Opinions
Darren Sissons
Bayer AG
BAYRY-OTC
PAST TOP PICK
Aug 06, 2024
Stock price when the opinion was issued
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It is priced at 50 cents on the dollar compared to its peers. In 2018 it bought Monsanto and the Roundup litigation halved the company. However it is being dealt with. It has three new drugs on the pharma side, one with no near term competitors when it comes off patent. It will probably spin out the herbicide business and sits at a very attractive price. Buy 18 Hold 8 Sell 1
There was some positive news on the 16th, after a US court ruled in favor of its Monsanto business in a lawsuit alleging that BAYRY's Roundup weedkiller products increase the risk of cancer. These claims were dismissed and the stock jumped over 10% that day. Recent quarterly results were positive and it beat on earnings and affirmed full-year guidance. It continues to be very cheap at 5.5x forward earnings but growth is not expected to be high while debt is also very high. We continue to not be overly excited here.
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He sold it last February. When he bought it was down 50% on the Mansanto litigation. He dumped up, classic risk management.