Sticky note
Adhesive advances at 3M
Good morning, my fellow analysts. This is your Stock Market Rundown for May 10th, 2024. Thanks for joining me, once again. Let’s dig in:
TODAY’S TOP STORY: POST-IT PIONEERS
In the modern digital era, Post-It notes are a bit of a throwback. But they were a smash hit in the era before text messages, when inter-office mail ruled the cubicles.
The product was born back in 1980, when materials scientists at 3M were looking for applications for a newly-invented pressure-sensitive adhesive. They came up with the iconic bright-yellow Post-It notes. And to this day, baby boomers use Post-Its as a way to store their internet passwords.
3M has always been an innovator. Founded in 1902 as Minnesota Mining and Manufacturing, its earliest products were better versions of sandpaper and adhesive tape—including the iconic Scotch tape.
3M has long been what’s known as a “dividend aristocrat”. To qualify, a public company has to have increased its dividend every year for at least 25 years. In 3M’s case, the track record of annual dividend boosts stretches back six decades.
But the company recently announced it’s paring back its dividend payout. No, Post-It notes haven’t gone out of style; the cut is due to 3M spinning off a healthcare IT subsidiary.
Even with the slashed divvy, 3M will be valued by investors for its track record of launching cool new stuff. Like their privacy filters for electronic devices (invented in 1990), which prevent the nosy dude sitting beside you in Delta business class from peeking at the spreadsheet you’re building on your Chromebook. Now that’s innovation.
SO WHAT ELSE IS GOING ON?
Yum Brands, the parent company of Kentucky Fried Chicken, reported declining quarterly sales as an attempt at a loyalty program flopped. Apparently patrons weren’t into buying nine drumsticks and getting the tenth one free.
Roger Ver, a former crypto exec known as “Bitcoin Jesus”, has been arrested for evading millions in taxes. He may be a crypto savior, but the IRS is about to put him through audit hell.
Kraft Heinz needs to put a bit more mustard on their quarterly results. They missed estimates as consumers skipped the Jell-O pudding and Planters peanuts, due to price inflation.
Social image site Pinterest forecast strong earnings, thanks to revenue from advertisers chasing its GenZ user base devoted to wide-leg jeans and zoomer perms.
That’s it for today and for the week, team. Have a great weekend, don’t do anything I wouldn’t do, and let’s circle back first thing Monday. Yours in capitalism, The Axe
Thank you so much for reading. If you enjoyed today’s Stock Market Rundown, the #1 thing you can do to help me out is forward it to a friend.