Stocks with attititude... MMM, DD, DOW, AA, UTX, GE

3M has taken shareholders on a roller coaster ride for the last year and technicals for the stock have been negative lately. MMM has a cautious S&P 3 STAR (out of 5) hold rating with a 12-month price target of $83. Out of the 10 other analysts who cover the stock, six give it a strong buy and four give it a hold. With no sell ratings, analysts seem positive on the stock.

3M's stock worked its way up to a a high of $88.35 on May 8, 2006, then dropped 24.1% to $67.05 on July 25, 2006. The stock is now about 14% above its 52-week low. With a stock buy-back in progress the trend could continue upward.

Other heavy manufacturing/materials companies like DuPont (NYSE:DD), Dow Chemical Co. (NYSE:DOW), United Technologies Corp. (NYSE:UTX), and General Electric Co. (NYSE:GE) all appeared to benefit from investors renewed interest in the sector. And rumors of a possible Alcoa Inc. (NYSE:AA) takeover offer may have further encouraged investors.

For a neutral hedged play on MMM, I would consider a July covered call at the $75 level. There is even a dividend on the stock with a 2.5% annual yield.

Vic Schiller is an analyst with attitude at Investors Observer. (Free Subscription)

DISCLOSURE NOTE: Mr. Schiller owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about.