Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, February 27, 2015

Article Excerpt

3M COMPANY, $168.65, New York symbol MMM, has agreed to buy Polypore International’s (New York symbol PPO) Separations Media division. This business makes membranes and filters for a variety of industrial and health-care uses, including dialysis, purifying drugs and filtering water. 3M will pay $1.0 billion when the deal closes in the next few months. The company held cash of $2.5 billion, or $3.97 a share, as of December 31, 2014, so it can comfortably afford this purchase. Excluding integration costs, Separations Media will add $0.04 a share to 3M’s earnings in the first year. To put that in context, 3M earned $7.49 a share in 2014. However, earnings from this new business should improve over the next few years as 3M uses its extensive distribution network to sell more of its products. 3M is a buy. 3M was recently covered in the Wall Street Stock Forecaster Hotline for December 19, 2014. Click here to access it. 3M was recently covered in the November 2014…