May 5th, 2022 | 12:57 CEST
Bayer, NervGen, Adler Group - Pharma and Real Estate, management in focus
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"[...] As a company dedicated to developing treatments for rare heart diseases, we see this as an opportune moment to contribute to the fight against heart disease and make meaningful strides in improving heart health worldwide. [...]" David Elsley, CEO, Cardiol Therapeutics Inc.
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Bayer - Awaiting US Supreme Court ruling
Bayer AG (WKN: BAY001, ISIN: DE000BAY0017) stockholders still need a thick skin. Ranked 15th and up 0.13%, the Bayer share was in the middle third of the DAX yesterday. Large upward movements are also not expected in the future. The reason for this is still the wait-and-see attitude concerning a Monsanto ruling by the US Supreme Court. As soon as it is clear how things will proceed there, the people of Leverkusen can either breathe a sigh of relief or take a deep breath. The background is the countless lawsuits against pesticides containing glyphosate suspected of causing lymph node cancer in humans. On June 7, 2018, Bayer, under the leadership of Group CEO Baumann, acquired the US company Monsanto - and along with the patents and industry expertise, the discredited products.
In addition to high market volatility, global corporations such as Bayer are also struggling with supply chain disruptions, politically charged conflicts such as embargoes in the Russia-Ukraine conflict, the explosion of energy prices and the associated tough pricing policies.
For investors on the stock market, the question is: continue to buy, hold or sell? Bayer is broadly positioned with its three divisions in Pharmaceuticals, Consumer Health and CropScience. Given the supply difficulties, the Group is focusing on expanding production facilities in California to become less dependent on international suppliers. Bayer is expanding its newest R&D area with Charité Berlin: Research into gene cell therapies. That means focusing on curable diseases that affect small cohorts of patients and whose price could bust many a health insurance budget. But that is a task that will take several years and, therefore, will not be reflected immediately in the share price.
NervGen - Impact investing to alleviate nerve diseases
Investors opt for diversification, like Big Pharma, with an offering to treat numerous diseases - or they choose the investment approach and dedicate themselves to a topic that interests them out of conviction. Those looking to dive into the world of neurodegenerative diseases should take a closer look at NervGen. NervGen is a publicly-traded (WKN: A2QP3D | ISIN: CA64082X2032 ) biotechnology company dedicated to discovering and developing therapies for patients suffering from nerve damage. A nerve condition can result from an injury, a neurodegenerative disease, or other causes.
According to Warren Buffett's value investing approach, one of the selection criteria for a solid company is its management. Also key are an immediately understandable business model and the motivations of the founders. In NervGen's case, the Company's foundation is based on a moving personal story: In March 2016, the daughter-in-law of co-founder Dr Purnett suffered such a severe fall in an accident that she is now a paraplegic. From the navel down, the girl no longer feels anything, can no longer move freely and needs nursing care - a traumatic event for all family members. To find a way out of this terrible situation, the doctor studies all available studies on spinal cord injuries. In his research, he discovers in the work of Dr Jerry Silver at Case Western Reserve University (CWRU) a revolutionary technology for nerve regeneration based on deep biological logic. Dr Silver and Dr Punnett began a conversation that led to the formation of NervGen Pharma Corp. in 2018. NervGen's developments and passionate work on its pharmaceutical products are intended to help not only the little girl but all people who suffer from paraplegia to date. Currently, the Company is in the phase of clinical trials. Those who invest here are betting in the long term on regaining the quality of life of patients with nerve disorders whom fate has relegated to a wheelchair. NervGen focuses its research on the self-healing powers of the nervous system. Read more here. For a personal impression of the management and an immersion into the investment case, the upcoming International Investment Forum offers interested investors an opportunity to get to know the investment case and CEO better. The free registration is currently open. Click here to register.
Adler Group - Nerves on edge - An entry opportunity?
The strategy of value investors includes the classic motto "buy when the cannons are firing". In other words, get in when the share price has fallen low, and the Company's actual "fair value" does not seem to be affected. In the case of disastrous share price collapses, value-oriented investors speak of a so-called event. An event that can cause the Company to lose part of its reputation, but with appropriate measures in the interests of investors, the Company can get back on the road to success. Such an event can take two to four years.
A look at Bayer's stock could lead investors to believe that with the decision of the US Supreme Court, there is finally clarity about the lawsuits in the Monsanto case. However, looking deeper, this approach is a repeat act for Bayer, as researchanalyst.com describes.
At Adler Group (WKN: A14U78 / ISIN: LU1250154413), memories of the Wirecard case come to mind. There, too, the initial revelations were just the tip of the iceberg from a web of fraud. Adler Group CEO Stefan Kirsten told investors that Adler was still working to resolve issues with auditor KPMG and was not in breach of bond terms, which helped the shares recover about half of Monday's slump. But did it take KPMG not confirming the financial statements to get to this point, investors ask? Adler is barred from banks and markets for funding; meanwhile, German regulator BaFin is still investigating the Company and shareholder groups are threatening legal action. Caution is the order of the day.
"Let's not sugarcoat anything, ladies and gentlemen," Mr Kirsten said at Tuesday's analyst conference. "It is a difficult moment for the Company and therefore for us. But it is also a moment of new beginnings for the Adler Group."
The stock market is currently like a roller coaster ride. Highly volatile market phases are suitable for reviewing one's investment strategies. Is there confidence in the management of the shares presented? Are the actions and procedures comprehensible? And would investors stay invested in one of the stocks for five years? Those who answer this question in the affirmative should carefully consider whether the investment is also justifiable five minutes later. A deep look and a comprehensive analysis of a business model and management helps investors make the right investment decision. And sometimes, by doing so, one also supports companies that can truly change the world.
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.
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