the company’s most recent quarterly financial report. In addition, the company is holding cash levels at $390K.

United Technologies Corporation (NYSE:UTX) bills itself as a company that provides technology products and services to building systems and aerospace industries worldwide.

Its Otis segment designs, manufactures, sells, and installs passenger and freight elevators, escalators, and moving walkways; and offers modernization products to upgrade elevators and escalators, as well as maintenance and repair services. The company’s Carrier segment provides heating, ventilating, air conditioning, refrigeration, fire, security, and building automation products, solutions, and services for commercial, government, infrastructure, residential, and refrigeration and transportation applications.

This segment also offers building services, including audit, design, installation, system integration, repair, maintenance, and monitoring. Its Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation markets; and provides aftermarket maintenance, repair, and overhaul, as well as fleet management services.

The company’s Collins Aerospace Systems segment provides electric power generation, power management, and distribution systems; air data and aircraft sensing systems; engine control, intelligence, surveillance, and reconnaissance systems; engine components; environmental control systems; fire and ice detection, and protection systems; propeller systems; engine nacelle systems; aircraft lighting, seating, and cargo systems; actuation and landing systems; space products and subsystems; avionics systems; flight controls, communications, navigation, oxygen, and training systems; food and beverage preparation, and storage and galley systems; and lavatory and wastewater management systems. The company offers its services through manufacturers’ representatives, distributors, wholesalers, dealers, retail outlets, and sales representatives, as well as directly to customers.

It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things. UTX shares have been relatively flat over the past month of action, with very little net movement during that period.

United Technologies Corporation (NYSE:UTX) managed to rope in revenues totaling $18.1B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 15.3%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($6.2B against $31.4B, respectively).

Lisa Ray

Lisa Ray

Lisa has a Bachelor of Arts in journalism from Purdue University and 3 years of experience in the publishing field.

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