Author Topic: BAYRY - Bayer AG  (Read 12696 times)

UK

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Re: BAYRY - Bayer AG
« Reply #30 on: September 20, 2019, 02:25:22 AM »
https://www.bloomberg.com/news/features/2019-09-19/bayer-s-monsanto-purchase-looks-worse-with-each-roundup-verdict

"When a Bayer lawyer asked one juror what the panel needed as proof that the Monsanto product was safe, the juror replied, “I wanted you to get up and drink it.”

“The first thing I do when I meet a stranger is, I tell him that I’m a lawyer, that I sue Monsanto, because people immediately go, ‘Good man, let me buy you a drink.’ ” He adds: “Everywhere I go, it’s amazing, everyone f---ing hates these guys. It’s great.”

"Millions of farmers still rely on Roundup, however, and argue that nonglyphosate products would potentially be worse for the environment. When reporters recently toured Bayer’s crop science division, employees backed Baumann, saying the Roundup litigation isn’t only misplaced, it’s also a distraction from the company’s mission to develop much-needed agricultural technology to produce more food on less land.  “The challenge just keeps getting bigger and bigger and bigger,” said Condon, the division chief. Baumann remains as placid and soft-spoken as ever. In early September he traveled to Frankfurt to attend meetings. Seated in the courtyard of the five-star Villa Kennedy hotel, he looked tan and relaxed. Eighty percent of his personal wealth is invested in Bayer, but he said he wasn’t losing sleep over the Roundup litigation"
« Last Edit: September 20, 2019, 03:17:15 AM by UK »


Spekulatius

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Re: BAYRY - Bayer AG
« Reply #31 on: August 07, 2020, 03:51:19 AM »
It looks like Bayer can settle most of the Roundup lawsuits for ~$10.9B, which isn’t an existential problem. The sale of their animal health division to Elanco will yield $5.17B plus Elanco shares worth ~$1.5B that will be sold next year. The EV is ~7x and debt is <3x which also seems manageable. Just eyeballing it, it trades at the same valuation than it did in 2015/2016 but their business is arguably better, since they sold/spun off commodity business like polymers. What is left is Pharma , AG chemicals/seeds and consumer health.

Bayers Management isn’t great, but this should relate Unless they do something incredibly dumb again.

Disclosure: no position yet.
https://media.bayer.com/baynews/baynews.nsf/id/Bayer-announces-agreements-to-resolve-major-legacy-Monsanto-litigation?Open&parent=news-overview-category-search-en&ccm=020
Life is too short for cheap beer and wine.

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Re: BAYRY - Bayer AG
« Reply #32 on: August 07, 2020, 05:24:36 AM »
Bayer had just  completed the sale of its Animal Health business unit to Elanco on August 3rd for $5.17B plus 72.9M Elanco shares($24.44 last close) for a moving total(there's a lockup on Elanco's shares) of $6.95B.

I'm long Bayer. to have this level of volatility in megacap pharma-AG is a gift.
I boosted my position by 50% at $13.3 in the COVID panic, naively I expected Bayer to outperform in that environment, like its Pharma peers and inline for the sector in times of crisis but I was thankful to be wrong and buy on sale.

This stock is just hated but the underlying business is solid(their Pharma R&D churns out PH3/approvals in major fields(cancer, cardiovascular) and with them wrapping up the bulk of their litigation issues the sentiment would shift.
I'm comfortable holding it through their legal woes as they seem manageable relative to their CF/EV/cash etc.



https://www.investor.bayer.de/en/nc/news/investor-news/investor-news/bayer-completes-the-sale-of-its-animal-health-business-unit-to-elanco/



It looks like Bayer can settle most of the Roundup lawsuits for ~$10.9B, which isn’t an existential problem. The sale of their animal health division to Elanco will yield $5.17B plus Elanco shares worth ~$1.5B that will be sold next year. The EV is ~7x and debt is <3x which also seems manageable. Just eyeballing it, it trades at the same valuation than it did in 2015/2016 but their business is arguably better, since they sold/spun off commodity business like polymers. What is left is Pharma , AG chemicals/seeds and consumer health.

Bayers Management isn’t great, but this should relate Unless they do something incredibly dumb again.

Disclosure: no position yet.
https://media.bayer.com/baynews/baynews.nsf/id/Bayer-announces-agreements-to-resolve-major-legacy-Monsanto-litigation?Open&parent=news-overview-category-search-en&ccm=020