MON
Monsanto Company
Industrial/Transportation
04/29/2014
Presented
| Date | 04/24/2014 |
| Price | $110.60 |
| Market Cap | $58.00B |
| Ent Value | $57.46B |
| P/E Ratio | 23.21x |
| Book Value | $15.32 |
| Div Yield | 1.6% |
| Shares O/S | 524.17M |
| Ave Daily Vol | 2,950,000 |
| Short Int | 1.02% |
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
Monsanto has been a somewhat frustrating long position, as Management’s guidance for the third quarter was relatively soft vs. consensus expectations. They effectively undermined the base of the growth story, as “Investors had been baking in $5.50 per-share, and now we’re looking at $5.20 for 2014,” said the presenter. This has resulted in some selling pressure, but at ~$110 he believes the stock should have limited downside risk and there is substantial upside potential if Climate Corp ends up changing the profile of the company.
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