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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (44191)	9/2/2011 11:15:04 AM
From: E_K_S	Read Replies (2) \| Respond to of 78671

Bayer AG (BAYRY.PK) This is one I have not followed too much but the name has come up when I was looking into AG crops as well as Animal drugs. They carry a bit more LT debt than I like when compared to their net annual income (5.6:1) but with a forward PE in the 8's it is in my Value range. When I derive a price based on a 4% dividend return, I come up with a stock price of $51.00/share. Therefore, I put in a GTC order for a tracking position at this price. After I do a bit more research on their AG subsidiaries and find more positives than negatives, I may step up and move my entry price higher. I do recall some cross contamination of genetic rice strains that the company had to settle. It was pretty large around $750 million. $750 Million Settlement Reached in Bayer Cropscience Rice Contamination Litigation Attorney Don Downing of the St. Louis law firm Gray, Ritter & Graham, and Adam Levitt of the Wolf Haldenstein Adler Freeman & Herz law firm in Chicago, were the court-appointed co-lead Plaintiff’s counsel in the multi-district litigation in U.S. federal court. prweb.com From the article:"...July 07, 2011 A three-quarters of a billion dollar legal settlement (case no. 4:06 MDL # 1811 CDP U.S. District Court, Eastern District of Missouri) has been reached between Germany based Bayer AG and its affiliates, and U.S. rice farmers. This settlement relates to legal actions filed beginning in 2006 in response to contamination of the U.S. rice supply by Bayer’s experimental and unapproved genetically modified Liberty Link rice. Bayer has agreed to pay up to $750 million in damages to U.S. rice farmers, plus all administrative costs. According to court documents, this settlement is in addition to previous settlements in which Bayer has already agreed to pay to some plaintiffs in the litigation, which include farmers, rice exporters, rice importers, rice mills and rice seed dealers. ...". As a result I am not sure where they stand on their future development/research in this area. There was some speculation that they were going to get out of the seed business altogether but I just do not know. Bayer was one of the other drug companies that was looking at Pfizer's animal health business. They have a better chance of negotiating a deal than LLY since LLY was only looking at a few specific pieces where Bayer would take the whole business as long as the price was right. Therefore, Bayer has several positive things working for them but when I ran across their recent experimental rice litigation settlement, I felt it was better to wait to see how things sorted out before I stepped up and started a position. EKS

To: Spekulatius who wrote (44191)	9/9/2011 10:01:14 AM
From: Spekulatius	Read Replies (2) \| Respond to of 78671

HENKY averaging up at 43.3$ - I bought a first lot in 2008 at 23.5 Euro. HENKY are the non voting shares (HENKOY are the voting shares ) trades now at 31.5 Euro or about 9x earnings. This is a consumer goods and adhesive company with a good LT track record. They are the worldwide leader in adhesives (brand names are Loctite, Pattex, Pritt). This is a somewhat cyclical (use in industrial applications) but nicely growing business. 42% of their revenues are in developing countries. I am sure this one will work out nicely over time. I also added a few shares to my loosing Delta Lloyd (dutch life insurer) position. Dividend yield is now 10%. I am not quite that sure about that one (it's a financial after all).