Dow/Monsanto's New Corn: Latest Data

Dow Chemical (DOW) and Monsanto (MON) have combined to develop a one of a kind corn seed, 'SmartStax'. Using Monsanto’s recent earnings release, we can start to put some hard numbers to it possible effect. (Here is a previous post on the subject)

This is from Monsanto’s earnings presentation on 10/8:

So, if we have 50-65 million possible acres for the product selling at $130 an acre (assuming no prices increases down the road, unlikely) we can get a market of $6.5 to $8.4 billion dollars for the two companies.

When people ask me why I am so positive on Dow, it is because of the Ag division with products like this, the solar division with its new shingles, an earnings profile being altered from basic to specialty chemicals (with the acquisition of Rohm & Haas) and the fact they can still sell that basic commodity business for substantial dollars.

Monsanto earnings call transcript

Comments

[funfun:]

SmartStax will leave DuPont's struggling seed house, Pioneer Hi-Bred Int'l further behind on the highway of innovation. DuPont's first major effort at developing and commercialising a genetically modified seed trail, parodically called OptimumGAP, cannot be used on a stand-alone basis "without risk"!

...funfun..

Oct 19 12:02 AM