Cramer’s Off the Charts 3M Vs. Honeywell

In the “Off the Charts” segment, Cramer took a look at the charts of 3M (MMM) and Honeywell (HON) with RealMoney.com commentator Rick Bensignor. Recently, Bensignor said to sell 3M and buy Honeywell based off their respective chart patterns. He mentioned that HON is forming a double bottom pattern, which could mean a move to the upside is coming. Plus, the chart for HON is showing a cross in the MACD indicator, another bullish pattern. For 3M, Bensignor said the sellers are overwhelming the buyers and the MACD hasn’t crossed, which could mean the stock is going to fall more in the near future. Considering the fundamentals, Cramer said he would buy both stocks. Cramer holds 3M in his charitable trust and he called the company a lean, mean restructured machine that is ready to catch up to its competitors. 3M just raised its dividend in February and is trading at 9 times earnings, vs. Honeywell’s 11 times earnings. Cramer explained that the real reason to like 3M is for its overseas exposure given the weakening dollar. Around 63% of 3M’s sales come from abroad, so a weak dollar will translate into better earnings, which should get the stock moving higher. Join the fastest growing community of small cap investors at Stockhideout.com

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