Close menu




January 5th, 2022 | 11:10 CET

Avoiding penalties with Bayer, MAS Gold and BASF

  • Gold
Photo credits: pixabay.com

According to the "Allianz Global Wealth Report", global financial assets have grown strongly. Private households alone had gross financial assets of over EUR 200 trillion worldwide in the past year, representing an increase of almost 10% compared to the previous year. The reason for the high savings rate was mainly the uncertainty surrounding the Corona pandemic. Now, with punitive interest rates and rising inflation, there are renewed threats to citizens' assets. One way out would be to invest in precious metals and build up long-term equity positions, primarily in the value sector.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: BAYER AG NA O.N. | DE000BAY0017 , MAS Gold Corp. | CA57457A1057 , BASF SE NA O.N. | DE000BASF111

Table of contents:


    Bayer - When will calm set in?

    The pharmaceutical and agricultural giant was able to report whatever it wanted last year. Promising cooperation, new approvals, and, most recently, the Company's announcement that the Leverkusen-based renal drug Finerenon could also be sold in the European Union in the future - none of these had a positive impact on the share's performance. Experts even believe that the new drug will generate annual sales of more than USD 1 billion.

    Instead, the main focus of stock market players continues to be on the risks inherent in the agricultural division since the Monsanto takeover. The latest bad news about the acquisition, which has been the subject of controversy among the public, is the threat of a capital investor test case in Germany. According to the Tilp law firm, by December 30, the end of the statute of limitations period, around 320 investors had filed lawsuits for damages amounting to EUR 2.2 billion. The accusation is deception about the economic risks of the Monsanto takeover.

    The current chart performance of Bayer stock should be interpreted positively. Despite further disruptive factors, the share price was able to form a double bottom at EUR 44.90 and is gradually approaching the breakout point at EUR 48.05. A sustained breakout could release upside potential to the next major hurdle at EUR 56.84. Various analysts are also currently optimistic about the Bayer share. The US investment bank JP Morgan reiterated its "overweight" rating with a price target of EUR 75.00. The Swiss bank UBS sees a buy candidate with an even higher price target at EUR 85.00.

    MAS Gold - Prepared for the rise

    The performance of the precious yellow metal was a disappointment for many investors last year. Nevertheless, the conditions for a long-term gold bull market are still in place. Rising inflation figures, dramatically growing government debt and interest rates that remain at a low level could make both gold and silver the winners of the new year.

    In the process, attractive valuations of gold producers and exploration companies are slowly inviting countercyclical entry after the correction that has been underway since August 2020. At MAS Gold, several factors are coming together that could significantly impact the share price next year. First, the Company is digging for gold in the Canadian province of Saskatchewan. This place has historically stood out for its good legal framework and first-class infrastructure. The other major asset of the Company is the gathering of mining veterans, represented to the outside world by CEO Jim Engdahl.

    In the La Ronge Gold Belt of north-central Saskatchewan, the Canadians operate four properties totaling 33,843 hectares, including the Greywacke Lake, Preview North, Elizabeth Lake and Henry Lake properties. Late last year, a letter of intent was signed with Concast Metals for MAS Gold to acquire 100% of the Preview SW property. The 843-hectare Preview SW property is adjacent to Preview-North and hosts historic resources with a cut-off grade of 0.50 g/t gold.

    In addition, a formal agreement was signed with Eros Resources granting Eros the exclusive right to earn a 17.5% interest in all of MAS Gold's current properties by funding exploration expenditures of CAD 3.5 million over a six-month period. CEO Engdahl commented, "We would first like to thank Eros for this transaction to fund our 2022 winter drill program. This positions MAS Gold well to further enhance our key assets in 2022."

    BASF - Buyback in the big picture

    This shows confidence in one's own Company. Share buyback programs have a long tradition at the Ludwigshafen-based chemical group. The Group recently bought back shares for almost EUR 10 billion between 1999 and 2008. "Given the positive business development as well as divestments in 2021," BASF intends to buy back shares for EUR 3 billion by the end of 2023," the DAX-listed Company announced.

    The go-ahead for this is to be given this month and completed by the end of 2023 at the latest. Investment bank Jefferies left its price target for BASF at EUR 85 and a "buy" rating due to the announced share buybacks.


    Household financial assets are rising. However, the threat of punitive interest rates and rising inflation could reduce savings account balances. A switch to equities and precious metals would be one way of escaping this dilemma. BASF and Bayer are viewed positively by analysts, and the trend at MAS Gold is pointing in the right direction.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



    Related comments:

    Commented by André Will-Laudien on January 21st, 2022 | 13:15 CET

    Barrick Gold, Troilus Gold, Gazprom - Ready for takeoff: Gold ignites now!

    • Gold

    Increased geopolitical risks and inflation fears have created an initial reaction in gold. For weeks it stood motionless at USD 1,790 - 1,820. However, the intensification of the Russia-Ukraine conflict has now caused interest in precious metals to rise noticeably. The amount of gold held by the world's largest gold ETF also went up for the first time in two weeks. Since the beginning of the year, it has increased by around 3.7% to currently 981 tons. The highly regarded ARCA NYSE GOLD BUGS Index also moved significantly upwards with +7.8%. Where are the biggest opportunities in the gold market?

    Read

    Commented by Carsten Mainitz on January 21st, 2022 | 10:45 CET

    Yamana Gold, MAS Gold, Newmont - Entry opportunities!

    • Gold

    In recent months, gold stocks consolidated. The shares of the second-largest producer, Barrick Gold, were recently boosted by good quarterly data. From a historical perspective, the current price level of the precious metal can be considered high. The general conditions for rising prices are also good in the medium term. Now the sentiment for precious metal stocks could turn more positive again. These companies will certainly benefit from the next gold price rally.

    Read

    Commented by Stefan Feulner on January 20th, 2022 | 10:36 CET

    Nel ASA, Alerio Gold, Siemens - Difficult times

    • Gold

    Following the outbreak of the Corona pandemic, with its lockdowns and restrictions, the DAX has been going nowhere but up since its low of 7968.50 points on March 16, 2020. The world's leading indices also posted one high after another. Now the mood is changing due to fears of a tighter monetary policy by central banks. The question will be whether financial guardians can contain skyrocketing inflation rates without choking off growth. Along the way, the focus is likely to be on the sovereign debt ratios, which are rising sharply. It is unlikely to be possible to raise key interest rates too much. Therefore, even if the precious metals remain in a short-term correction, gold is likely to be one of the winners of the current process.

    Read