Meguiar's and Stocks

[Andrew C.]

I know that Meguiar's was previously a privately owned company but it was acquired by 3M recently.

Are the sales of Meguiar's incorporated into the 3M Stock (MMM) ? If Meguiar's sales go up (let's imagine everything else 3M sells is stagnant) then would 3M stock go up?

I'm not that great with stocks but I figured I'd get into it a little and why not start with one of my favorite companies (also a company I have heavily invested in their products haha)

[Markus Kleis]

Re: Meguiar's and Stocks

In theory, is all else remained equal in 3M, yet Meguiar's killed it, could go up. But of course that could also be untrue if the rest was projected to do well and didn't, then people drop it and it goes down.

Tricky stuff...

[Andrew C.]

Re: Meguiar's and Stocks

Hmmmm and 3M probably has a heck of a lot more of their assets in stuff other than just Meguiar's. Meguiar's is probably only a small portion of all their assets. Tricky indeed

[Markus Kleis]

Re: Meguiar's and Stocks

Yeah, 3M is a REALLY diverse company. At the same time, buying 3M stock is somewhat like buying a mutual fund in the sense that within one company they are so unbelievably diverse that it adds security. 3M products range from dental care and products to car care to sticky pads. The upside to that is no one, or two, or five industries could put 3M out of business.

[Eddie6th]

Re: Meguiar's and Stocks

I don't know the full ins and outs,but is Meguiar's involvement with 3M a good thing? I would think so?

[Markus Kleis]

Re: Meguiar's and Stocks

I don't know the full ins and outs,but is Meguiar's involvement with 3M a good thing? I would think so?

Essentially things on the front end are, and have been unchanged for going on close to a year I believe.

The real changes came in the back-end where Meguiar's gained substantial resources for distribution and of course 3M has a massive R&D budget, but to be honest, I do not know what kind of "cross pollination" (if any) goes on.

[Eddie6th]

Re: Meguiar's and Stocks

That's a nice way putting it..Cross pollination.

That was what I was getting at.

3M is about the only professional product that I can find here.I've enquired about the meguiar's professional line,but havn't had any luck as yet.Anyway,I think Meguiar's involvment is a good one.

[HCAD]

Re: Meguiar's and Stocks

One of the few downsides to being owned by a huge company like 3M, if for some reason the Meguiar's biz doesn't do as 3M thinks it should (low profits), then sometimes the big boys just shut down divisions and use it as a right off instead of keeping the business afloat. Slim chance I know, but I've been a part of that process before so I think about it a lot.

[Markus Kleis]

Re: Meguiar's and Stocks

One of the few downsides to being owned by a huge company like 3M, if for some reason the Meguiar's biz doesn't do as 3M thinks it should (low profits), then sometimes the big boys just shut down divisions and use it as a right off instead of keeping the business afloat. Slim chance I know, but I've been a part of that process before so I think about it a lot.

Although technically correct, I assure you that the Meguiar's division isn't going anywhere anytime soon

[the_invisible]

Re: Meguiar's and Stocks

Are the sales of Meguiar's incorporated into the 3M Stock (MMM) ? If Meguiar's sales go up (let's imagine everything else 3M sells is stagnant) then would 3M stock go up?

That depends on the type of ownership 3M holds and the shares being held by 3M.

If Meguiar's is "acquired" by 3M, then Meguiar's is effectively a subsidiary of 3M. As a subsidiary, Meguiar's financial records are consolidated with its parents'.


Keep in mind that Meguiar's is still one of the many small operations that 3M owns. If you want to invest in 3M, then you may want to look at 3M's own operations and its other small subsidiaries. Ownership in companies like Meguiar's could barely make any difference on the multi-billion dollar entity's financial statements.

Coming from a retired financial analyst.

[the_invisible]

Re: Meguiar's and Stocks

One of the few downsides to being owned by a huge company like 3M, if for some reason the Meguiar's biz doesn't do as 3M thinks it should (low profits), then sometimes the big boys just shut down divisions and use it as a right off instead of keeping the business afloat. Slim chance I know, but I've been a part of that process before so I think about it a lot.

Although there's some truth to this, Meguiar's is the least likely candidate to be written off for tax or financial purposes. The Meguiar's brand name alone is worth a lot and could be sold to generate a sizable goodwill.

[rusty bumper]

Re: Meguiar's and Stocks

3M bought Meguiars?

When did this happen?

[the_invisible]

Re: Meguiar's and Stocks

3M bought Meguiars?

When did this happen?

http://www.meguiars.com/press/releas...elected_ID=183

[rusty bumper]

Re: Meguiar's and Stocks

I am totally against this.

Makes me wonder if this is part of the reason Mike P. left.

[the_invisible]

Re: Meguiar's and Stocks

Just out of curiosity, how does the acquisition of Meguiar's by 3M directly affect any Meguiar's users and its community members?

Although I haven't directly talked to Mike P, I don't think he cares about who owns who.