Here's Why I Bought This Struggling Stock
I recently captured a sizable loss in 3M (NYSE: MMM) and was trying to find a high-yield industrial stock to buy in its place. I had long followed Leggett Platt (NYSE: LEG). Given the similarities between the two companies, I ended up adding it to my portfolio despite the fact that it is facing material business headwinds today. Here's why.
I bought 3M several years ago because it was a Dividend King that had fallen out of favor on Wall Street. Some of the positives for me were its diversified business and focus on innovation. What I didn't fully appreciate was the uncertainty of the legal issues 3M is facing (on both the product liability and environmental fronts), which I can't really track because management can't talk about legal matters. Although I believe it will muddle through these headwinds (I kept a small position so I will continue to monitor the progress), I wanted an investment that was facing less uncertainty.
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Source Fool.com
