Hey, how do you see Bayer stock price? It has decrease consistently in the last 3/4 months. But the current price seems to have reached (44 âŹ) an interesting support point for a long term investment. It is also a company with an interesting dividend.
I am strongly thinking about averaging down my current position
Anyone care to share your thoughts?
Just looking at two basic things daily RSI is at 30 and potentially going back up which is good. The 200 EMA at ~60, and 50 EMA at 52 so itâs below the average historically.
I havenât done any DD on this, so I can say itâll go back up unless thereâs a strong catalyst.
Overall Max view looks grim for the last 5 years.
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Thanks for sharing you analysis. I did notice the devaluation tendance since 2015 and that is my
main reason to worry as a long term investment.
Aweful investment. Law suits over the weedkiller debacle, not to mention it risks being pulled from sale in the states. There is also a case for thousands of additional law suits being filed. I think theyâve agreed settlement of 45 thousand out of 125 thousand possible cases. If the remainder file, Bayer could go under.
A lot of risk for my liking.
If we were assured that this wouldnât happen, the Bayer looks sort of OK. Europe going into a lockdown too by the looks of it, so this will also hit European stocks.
Good company, but bad time imo.
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Bayer is too big to fail. It is Germanyâs sweetheart.
Land in Berlin or Frankfurt airports and one of the first things that greets visitors is a giant Bayer sign. Their assets alone are worth billions, as is their revenue.
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Was just reading this bearish article, thatâs one hell of a lawsuit settlement.
in June, the company agreed to settle a massive class action lawsuit resulting from the negative health impacts of its Roundup herbicide for a sum of around $9.6 billion. Given that the company only has $5.71 billion in cash on hand, it will probably need to dip into its free cash flow to make ends meet, thereby slowing its ability to grow.
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Well the question here is, will the valuation provide greater award benefit then the risk involved. As is always in an investment.
Many pharma companies were/are facing lawsuits and had millions/billions spent on settlements.
Not to long ago JNJ faced scrutiny over asbestos in baby powder. There was weakness in stock, but it recovered.
Again deeper fundamentals DD should be done in this case. I donât look at charts.
Many great companies were in bear market for 5-8 years(MSFT) people still buy them so that wouldnât be a factor in decision.
There might be plenty of buying opportunities in weeks ahead with EU tightening the curfew.
I personally wouldnât buy Bayer yet, as I believe many AA+ companies will come to bargain prices.
Pharma sector in hole has plenty of good picks at decent prices like MRK, ABBV, BMY, AMGN recently. Non of them near all time highs.
Anyway Fundamentals only the investment seems amazing, if Beyer would return to its historic 14.3 P/E, you would look in about 50% Annual rate of return.
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It looks like Bayer has done some pretty shitty things over the decades reading a bit more into it. Not uncommon but still shitty.
Edit: like this I mean come on 
Also donât know why I didnât put two and two together but I didnât realize they created the football team. 
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No company is too big to fail. Bayer carry a lot of risk and their cashflow doesnât cover potential liabilities. They are also managed like a typical German company, which is also another reason I would not invest in them.
Having revenue and assets worth billions (as you put it)âŚso what? What does that tell you in isolation?
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What do you mean by managed like a typical German company. Did not get?
ps: I live in Germany
German company, senior managers tend to focus on themselves and not the shareholders. Quick gains for nice bonuses. Example is seen here. Itâs just something I look for in German stocks, this one is no different. I have no problem with Germany as a country or its people.
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It is failing and it will, the Germany image is currently in a disgrace level because of all those âsweetheartsâ, donât forget all damage caused by VW, Deutsche Bank and recently Wirecard.
Donât bet your money on this 
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I donât know about that! Samsung is the first company that springs to mind. It makes up such a large percent of the GDP of Korea and they make everything from technology to hospitals to insurance. Not too mention their dealings in South Korean politics. Chaebol in Korea or Zaibatsu in Japan are here to stay.
The European union have competition rules. The only way a company would be saved is if it is nationalised.
I partially agree. There is an argument out there that says if companies which are deemed âtoo big to failâ then they should be classified as utilities, and either nationalised or not nationalised.
Obviously this is not the case as you would then see the likes of Boeing or Google re-classified. Though by default, such companies are then de facto âsavedâ, as you say.