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!
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- 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
European Dividend Growth Investor