Exchange of 3M For Neogen. Worth it?
Exchange of 3M For Neogen. Worth it?
3M is offering exchange of their stock at 100 to 107forNeogen (Neog)which has products related to food and animal safety and the stock is down 50% for the year and pays 0 dividend. 3M pays 4% dividend and the stock is down 25% for the year anyone knows about Neogen and care to comment about this deal? Thanks
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Re: Exchange of 3M For Neogen. Worth it?
Boring Boglehead answer:
Buying individual stocks has a poor risk/reward ratio. In addition, both of those stocks underperformed the total market in 10, 5, 3 and 1 year periods. You're better off in an index fund.
Buying individual stocks has a poor risk/reward ratio. In addition, both of those stocks underperformed the total market in 10, 5, 3 and 1 year periods. You're better off in an index fund.
45% Total Stock Market | 52% Consumer Staples | 3% Short Term Reserves
Re: Exchange of 3M For Neogen. Worth it?
The better exchange would be for VTI.
Re: Exchange of 3M For Neogen. Worth it?
You are unlikely to find any fortune tellers in the Bogleheads community. This is one reason most of us only invest in widely diversified funds like a total U.S. stock market index. Best of luck with your decision.
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Re: Exchange of 3M For Neogen. Worth it?
It's not going well for me with the ~10% drop in MMM today. Maybe it's best to stay the course with VTI, even when confronted with these special opportunities.
Re: Exchange of 3M For Neogen. Worth it?
To understand what is going on you should read up on the 3M/Neogen deal and decide how you want to handle your choices.
This forum is pretty well based on mutual fund investing as inspired by Jack Bogle at Vanguard and will give you consistent advice to hold only diversified low cost index funds, or at least mutual funds and/or ETFs if not index.
The financial analysis behind this is that individual stocks carry diversifiable risk that says a large collection of similar stocks can be held at less risk at no loss of return than can a single stock. Stock picking is known to be difficult to do consistently.
This forum is pretty well based on mutual fund investing as inspired by Jack Bogle at Vanguard and will give you consistent advice to hold only diversified low cost index funds, or at least mutual funds and/or ETFs if not index.
The financial analysis behind this is that individual stocks carry diversifiable risk that says a large collection of similar stocks can be held at less risk at no loss of return than can a single stock. Stock picking is known to be difficult to do consistently.
Re: Exchange of 3M For Neogen. Worth it?
If the reason you bought 3M is no longer valid, you should sell it.
I still own a few stocks because I don’t want to pay capital gains tax to sell.
I take the dividends in cash so the positions grow slower and become a smaller position in the portfolio.
I still own a few stocks because I don’t want to pay capital gains tax to sell.
I take the dividends in cash so the positions grow slower and become a smaller position in the portfolio.
Retired Military Officer. 80% equites / 20% bonds for life, ZERO emergency fund, 100% taxable in equities (dividends in cash), 33% taxable, 30% Roth, 37% tax deferred. Gone Fishing At 52yrs old!
Re: Exchange of 3M For Neogen. Worth it?
I have the same question as you and know nothing about Neogen. Unfortunately, it appears no one on this forum is able to help. I'm not sure why some BHers provide non-responsive comments like "buy VTI" or "don't own individual stocks." That's hardly helpful.mumbadevi wrote: ↑Fri Aug 19, 2022 11:58 am 3M is offering exchange of their stock at 100 to 107forNeogen (Neog)which has products related to food and animal safety and the stock is down 50% for the year and pays 0 dividend. 3M pays 4% dividend and the stock is down 25% for the year anyone knows about Neogen and care to comment about this deal? Thanks
It's a shame that a multi-faceted company such as MMM is being punished over a trivial product line like ear plugs that were part of an acquisition. Thank you plaintiff's bar!
The difficulty with jazz is there are too many notes. (Borrowed from Emperor's critique in Amadeus)
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Re: Exchange of 3M For Neogen. Worth it?
I don't think anyone is trying to be non-responsive.
If you were interested in getting informed opinions on whether the pulled pork plate or the (pork) ribs were the best choice at a given restaurant, you should not be shocked if the fine folks on a halal or kosher forum didn't give you a direct answer.
The OP posted a very specific question about one company's stock and its relative merit to a spin-off (from what I gather), but chose to ask it on a forum whose members are dedicated to the idea that single-company stocks are not the best way to invest. Namely, they believe in buying funds that include 1000s of stocks because they are convinced that almost no one is talented enough to beat the overall market consistently enough to justify the added risk of concentrating on individual stocks. The folks replying here are simply admitting that they don't have a good answer because they don't play that particular game.
