Shares on the stock market, trading opportunities
At the end of February, the German BAYER communicated a record operating profit of 13.5 billion in 2022, while for 2023 the prospects remain gray, both due to higher costs due to inflation and the rise in interest rates and because it continues to weigh the Monsanto/glyphosate affair litigation. Monsanto was a US multinational company specializing in agricultural biotechnology, known in the field of transgenic seed production and since 2005, after the acquisition of Seminis Inc, was also the world’s largest producer of conventional seeds. In June 2018 Monsanto was acquired by the German Bayer for 63 billion dollars, dfter a tough two-year battle and intense antitrust scrutiny (Once the merger was completed, the Monsanto brand was canceled).
The acquisition of Monsanto
However, with the acquisition of Monsanto, Bayer had also inherited the RoundUp product (containing glyphosate) and had to take charge even of the thousands of requests for maxi compensation filed in the US courts. In 2020, 95,000 lawsuits were closed with a 10.5 billion settlement (but around 25,000 applicants did not join the agreement and various lawsuits are still pending).
Il Wall Street Journalin a note from a few years ago, had indicated the CEOBayer’s acquisition of Monsanto as one of the worst M&A cases in modern history, alongside the merger of AOL with Time Warner and the acquisition of Countrywide by Bank of America. Naturally the effects were also felt on the Stock Exchange, with the share listed in Frankfurt which, already down from the highs of 143 euros reached in 2015, at the time of the acquisition of Monsanto in 2018 was listed at 100 euros and continued to fall from this level until at 39.91 euros touched in October 2020 and since then it has been inserted in a large triangular lateral.
The Bayer action
The lateral takes place in the 39/75 euro range and is destined to continue with a highly irregular trend, since the analysis shows that there will be retreats at 54 euros and then in the 48.50/45.50 euro area, and climbed up to 56.50/57.50. Weekly resistance at 70 euros (if exceeded, it would allow prices to extend into the 74/77 Euro area). Support fee 30 euros.
BAYER, an agro-chemical-pharmaceutical colossus, is one of the main pharmaceutical multinationals worldwide and counts aspirin among its most representative drugs. It is interesting to note how, over 100 years ago, he obtained heroin in his laboratories, starting from morphine. Bayer also introduced the first antibiotic widely used in medicine and the subject of the 1939 Nobel Prize in Medicine. Its areas of business range from human and veterinary pharmaceuticals, to agricultural chemicals and biotechnology, to polymers.
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