Bayer trading at a decade low – Is it an opportunity to buy or should we stay away?

In today’s video I want to dive a bit deeper into the mess of Bayer after the Monsanto acquisition.

Clearly the stock market reacted quite negatively to another 3.3 billion provision for RoundUp related litigation settlements.

But does this mean that it created a buying opportunity for us? Or should we clearly stay away from it?

Sometimes the market clearly overreacts and especially if shareholders are “giving up” or when fear hits the market.

But is this also the case for Bayer?

I am not a fan at all of current management as many of you know that also listen to our Dividend Talk podcast.

In my opinion Werner Baumann should resign as CEO and he should be replaced by a person that has a proven track record in dealing with these kind of situations.

But this tells you that I’m also a bit more emotional to this whole situation. And I realize this, because I’m pissed off that the CEO got us into trouble which also led to a dividend cut last year.

This was all avoidable and the merger was not even needed.

But hey, I think I’m quite capable in dealing with my emotions, so in today’s video you will hear the rational investor in me.

So tune-in and hear my thoughts on whether I am keeping my shares or selling them based on my fair value assessment of the company in its current situation.

See you on the inside!

Don’t forget to like the video & subscribe to the channel 🙏. It helps the algorithm and allows me to grow as a channel

Chapters:

  • 00:00 – Intro
  • 00:50 – How I evaluate a stock
  • 05:10 – A brief history of the Bayer / Monsanto acquisition
  • 11:22 – Bayer’s litigation settlements plan going forward
  • 12:36 – Impact of the acquisition on their numbers
  • 15:21 – Brief overview of Q2 2021 earnings
  • 16:42 – My fair value assessment of Bayer, using several different assumptions / scenario’s
  • 22:15 – My conclusion about whether Bayer is investable

Yours Truly,

European Dividend Growth Investor


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Disclaimer

I’m not a certified financial planner/advisor nor a certified financial analyst nor an economist nor a CPA nor an accountant nor a lawyer. I’m not a finance professional through formal education. I’m a person who believes and takes pride in a sense of freedom, satisfaction, fulfillment and empowerment that I get from being financially competent and being conscious managing my personal money. The contents on this blog are for informational and entertainment purposes only and does not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my blog is appropriate for you or anyone else. By reading this blog, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information provided on this blog.

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European DGI

It's my desire to retire early via Dividend Growth Investing as a passive income stream. This is not easy and especially when living in Europe. That's why I started this blog and share my journey: to give you a European perspective.
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