Bayer AG (ADR) (NASDAQOTH:BAYRY.PK)

There are currently 120 BAYN:GY shares in my fund with break-even of around 63.23 EUR.
http://www.bloomberg.com/apps/quote?ticker=BAYN:GY.
http://caps.fool.com/Blogs/fund-trades/705717.

EPS estimates (if they are correct) indicate that Bayer AG should be trading near $90 per share. I don't know much about the company to be honest, but when I see something like this, its an easy call to make 90% of the time.

This portfolio tracks the performance of good vs. evil companies.

Evil attributes:
-4th largest toxic polluter in the world (http://www.peri.umass.edu/toxic100_index/)
-Inventor of mustard gas and heroin
-Nazi Fritz ter Meer became chairman of Bayer after having been sentenced at Nuremberg trials
-Supply antibiotics to livestock, creating dangerous antibiotic-resistant bacteria
-According to lawsuit, knowingly sold HIV-tainted blood products

Same pitch for all of my healthcare picks...headwinds are keeping the sector down, but expect the healthcare world to outperform as the market smoothes out, particularly those with good dividends.

Panic has beaten this solid company with really good products.

good portfolio of products and a well-run company

health products, we will always need

ADR is a major provider in the agriculture industry. Ag is on the rise which should benefit ADR.

Leading OTC pharmaceutical producer. Products are trusted and used widely and innovations are accepted.

Picked for their exposure to consumer fertilzers, a hot seller this spring

The two top products (Betaseron and Yasmin) are now at risk from generics. They have some nice products in the oncology area, but no other usefull products in the research pipeline. The merger with Schering financially was a succes but former Schering personel is leaving the new company in droves. This is not good as the top products profit-wise are former Schering products.

a standard in the pharmecutical field.

should always beat he broad index, right?

if they brough us aspirin they will deliver much more in the years to come, fine german company, did i say german? yes i did.

Quality, quality, quality. These are ADR shares in German-headquartered BAYer, and as their product line diversifies -- it already is pretty global -- their chances to improve earnings look good.

Some stats are horrifying -- no P/E to speak of, share price running within a percent or two of 52-week high. I wouldn't put up with this from an American stock, but BAY seems to be digesting the old Schering-Plough well enough, and with that comes close-to-giant opportunities, in diversified scientific and health area. Bayer AG could, over time, become the next JNJ.

Rthrombin is set to get approved in August. Once this comes out i expect it to bring up BAY value by 6% by itself over the next two to 4 years. Thats not counting the other drugs its got in its pipeline. Expect a 10-15% minimum annual growth over next 5 years.

Looking for a buyer and a breakup...

What the Market Is Missing: D'Amore believes the market is missing two factors that he thinks will drive Bayer's stock price higher. First, the company's prescription drug pipeline is in excellent shape. Nexavar for kidney cancer recently received FDA approval and is being tested for additional indications, including liver and skin cancer. Rivaroxaban, a promising new drug for hypertension, is in Phase III testing. The company also has eight other drugs in late-stage testing that are potentially significant revenue contributors. Second, D'Amore believes Bayer has excellent prospects for operating margin improvement. The company is capturing substantial operating leverage due to its decentralized operating structure and has been able to negotiate more flexible contracts with its labor unions than many European companies in the manufacturing sector. D'Amore thinks that Bayer will generate operating margins of 15% this year (up about 1 percentage point from 2006 after adjusting for nonrecurring items) and boost operating margins by another 4 percentage points by 2010.

Morningstar: "4 Stocks that should return at least 15%"
http://news.morningstar.com/articlenet/article.aspx?id=202979&pgid=rss