MON
Monsanto Company
Industrial/Transportation
12/19/2013
Presented
| Date | 12/12/2013 |
| Price | $110.26 |
| Market Cap | $57.90B |
| Ent Value | $56.38B |
| P/E Ratio | 23.54x |
| Book Value | $15.32 |
| Div Yield | 1.6% |
| Shares O/S | 524.91M |
| Ave Daily Vol | 2,570,000 |
| Short Int | 1.39% |
Current
| Price | $10.07 |
| Market Cap | $0.31B |
| Monsanto Company, together with its subsidiaries, provides agricultural products for farmers worldwide. It operates in two segments, Seeds and Genomics, and Agricultural Productivity. The Seeds and Genomics segment produces row crop seeds, including corn, soybean, cotton, and canola seeds principally under the DEKALB, Channel, Asgrow, and Deltapine brands; and vegetable seeds consisting of tomato, pepper, melon, cucumber, pumpkin, squash, beans, broccoli, onions, and lettuce seeds under the Seminis and De Ruiter brands. This segment also develops biotechnology traits that assist farmers in controlling insects and weeds in corn, cotton, and soybean crops under the SmartStax, YieldGard, YieldGard VT Triple, VT Triple PRO, and VT Double PRO, as well as Intacta RR2 PRO, Bollgard and Bollgard II, Roundup Ready and Roundup Ready 2 Yield, and Genuity brands; and licenses a range of germplasm and trait technologies to seed companies. The Agricultural Productivity segment manufactures and sells herbicides for agricultural, industrial, ornamental, turf, and residential lawn and garden applications for weed control, as well as for control of preemergent annual grass and small seeded broadleaf weeds in corn and other crops under the Roundup and Harness brands. The company sells its products through distributors, independent retailers and dealers, agricultural co-operatives, plant raisers, and agents, as well as directly to farmers. It has operations primarily in the United States, Europe, Africa, Brazil, the Asia-Pacific, Argentina, Canada, and Mexico. Monsanto Company has a strategic alliance with Novozymes A/S to discover, develop, and sell microbial solutions for farmers. The company was formerly known as Monsanto Ag Company and changed its name to Monsanto Company in March 2000. Monsanto Company was incorporated in 2000 and is headquartered in St. Louis, Missouri. |
Highlights
The presenter believes Monsanto (MON) is one of a few companies that “you could buy the stock for your kids today, and if you were to forget about it and look at it 18 years from now you would likely feel like you still know the business well.” MON was not always a good business, but once they began to transition R&D and focus to the seeds and traits business (at the expense of the traditional chemicals/ Roundup business), the story changed for the better. The company effectively has a 20-year lead on its competitors on the seeds/ traits side of the business, and the presenter believes the quality of MON’s seeds, its pricing power, and ability to innovate could lead to earnings growth that far outpaces current Street estimates over the next few years.
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