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January 26th, 2022 | 11:01 CET

Bayer, MAS Gold, BASF: 5.7% dividend? These intrinsic values score now!

  • Gold
Photo credits: pixabay.com

According to capital market strategist Ulrich Stephan from Deutsche Bank, substantial stocks could have an advantage in the upcoming market phase. The reason: When interest rates rise, the refinancing costs for growth companies increase significantly, as they usually do not write any or few profits. Reason enough to take a closer look at two of the best-known German substance companies and ask whether there are also growth stocks with substance.

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

Table of contents:


    Bayer: Population growth as a trump card

    Bayer, the chemical company from the Rhineland, has been considered an insider tip for some time. Since the Monsanto takeover and the glyphosate scandal, the Company has been a thorn in the side of some observers. Still, the Leverkusen-based Company is secretly and quietly working on the future. This work includes highly potent seeds and new collaborations in the biotech sector. Most recently, Bayer entered into a cooperation with a company from the cannabis sector. In general, Bayer exudes a great deal of imagination despite being a substance stock.

    The agrochemicals sector plays a central role in this. Since plant-based nutrition appears to be in demand with a view to the future and is also quite en vogue from a sustainability point of view, Bayer is well positioned with its division, which, after all, accounts for around 45% of sales. A growing world population will also ensure good sales at Bayer. Added to this is a handsome dividend. Bayer may not be a high-flyer, but it has what many investors are looking for right now: substance.

    MAS Gold: Great progress, hardly noticed

    One Company that must be considered a growth company when looking at its small market capitalization is MAS Gold. The gold company from Canada has continuously expanded its land rights and made strategic acquisitions in recent months. MAS Gold operates in the eastern part of the Canadian district of Saskatchewan, which is considered a typical mining region and offers companies optimal conditions, especially in the early stages. Along the historic La Ronge and Kisseynew Domain gold belts, MAS Gold now owns 33,843 hectares of land. MAS Gold is thus implementing the hub-and-spoke model it has always pursued, whereby several smaller properties are to be exploited with the help of central processing facilities. However, MAS Gold is also making progress operationally. Greywacke North reports 101,000 ounces of gold indicated and 55,000 ounces inferred since December last year. The Company is currently completing economic feasibility analyses for several properties and announced additional drill programs and a summary resource estimate before the end of the first quarter of 2022.

    The concept of MAS Gold ensures a continuous news flow, which has already been reflected in rising share prices in recent trading weeks. Although the Company with a market capitalization of less than EUR 12 million must be considered a speculative growth stock, the latest corporate news increasingly completes the picture of a successfully implemented growth strategy. As several small projects are often not adequately perceived by the market, the summary resource estimate announced by the Company in its current presentation for the first quarter of 2022 could shed more light and convince investors. As gold gains attractiveness, especially in crisis-ridden market phases, investors should not ignore this growth stock with substance.

    BASF is stepping on the gas! But what is the market doing?

    Much more boring than MAS Gold might be the share of BASF. Nevertheless, the Ludwigshafen-based Company, with operations in 80 countries worldwide, is considered a promising substance stock. Agricultural chemicals are also doing well here. BASF offers basic chemicals, industrial products and even products related to nutrition and care. In the first nine months of the fiscal year, the Palatinate-based Company increased its sales by 36% to a whopping EUR 58.5 billion. Profits also rose by more than 160%. Therefore, it is no wonder that BASF, with a current dividend yield of 5.7%, is extremely well received by the market. The recent dip in the share price should not shock investors. However, it shows that even a value stock like BASF cannot detach itself from the market as a whole.


    Even in difficult market phases, there are shares with potential. Substantial stocks offer dividends and a crisis-proof business. But growth stocks that implement a unique strategy and have been insufficiently perceived by the market so far can also decouple themselves from the general stock market sentiment. It remains to be seen whether MAS Gold will succeed, but the constellation around several smaller projects, a joint resource estimate and data on the economic feasibility in the coming months gives hope.


    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

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    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



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