It's not like we hide what we're about here: BH investment philosophy.
If you were interested in getting informed opinions on whether the pulled pork plate or the (pork) ribs were the best choice at a given restaurant, you should not be shocked if the fine folks on a halal or kosher forum didn't give you a direct answer.
The OP posted a very specific question about one company's stock and its relative merit to a spin-off (from what I gather), but chose to ask it on a forum whose members are dedicated to the idea that single-company stocks are not the best way to invest. Namely, they believe in buying funds that include 1000s of stocks because they are convinced that almost no one is talented enough to beat the overall market consistently enough to justify the added risk of concentrating on individual stocks. The folks replying here are simply admitting that they don't have a good answer because they don't play that particular game.
It's not like we hide what we're about here: BH investment philosophy.
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Re: Exchange of 3M For Neogen. Worth it?
ask the magic 8 Ball:
https://magic-8ball.com/
https://magic-8ball.com/
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions |
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Re: Exchange of 3M For Neogen. Worth it?
I know very little about Neogen, but this sounds like the 1996 spinoff of Imation from 3M.mumbadevi wrote: ↑Fri Aug 19, 2022 11:58 am 3M is offering exchange of their stock at 100 to 107forNeogen (Neog)which has products related to food and animal safety and the stock is down 50% for the year and pays 0 dividend. 3M pays 4% dividend and the stock is down 25% for the year anyone knows about Neogen and care to comment about this deal? Thanks
You may make 7% to start, and be positive for a year, but Bogleheads who invest in a S&P 500 index or Dow Jones Industrial Average index fund would sell it [ Neogen] as soon as possible.
Bogleheads who invest in a total stock market index, would keep the new Neogen shares, but not tender all their 3M shares.
Also as the NYTimes noted in 1996, some index funds and income funds would sell any Imation/Neogen shares they received, so there may be a short term drop in price. Vanguard 500 Index Fund alone owns 2.19% of 3M shares.
Re: Exchange of 3M For Neogen. Worth it?
No, people on this forum would be not helpful because most people on this forum don't hold individual stocks and those who might very likely don't hold 3M or Neogen and have never heard of this particular corporate transaction. To make decisions about what to do with corporate changes like this that affect your stock holdings you have to dig into the financial particulars and figure things out.JazzTime wrote: ↑Sat Aug 27, 2022 7:03 pmI have the same question as you and know nothing about Neogen. Unfortunately, it appears no one on this forum is able to help. I'm not sure why some BHers provide non-responsive comments like "buy VTI" or "don't own individual stocks." That's hardly helpful.mumbadevi wrote: ↑Fri Aug 19, 2022 11:58 am 3M is offering exchange of their stock at 100 to 107forNeogen (Neog)which has products related to food and animal safety and the stock is down 50% for the year and pays 0 dividend. 3M pays 4% dividend and the stock is down 25% for the year anyone knows about Neogen and care to comment about this deal? Thanks
It's a shame that a multi-faceted company such as MMM is being punished over a trivial product line like ear plugs that were part of an acquisition. Thank you plaintiff's bar!
I agree with you that telling people who have an individual stock question to not hold individual stocks is not helpful. There is a Morningstar forum on stocks where an ask may get more response, but even then this is very specialized issue. Maybe asking a stock broker for advice would work, maybe. https://community.morningstar.com/s/top ... GAE/stocks
Re: Exchange of 3M For Neogen. Worth it?
A first hit on a simple Google search gives this: https://www.fool.com/investing/2021/12/ ... investors/
You can probably find more if you dig into it.
You can probably find more if you dig into it.
Re: Exchange of 3M For Neogen. Worth it?
I own MMM and I am not taking them up on the exchange. If I don't know anything about Neogen, why would I invest in it?mumbadevi wrote: ↑Fri Aug 19, 2022 11:58 am 3M is offering exchange of their stock at 100 to 107forNeogen (Neog)which has products related to food and animal safety and the stock is down 50% for the year and pays 0 dividend. 3M pays 4% dividend and the stock is down 25% for the year anyone knows about Neogen and care to comment about this deal? Thanks
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dumb investor during 1999 tech bubble, current slice & dicer.
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Re: Exchange of 3M For Neogen. Worth it?
The tender was due last month, and it looks like it was fully subscribed, so if you did not try to get neogen shares, you should not get any shares of neogen or spinco.
https://investors.3m.com/news/news-deta ... fault.aspx
https://investors.3m.com/news/news-deta ... fault.aspx
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Re: Exchange of 3M For Neogen. Worth it?
I recently acquired MMM and like it going forward.